So, you’re in the market for a new estimating solution. Before getting any further, it’s important to evaluate the tangible results you expect from new estimating software. For instance, will a new tool cut estimating time? Eliminate errors? Improve profit margins? What is the real problem—or problems—that your construction company needs to solve?
In this blog, we’ll look at five things every construction company should consider before making a new investment in estimating software—from the urgency of the business need to the reputation of the provider you select. Let’s explore how you can make the best decision for your business needs.
By the time most construction companies start to actively explore new cost estimating software, they’ve usually recognized issues with their current process they need to fix. For many, it’s a matter of efficiency; estimates take too long to produce or contain errors, or systems that are unusable for back-office tasks. When even a tolerable level of inefficiency starts to impact business productivity and profitability the scales begin to tip and getting a new solution becomes a more urgent matter.
Less obvious are issues with back-office system integrations. For many accounting and project management teams, taking the time to reenter estimate data into a different program is a familiar “business as usual” task. Moreover, it can be almost impossible to accurately measure the amount of waste. If you see process bottlenecks that produce a cascade of negative impacts over the project lifecycle, an alternative estimating solution should be implemented before the problem grows.
Alternatively, construction companies who anticipate active growth mode can avoid potential business disruption and process glitches by implementing a robust and scalable estimating solution ahead of time.
Applying a “what if” scenario can be a useful exercise for contractors who are unsure of their level of urgency. Imagine, for example, that your company could increase the number of estimates you prepare next month by 50%. How would that affect your revenue? Would it enhance your ability to take on more projects, hire more workers, and grow as a company?
Questions to ask:
If you answered “yes” to even one of the questions above, your company may have an urgent need for a more powerful and productive estimating system.
We’re all familiar with what can happen if a company lives on the bleeding edge, blindly adopting untested strategies and technologies that don’t deliver on promises. It’s expensive, disruptive, and can lead to resistance to change among key decision-makers. But what are the impacts of resisting change to the point that your construction company does too little, too late?
Project estimating is the perfect example. For years, construction companies of all sizes relied on pencil-and-paper estimates that were slow to produce and prone to error—and many still do. Others adopted Excel as their primary estimating tool and now feel stuck using a generic tool that lacks the power needed for complex calculations and is difficult to customize for many construction estimating requirements.
So, to what degree are the limitations of manual calculations and Excel spreadsheets affecting your company’s ability to produce winning bids, strengthen client relationships, closeout profitable jobs, and maintain a healthy growth strategy?
Questions to ask:
If you answered “yes” to even one of the questions above, your company is probably suffering the consequences of inaction and could realize significant benefits from new estimating system.
Even the best construction estimating software can’t deliver the business outcomes you want if your people are unable or unwilling to use it. That’s what made Excel spreadsheets a popular choice among construction estimators when alternatives were few and far between.
Spreadsheets represented a major step forward from pencil-and-paper calculations in terms of speed and accuracy, and because they were relatively easy to use, estimators were willing to make the leap. Fast forward to today’s more advanced, construction-specific estimating solutions, and to many, Excel looks generic, clunky, and dated by comparison. Still, some estimators cling to the familiarity of Excel and try their best to ignore its deficiencies.
So, how can you be sure that your estimators will embrace a new estimating platform before you invest? Doing so requires choosing a solution that combines powerful functionality with convenience and ease of use. Here are three important things to look for:
A simple interface. A simple and user-friendly interface can do a lot to encourage new users to engage with and use an unfamiliar estimating platform, speeding adoption and offering the reward of improved productivity. One-click functionality and graphical dashboards are a boon to novice and non-technical users, which shortens the learning curve.
Customized training. Having a range of training options to choose from is essential to catering to different learning styles and company cultures. Hands-on, face-to-face training sessions combined with online tutorial and practice sessions have been shown to be most effective in developing new skills, improving morale, and encouraging adoption.
Ongoing support. No one likes to think they’re on their own, especially when it comes to resolving issues with new software. Higher levels of buy-in for your new estimating platform will come from knowing that expert support teams are ready, willing, and able to answer user questions and address any problems that arise, especially during the implementation period.
Questions to ask:
If you answered “yes” to all the questions above, your company should expect company-wide buy-in for your new estimating system.
As estimating platforms advance and user adoption accelerates, product options are proliferating. All of them will tell you that their solution is the one: cheaper, faster, easier, etc. Sorting out the differences, strengths, and weaknesses can be taxing.
It’s important to know exactly what you’re buying. Some key definitions to know:
When it comes to an estimating solution, you have a choice. Either (1) install the software on desktop computers or servers that you own, or (2) gain access to the tool online, via a web browser and mobile devices that connect to the cloud. Many contractors find that the convenience of a cloud-based estimating platform is hard to beat with always on access to data, automatic updates, and scalability depending on estimating volume.
Before you spend a dime on construction estimating software, take a good, hard look at the cost of the estimating solution(s) your company is considering. Generally, construction estimating software returns on its investment quickly. For instance, it can save your estimators significant time as compared to manual methods of cost calculation. But keep in mind that different providers use different pricing models, some more flexible than others.
Lastly, take consider the following before you make your decision:
Questions to ask:
If you answered “yes” to all the questions above, you have a clear sense of what product options are available to you and how they align with your estimating needs to make an informed investment decision.
“Price,” “cost,” and “value” are all three separate things. For a construction business, bottom-line value is often defined by how much return on its capital investment can be reasonably expected, the higher the better.
Before purchasing construction estimating software, contractors should specify, even quantify their expectations of the business value it will deliver, now and over time. That way, you’ll have a realistic before and after picture of what you’ll get in exchange for your money that will inform your investment decision.
If you’ve identified an estimating issue that you know for a fact is costing you money—e.g. lost bids or unprofitable jobs—the value of resolving it quickly with a new estimating solution is clear. Less dramatic, but more important for the long-term success of your company, are underlying process issues that have been tolerated or ignored in favor of maintaining the status quo. Making a major change to your estimating process requires a certain amount of inertia among stakeholders, but delaying the decision to upgrade may be costing your company more than you realize.
Let’s use integration as an example. Integration essentially eliminates bottlenecks (such as data transmission and conversion) and reduces the inefficiencies of dealing with multiple software solutions, saving time and money.
Questions to ask:
If you answered “yes” to even one of the questions above, your company could expect a positive return on investment for a new construction estimating system.
Ultimately, every construction company must decide on its own if making an investment in estimating software is the right thing to do. By asking yourself the above questions, you will have a better picture of your own business needs, wants and expectations, as well as what next steps to take.
Are you ready to explore powerful cloud-based estimating software that combines estimating, takeoff, and bidding workflows? Learn more about ProEst.
