Exclusive Neuroject Article: Estimator in construction is arguably the most important aspect of a construction project. It is the process of figuring out the prices of the materials, labor, equipment, and overhead associated with a construction project and using the results to produce an estimate, bid, or project budget.
As a contractor or estimator in construction, you know how important it is to accurately estimate construction project costs. However, manually estimating a job’s material, labor, and equipment expenses can be challenging. Thanks to the modern estimator in construction methods, you will be able to quickly and accurately estimate costs as you prepare your next proposal.
Whether you are a contractor or a property owner, you should know exactly how much a job will cost and how long it will take before you start. In this guide, you’ll get an in-depth vision of the basics of modern estimating in construction, including how it fits into the construction process and what can cause costs to rise unexpectedly.
Table of Contents
What is a Construction Cost Estimator?
In the United States, individuals known as “Estimators” are essentially what the rest of the world refers to as “Surveyors,” and this profession has a long history spanning thousands of years. In contemporary construction teams, an estimator in construction plays a crucial yet often underappreciated role. Regardless of their location, they bear the highest risk while receiving the least recognition for their achievements. Their success is a pivotal factor in a company’s ability to remain profitable.
Surveying Origins of Estimator in Construction
To comprehend the evolution of a modern estimator in construction and its exciting future prospects, it’s essential to delve into the origins of this profession. The foundation of today’s quantity surveying can be traced back to the aftermath of the Great Fire of London in 1666. Prior to this, builders and masons were typically compensated on a daily basis, which didn’t necessitate a comprehensive understanding of a project’s total cost from the outset.
However, this doesn’t mean the profession didn’t exist earlier, as even historical texts, such as the Bible (Luke 14:28), emphasize the importance of cost estimation. There are records dating back to 2500 B.C. related to the construction of pyramids and Egyptian temples, mentioning a “measurer of royal works.” Remarkably, despite millennia passing, the profession’s name has remained relatively consistent.
After the Great Fire, wealthier individuals started hiring others to design and construct their homes, resulting in standardized compensation for craftsmen. This shift emphasized the need to precisely determine the quantity of work required, paving the way for competitive bidding and rate negotiations between master builders and property owners.
Surveying practices gained credibility in the late 1700s and continued to evolve until the late 1860s, marked by the election of John Clutton as the first president of the Surveyors’ Association in London, which has since become the Royal Institution of Chartered Surveyors, boasting 134,000 members. While the term “surveyor” encompasses various professions, from building surveyors to land surveyors and environmental surveyors, the focus today primarily centers on quantity surveyors.
The Same Role with New Tools and Mindsets
Surveyors before 1990 were predominantly reliant on manual methods. Imagining the estimation of monumental projects like the Golden Gate Bridge (1933), the Empire State Building (1930), and the Eiffel Tower (1887) using only pen and paper is daunting. The effort and potential margin of error must have been substantial.
Fortunately, it’s no longer the 1980s, and an estimator in construction today has access to a wide array of tools. Building Information Modeling (BIM), cloud-based takeoff tools, estimating databases, historical cost analysis, value engineering tools, carbon tracking tools, and more enable estimator in construction to be highly precise and confident in their calculations.
While the construction industry has evolved since the 1980s, the core objective of an estimator in construction remains unchanged: delivering the proposed budget for the work as swiftly as possible. What has evolved is the mindset of an estimator in construction, who are eager to embrace technology and a more analytical approach to their tasks.
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The Estimator in Construction of 2022
The modern estimator in construction takes the age-old task of cost development to new heights. A contemporary estimator’s workspace typically includes a 3D model, PDF contract documents, and a reference list of similar projects from the past decade. They engage in frequent meetings with project stakeholders, proactively collaborating, and influencing design to reduce risks. Their involvement begins with ensuring a clear understanding of costs even before the project documents are created.
Upon receiving the model, they shifted their focus from quantification to analysis. They establish quantities immediately, saving time and enabling better risk assessment. The essence of their job lies in understanding what isn’t explicitly shown and filling those gaps. It’s about providing an estimate, not an exact figure, with the primary goal being to place the project within the right cost range while maintaining confidence in the provided number.
Notably, some still harbor skepticism regarding 3D models, and contractual limitations may hinder their ability to adopt advanced technology and collaborative practices. Ultimately, the emphasis is on certainty, which often outweighs short-term cost savings.
