The Essential Guide to Construction Estimating Software for Small Business 

construction estimating software for small businesses

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. 

Table of contents:

Challenges Faced by Small Businesses When Estimating 

Construction software for estimating addresses several pain points for small businesses. Consider the following.  

Old or outdated tools 

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. 

Risk management 

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.  

Limited resources 

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. 

Competition 

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.   

Benefits of Construction Estimating Software for Small Business 

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.  

Improved accuracy and efficiency 

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. 

Time savings 

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.

Improved resource allocation  

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. 

Better communication and collaboration  

The estimating process doesn't happen in a vacuum. You need to coordinate with other stakeholders, including owners, construction 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.  

Enhanced compliance 

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

Increased profitability 

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. 

Key Features to Look for When Choosing Estimation Software 

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.  

Ease of use  

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. 

Cloud-based 

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. 

Robust cost database  

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). 

Connected takeoff and estimating 

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.  

Automation capabilities 

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. 

Flexibility 

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. 

Integration with other workflows and software 

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. 

Why Small Construction Businesses Love Autodesk’s ProEst  

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

Grace Ellis

As Manager of Content Marketing Strategy at Autodesk and Editor in Chief of the Digital Builder Blog, Grace has nearly 15 years of experience creating world-class content for technology firms. She has been working within the construction technology space for the last 6+ years and is passionate about empowering industry professionals with cutting-edge tools and leading strategies that improve the quality of their jobs and lives.
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We use Trendkite to deploy digital advertising on sites supported by Trendkite. Ads are based on both Trendkite data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that Trendkite has collected from you. We use the data that we provide to Trendkite to better customize your digital advertising experience and present you with more relevant ads. Trendkite Privacy Policy
Hotjar
We use Hotjar to deploy digital advertising on sites supported by Hotjar. Ads are based on both Hotjar data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that Hotjar has collected from you. We use the data that we provide to Hotjar to better customize your digital advertising experience and present you with more relevant ads. Hotjar Privacy Policy
6 Sense
We use 6 Sense to deploy digital advertising on sites supported by 6 Sense. Ads are based on both 6 Sense data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that 6 Sense has collected from you. We use the data that we provide to 6 Sense to better customize your digital advertising experience and present you with more relevant ads. 6 Sense Privacy Policy
Terminus
We use Terminus to deploy digital advertising on sites supported by Terminus. Ads are based on both Terminus data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that Terminus has collected from you. We use the data that we provide to Terminus to better customize your digital advertising experience and present you with more relevant ads. Terminus Privacy Policy
StackAdapt
We use StackAdapt to deploy digital advertising on sites supported by StackAdapt. Ads are based on both StackAdapt data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that StackAdapt has collected from you. We use the data that we provide to StackAdapt to better customize your digital advertising experience and present you with more relevant ads. StackAdapt Privacy Policy
The Trade Desk
We use The Trade Desk to deploy digital advertising on sites supported by The Trade Desk. Ads are based on both The Trade Desk data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that The Trade Desk has collected from you. We use the data that we provide to The Trade Desk to better customize your digital advertising experience and present you with more relevant ads. The Trade Desk Privacy Policy
RollWorks
We use RollWorks to deploy digital advertising on sites supported by RollWorks. Ads are based on both RollWorks data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that RollWorks has collected from you. We use the data that we provide to RollWorks to better customize your digital advertising experience and present you with more relevant ads. RollWorks Privacy Policy

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We care about your privacy. The data we collect helps us understand how you use our products, what information you might be interested in, and what we can improve to make your engagement with Autodesk more rewarding.

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