Buyers Guide

Table of Contents

• What is Construction Estimating Software?
• What are the common features of Construction Estimating Software?
• What are the benefits of Construction Estimating Software?
• How much does Construction Estimating Software cost?
• Key considerations when choosing Construction Estimating Software

What is Construction Estimating Software?

Construction estimating software assists construction businesses in estimating costs related to material, machinery, and labor utilization. It uses a centralized pricing database to estimate the total cost of a construction project based on factors such as location, minimum wage, and material cost. The estimates can be customized per changing project parameters such as scope or timeline changes.

The software electronically analyzes construction blueprints and drawings to determine material takeoffs—i.e., a detailed list or calculation of all the materials and quantities needed for a project. Material takeoffs help estimate project costs and create procurement lists, ensuring the right materials and quantities are ordered for construction.

The reporting and analytics capabilities of the software enable businesses to monitor project progress and identify improvement areas to boost construction efficiency and team productivity. Most tools also allow users to create bids and proposals.

What are the common features of Construction Estimating Software?

• Job costing: Track the cost of various components associated with construction projects or jobs, including materials, labor, equipment, and overhead. This feature also identifies cost overruns by comparing the actual project expenses against the estimated costs.
• Proposal generation: Create project proposals that include details such as the cost breakdown and project timeline. Add custom logos, fonts, and colors to the proposals to reflect your unique brand identity.
• Cost database: Maintain a digital repository of project costs, including material, labor, and equipment rates. This database can be automatically or manually updated based on changing industry conditions. Automatic cost databases typically draw data from external databases or pricing indices, such as the Producer Price Index (PPI) or Construction Cost Index (CCI), for real-time or periodic updates.
• Project management: Plan, schedule, and manage construction projects from start to finish. Project management tools typically include task assignment, job scheduling, progress tracking, and communication to keep your teams coordinated and projects on track.
• Audit trails: Maintain a record of all modifications, additions, and deletions made to project documents, such as estimates and proposals, over time. The record includes the date and time of the activity and details of the user who performed it, which are essential for compliance tracking.

What are the benefits of Construction Estimating Software?

• Enhances data integrity: Construction estimating solutions include a cost database that provides material, labor, machinery, and other project-related costs. This database is based on industry standards and automatically updated as costs change. Additionally, the software offers data validation capabilities to check for errors and inconsistencies in the collected project data, such as cost estimates, pitches, and blueprints. These features maintain accuracy in data and lead to quality construction projects.
• Optimizes project costs: Construction estimating software helps track actual costs against the estimated costs, identify overruns, and take corrective action. It also assists with resource allocation by tracking real-time project activity for labor, material, and equipment usage. It monitors metrics such as idle time, overstaffing, and underused and overused resources. This allows your business to stay within budget while maintaining project quality. Additionally, the cost database lets you compare multiple vendors and select the one that fits your budget.
• Improves project management: Most construction estimation software tools include a real-time project tracking feature that records project activities as well as issues such as labor unavailability, material shortages, equipment breakdowns, or unforeseen weather-related disruptions. This data is analyzed using the project dashboard to create detailed performance reports, including progress reports, cost breakdowns, and resource utilization summaries. Your business can leverage these reports to identify improvement areas and optimize your project management strategy to reduce errors or delays.
• Enhances team communication and collaboration: Construction estimating software provides a centralized platform for all project-related information. Project team members can access the latest data, share updates, and collaborate on estimates and proposals in real time. This streamlines communication among your stakeholders, including architects, contractors, and clients. Additionally, some tools offer comment and feedback features, enabling your team members to provide suggestions on project documents, such as design plans and construction schedules.

How much does Construction Estimating Software cost?

Most construction estimating software tools on the market are priced on a “per month” basis, and their entry-level pricing plans range from $20 to $500+*. An enterprise product that’s priced higher may include additional features such as detailed estimates, residential construction estimates, and premium support options.

Key considerations when purchasing Construction Estimating Software

• Check the construction estimation method. Keep in mind that different software tools use different estimation methods, such as quantity takeoffs, historical data analysis, and parametric modeling, to determine the total construction budget. The estimating method’s accuracy, data sources, and adaptability to project phases are other factors to evaluate. Moreover, assess how well an estimation method incorporates risk analysis to account for uncertainties such as market fluctuations or project scope changes. This will help you choose an estimation method that fits the type of construction projects you work on.
• Assess bid management capabilities. Construction bid management capabilities include automated document preparation, proposal assembly, and deadline tracking. These features enable your business to prepare and submit bids efficiently for increased winning chances. Additionally, the software should let you track and maintain a database of all requests for proposals (RFPs) and requests for quotations (RFQs) for future reference.
• Evaluate template customization options. Most construction estimating solutions include pre-installed templates to create cost estimates, bid proposals, project schedules, invoices, change orders, budget plans, etc. Consider factors such as the types of templates available and the level of customization you can apply. Typically, you should have the flexibility to include custom elements such as your company logo, font, color, background, and graphics.