Embrace the Golden Age of Estimation
The responsibility for driving change extends to solution providers, as they must innovate and offer cutting-edge tools to the industries they serve. The estimator in construction has long awaited this transformation, and it’s safe to say that their golden age has arrived. An estimator in construction is increasingly tasked with managing multiple projects, but time remains a finite resource. Success hinges on doing more with less, and technology has bridged this gap after many years.
Why is an Estimator in Construction Necessary for Constructors?
To help manage projects more effectively, an estimator in construction projects provides cost, material, and labor estimates. No matter how big or little, there are a variety of factors that might affect construction projects. A construction project may encounter numerous difficulties, such as a lack of materials, inclement weather, labor problems, and cost overruns.
Even though it’s improbable that you’ll run into all of these problems, it would be a real blessing if you were to manage your construction project without any problems at all. Estimator in construction are a great source of useful information for all parties involved and help builders, suppliers, and contractors plan and organize their projects even though it is hard to get entirely exact findings.
Learning About the Estimator in Construction
The process of calculating the roughly accurate but specific expenses related to a construction project is known as estimating in the industry. It is often referred to as construction cost estimation or just estimating. An expert contractor can quickly estimate a little project in their head. The approach necessitates substantially more research to produce an accurate estimate of building costs for large projects that call for comprehensive bids.
The contractors and their subcontractors will need to generate a takeoff list using the data in the bid package to calculate the quantities and costs of all the goods, tools, and labor required for their job to create these estimates. The term “construction takeoff” describes the quantity of materials and staff necessary to finish a construction project.
An estimator in construction projects calculates the expenses associated with completing it Before a project is started. For instance, an estimator utilizes the plans and requirements for a huge construction project to calculate the entire cost of the building. When submitting a proposal for a contract, a cost planner determines the project’s costs and the optimum price.
The sorts, quantities, and timing of each material as well as the labor needed for each portion of a construction project that is under the contractor’s purview are all identified by an estimate using blueprints. To gather this information, this method is employed. Following that, the takeoff list is used to create the project bid and cost estimate. To manage the estimating and bidding process and save time and money, contractors, builders, and anybody else who frequently estimates prices as an estimator in construction projects or files bids for construction contracts can use technology.
To develop estimates, an estimator works with suppliers, engineers, and architects. A cost planner considers all factors important to the business, such as overhead costs, contractor fees, and timetables, while developing a project’s cost analysis.
Types of an Estimator in Construction
Three types of clients or companies use an estimator in construction. Although the cost estimations are conducted similarly, each has a different focus.
1. Contractor’s Cost Estimator in Construction
The cost estimator in construction examines the project’s viability and scope to make sure it falls within the contractor’s purview of work and that a profit can be earned. A cost estimator is used by a contractor to create contract bids. In general, you don’t want your bid to be the lowest or highest because these are frequently disregarded. Therefore, quotes must be competitive, expert, and accurate. A contractor wants to bid on projects they can complete, profit from, and manage within the project deadlines.
2. Engineer’s Cost Estimator in Construction
An engineer might get assistance from a cost estimator in generating a draft or plan that offers high-quality work at a reasonable price. If the engineer’s present suggestions won’t work for the project, they can achieve this by suggesting alternate construction techniques or materials. The location of the construction project and the logistics of getting everything to the construction sites are two factors that the estimator in construction will take into account.
3. Client’s Cost Estimator in Construction
In this case, the cost estimator in construction is involved from the project’s conceptual stage onward. As opposed to huge construction projects like a shopping center or apartment building, it is typically a smaller job, like building a house. Here, controlling the client’s expectations, maintaining the budget, negotiating prices, and aiding in contract completion all play a role. For the homeowner, it’s about acquiring the highest quality for the lowest price.
Roles and Responsibilities of Modern Estimator in Construction
The duties of an Estimator encompass a wide range of responsibilities that are pivotal within the construction industry. An Estimator in construction holds a crucial role in the planning and financial evaluation of projects. Here’s a list of the responsibilities of an estimator:
- Understanding the client’s requirements.
- Investigating the expenses associated with materials, machinery, and labor.
- Collecting price estimates from subcontractors and suppliers.
- Evaluating project risks. Utilizing software tools to analyze company data, currency fluctuations, and pricing.
- Creating and delivering project quotations.
- Assisting in contract bids and aiding procurement efforts.
- Overseeing project phases to ensure cost adherence to projections.
Their primary task revolves around the assessment of the financial components associated with a construction endeavor, encompassing materials, labor, equipment, and other associated costs, all with the aim of delivering precise cost projections. An estimator in construction must stay updated on market dynamics and pricing variations to ensure that their estimates remain both current and competitive. In essence, the role of an Estimator in construction entails more than just numerical calculations; it involves informed decision-making that contributes to the successful execution of construction projects while adhering to budget constraints.
