If you're a small business, you may wonder if construction estimation software is necessary. Maybe your operations are relatively straightforward, and your current spreadsheets or manual methods are working mostly fine. Or perhaps you're concerned about the costs or the learning curve of new software.
Regardless of your firm's size, adopting the right construction estimating software can significantly streamline your workflows and enhance project profitability. After all, construction projects (big or small) require accurate estimates to stay on schedule and maintain profit margins.
This guide will discuss why investing in construction estimating software for small businesses is a game-changer. In addition to exploring its advantages, you'll learn what features to look for and the challenges they solve.
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Construction software for estimating addresses several pain points for small businesses. Consider the following.
Some small businesses may be more used to estimating using traditional tools like spreadsheets. And while these tools feel safe and familiar, they also hold you back from creating accurate and competitive estimates.
Spreadsheets, along with manual data entry and calculation, are error-prone, as even a single incorrect cell entry or broken formula (the dreaded #REF!) can skew entire project estimates. They're also time-consuming, and you may spend hours or even days adjusting and validating numbers before finalizing a bid. Estimators must produce accurate estimates quickly, so relying on spreadsheets can prevent you from being responsive to project opportunities.
Not only that, but these documents often live in silos and can't connect to other workflows or phases of a project. That means you have limited visibility over the project's progress, budget, and profitability.
Managing risk can be particularly challenging, especially for small businesses who must ensure they have enough resources to cover unexpected costs and project delays while still delivering within budget.
Additionally, managing change orders effectively is crucial, as smaller firms may struggle with tracking and integrating these changes into their estimates in real-time.
Small businesses have fewer team members, resulting in estimators handling multiple projects (and sometimes roles) simultaneously. When you're juggling multiple bids, deadlines, and client expectations, it's all too easy to make errors or miss critical details in your estimates. Additionally, the lack of automation and integrated workflows also adds to the workload, so it can be hard for estimators to produce timely and competitive bids.
Competing against larger firms with more resources and experience can be daunting. These companies often have access to specialized construction software for estimating and dedicated staff for every aspect of the construction bidding process, giving them a significant edge.
Smaller businesses not only have to compete on price but also need to prove their ability to deliver quality work efficiently.
Estimating software can help small construction firms navigate the challenges above (and so much more). Here are some benefits you can unlock when you adopt the right solution.
Estimating software provides precise calculations, reducing the likelihood of human error in estimates.
And thanks to standardized templates and processes, estimates are consistent across different projects. This consistency enhances accuracy and improves reliability in client proposals and internal budgeting.
In other words, you can put your best foot forward by delivering highly professional, accurate, and competitive estimates that boost your chances of winning bids.
Robust estimating software provides automation capabilities that can reduce the time spent creating initial estimates compared to manual calculations. So rather than manually inputting data and double-checking for errors, you can quickly generate estimates with pre-populated data and built-in calculations.
These solutions also centralize your project data and workflows, which means you won't have to waste time searching through multiple spreadsheets or documents to find the information you need. This leads to faster turnaround and more time to focus on higher-value tasks, such as client communication and construction project planning.
The software offers valuable insights and analytics so you can make smart decisions throughout the estimation process. For example, it gives you access to aggregated historical data from past project bids and estimates, giving you a better idea of how to allocate labor, materials, and equipment.
All this is crucial, especially for smaller firms. Clear visibility into resource needs and costs enables you to efficiently handle more projects and scale operations without overextending your resources.
The estimating process doesn't happen in a vacuum. You need to coordinate with other stakeholders, including owners, subcontractors, and suppliers. Estimating software (cloud-based solutions in particular) facilitates smoother collaboration among team members by offering a centralized platform for sharing and accessing project estimates.
Estimating software can improve documentation, which in turn enhances compliance with local building codes, industry standards, and regulations. Certain solutions allow users to integrate these compliance requirements directly into their estimating process, minimizing construction risk.
Although the initial investment in estimating software may seem high, it results in significant cost savings over time. As mentioned above, the benefits of having the right estimating solutions range from higher efficiency to more accurate cost forecasting and reduced rework, ultimately boosting your profitability.
Already sold on the idea of investing in estimation software for your small business? Here are some of the features and capabilities to look for.
You're adopting estimating software to make your life easier, so the last thing you want is to have a solution with a steep learning curve for your estimators. Look for software that's intuitive and simple to navigate. While a ramp up to getting on boarded is to be expected, your team should be able to grasp the software relatively quickly.
We've alluded to this earlier, but it's worth emphasizing. Set your sights on a solution that works in the cloud so you can centralize information and access estimates from anywhere.
Cloud software also enhances collaboration by allowing real-time updates and seamless communication across project stakeholders.
To be safe, select a platform that offers secure data storage and backup options to protect sensitive information.
A comprehensive construction cost database is crucial for any estimating solution, even for a small construction firm. If you already have a detailed database, integrating it into cloud-based estimating software should be straightforward. If not, opt for a software solution that offers detailed and accurate pricing information. A robust database ensures precise and efficient estimates, helping you avoid the pitfalls of overestimating (losing the bid) or underestimating (losing profit).
One common challenge in construction is the disconnect between takeoff and estimating processes. This inefficiency can result in errors and delays, especially if data is manually entered in separate systems. Small construction businesses should look for estimating software that integrates both takeoff and estimating processes in the cloud. This connected approach minimizes errors and allows for real-time updates, providing a more streamlined and accurate estimation workflow.
The goal is to save time and reduce the chance of human error, so select a system that enables you to put parts of the estimation process on autopilot.
Specifically, make sure it automates repetitive tasks and complex calculations. For instance, can you automatically create new conceptual estimates using unit costs when new project inputs are added? Ideally, your solution should also give your small business the ability to handle multiple estimates and projects simultaneously, improving efficiency across your workflows.
Opt for a solution that can scale with your business, enabling you to accommodate more projects and users when needed.
Our best tip? Go for a tech vendor that offers flexible licensing options to suit the size and budget of the business. Instead of being locked into a rigid pricing structure, find a solution that can grow with your business.
You can improve the accuracy of your estimates by connecting your design and preconstruction workflows. That's why you should aim to adopt estimating software that integrates with other solutions in your business—including construction project management, accounting systems, and CRM platforms.
Look for easy import and export functions to share data across different systems. That way, you ensure seamless data flow, reducing duplication of work and maintaining consistency across all aspects of your project management.
Autodesk Construction Cloud's ProEst solution delivers all the construction estimating software features and benefits we discussed above. From cloud-based capabilities to automated workflows, ProEst ensures that your small (but mighty) business can produce competitive estimates.
It's also flexible and scalable, growing with your firm as you take on more projects and clients. Ready to take estimating at your small business to the next level? Learn more about ProEst here.