The Importance of Accurate Estimation
Construction relies heavily on accurate project estimates, but the challenge lies in the fact that construction estimating is neither quick nor straightforward. Nevertheless, it is of utmost importance for project managers, developers, and contractors to possess a strong grasp of construction estimating.
Lack of proper estimation makes it impossible to budget effectively and secure adequate financing to complete the project. Errors in estimating costs can disrupt an entire project, leading to numerous issues and additional expenses. To address this, we have compiled a comprehensive guide to construction estimating to equip project managers with the knowledge needed to execute precise estimates.
Determining the Estimator in Construction
The initial step in construction estimating is identifying the responsible party for creating estimates. This can vary depending on the project and the preferences of the project’s financier. Architectural and engineering firms typically employ in-house estimator in construction for all their projects.
Alternatively, an independent estimator in construction may be engaged by the owner or contractor. However, this person may provide an estimate covering only a portion of the total estimation, given the various factors involved in construction estimating, some of which can get lost in the shuffle, especially when information is conveyed through unsynchronized communication methods like WhatsApp.
A centralized platform, such as a smartphone app, for documenting details and estimates, and for keeping all stakeholders informed, serves as a solid starting point and enhances professionalism.
Consideration of Overheads
It is crucial to incorporate overhead costs when formulating cost estimates for a project by modern an estimator in construction. On large projects, general office expenses, including rent and clerical staff salaries, are incurred to ensure smooth operations. Additionally, running an office incurs various other costs. Permits, bonds, safety requirements, and compliance-related expenses are part of any construction project and should be included in the project’s overhead costs, as well as in contingency plans, whether for individual projects or the business as a whole.
Ensuring a clear understanding of the most substantial costs, particularly labor expenses, and compensating employees for their exact hours worked (neither more nor less), necessitates a reliable, highly accurate time clock system.
Upfront Costs
The initial expenses of a significant construction project can be substantial, often referred to as carrying costs since they are paid well before project completion payments. These costs should be discussed in pre-construction meetings and include material and labor expenses, which can be substantial, especially when scheduling errors occur. Accurate estimation of material requirements and labor hours is essential for cost estimator in construction. An underestimate in these costs can lead to a significant deficit at the project’s conclusion, complicating payment matters.
Utilizing Historical Data
A growing trend in construction estimating involves utilizing historical data to enhance accuracy. However, it is essential to recognize that no two buildings are identical. Therefore, simply replicating past projects may not suffice (particularly for new construction businesses). Nevertheless, if a project shares similarities with a previous building, historical data from that project can serve as a reference for the new project. It is crucial to consider factors such as location, real estate market fluctuations, material costs, and actual worker clock-in times, among other variables. Historical data serves as a guide but cannot provide definitive answers, yet an astute estimator in construction can leverage it to project current project costs.
Incorporating Profit
Profit is a crucial aspect of construction estimation that should never be overlooked. While there may be some flexibility in profit margins, they must be factored into the estimated project price. Some firms may attempt to reduce profit margins to submit a more competitive bid. However, quality construction companies should not compromise their worth.
Transparently communicating profit margins based on the estimate with partners ensures clarity and prevents corner-cutting later on, enabling employees to execute their work professionally and skillfully. Reducing costs, such as administrative tasks, through construction-friendly apps can also help increase profit.
In summary, accurate construction estimating is the linchpin of successful projects. By adopting best practices, leveraging technology, and maintaining professionalism in the proposal process, precise and competitive project estimates can be achieved.
Remember that reducing your expenses, such as by entrusting some of your administrative tasks to a construction-friendly app, can also lead to cost savings, consequently boosting your profits. Here are some quick ways to achieve this by a modern estimator in construction:
- Ensure precise payroll management to avoid overpayment for labor and unintentional rewards for irregular timekeeping.
- Implement a system where employees clock in and out only from the job site.
- Consider consulting with other construction companies, if comfortable, to gain insights into successful practices.
Navigating the Five Levels of Construction Estimating: From Concept to Bid
In the realm of construction estimating, it’s a common misconception that there’s just one definitive cost figure. In reality, there are various stages and cost levels involved in creating an estimate, with accuracy gradually improving across these five levels. It’s important to understand this process step by step:
1. Order of Magnitude
Typically, there is a preliminary estimate known as the order of magnitude, offering the project owner a broad range of potential costs, akin to a rough estimate. This helps the owner assess the project’s feasibility and worthiness, often based on similar projects in the area.
2. Schematic Design
Following the order of magnitude, the next stage in construction estimating is the schematic design estimate. This phase considers similar projects and properties in the vicinity, examining the square footage relative to other construction projects. As it’s still early in the process, there can be a margin of error of up to 20% for this estimate.
3. Design Development
Subsequent to the schematic design estimate, the project’s design is fully developed, leading to the design development estimate. At this point, it becomes easier to estimate the actual material costs, though meaningful changes to the project can still occur. The margin of error for the design development estimate is typically around 10%, making it the first true preliminary construction estimation.
4. Construction Document
By the time the construction document estimate stage is reached, there should be few, if any, variables left undecided. This is typically the stage right before substantial bids are submitted. Detailed drawings and specifications outline the project, leaving minimal room for adjustments. The contractor gains a clear understanding of the project’s objectives and its final appearance. The margin of error for the construction document estimate is usually around 5%.
5. Bid Estimate
The final step involves preparing a formal bid for the client based on the previous four stages. The bid estimate represents the project’s final estimated cost, considering all variables and specifications. While projects may not always proceed exactly as planned, bids should strive to be as close as possible to the actual project cost.
In addition to creating competitive bids, it’s crucial to communicate effectively when making a proposal. Providing detailed breakdowns and explanations in your proposal demonstrates thorough consideration of all aspects and specifications, even if your bid isn’t the lowest. Detail-oriented proposals that convey comprehensive coverage of the project enhance your chances of winning bids.
Maintaining professionalism throughout the process can be challenging, but an efficient solution is to use an all-in-one business and employee management app designed for the construction industry. Utilizing such an app, like Connecteam, streamlines operations, saves time locating documents, facilitates communication across all stakeholders in one centralized platform, and offers features such as real-time employee communication, precise labor cost estimation, and digital document distribution, including signatures. With a free-forever plan and a 14-day free trial for all paid plans, you can ensure your construction estimating process starts on the right foot.
Emerging Trends in Construction Estimation
Artificial Intelligence (AI) can enhance the efficiency of cost estimation processes. Machine learning algorithms play a pivotal role in recognizing patterns and facilitating predictive modeling. Natural language processing aids in extracting information from project documents. Automated data collection and processing contribute to more streamlined estimation procedures.
Improving Cost Management through Data Analytics
Data analytics has the potential to bolster effective cost management in construction projects. Real-time monitoring of project expenses and identification of budget variances. Discovery of opportunities for cost reduction and the formulation of risk mitigation strategies. Examination of cost performance indicators to enable proactive decision-making.
AI-Supported Cost Management Approaches
AI can support cost control initiatives, particularly within quantity surveying. Automated anomaly detection helps identify cost overruns or deviations. Predictive analytics assist in forecasting project expenses and optimizing resource allocation. Optimization algorithms facilitate cost-effective procurement and management of the supply chain.
Addressing Challenges and Constraints
The integration of data analytics and AI into cost estimation and control encounters various challenges and limitations. Issues related to data quality and accessibility must be addressed. Integration challenges with existing systems and processes need to be managed. Ethical considerations, including potential biases in AI algorithms, should be acknowledged.
Future Trends and Implications
Several emerging trends and future implications of data analytics and AI in quantity surveying are noteworthy. The increasing use of digital twins for real-time cost monitoring necessitates interdisciplinary collaboration. Advancements in predictive analytics offer construction professionals enhanced data analysis capabilities.
Ethical Aspects and Future Discourse
The ethical dimensions of data analytics and AI in quantity surveying, encompassing data privacy, bias, and transparency, warrant comprehensive exploration in forthcoming discussions. Highlighting the benefits and potential of data analytics and AI in cost estimation and control within quantity surveying. Emphasizing the importance of ongoing research, collaborative efforts, and ethical standards to maximize the value of these technologies in the construction industry.
Advanced Estimation Softwares
The reviews that follow assess estimating software products according to their features, product design, user experience, client feedback, support, and cost. For a thorough explanation of how we evaluated each product, please refer to the methodology section below.
1. STACK (Best for Estimating & Takeoff)
Although Estimator in Construction STACK is a fantastic option for takeoff software—indeed, it’s our #1 pick overall—there’s much more to this industry-leading tool than that. STACK is a very flexible and customizable estimating solution that includes automated tools that make it simple to create estimates and turn them into professional bid documents.
Advantages:
- Robust takeoff features seamlessly integrate with estimate and bid document creation.
- Flexibility in tailoring cost inputs and reporting to specific needs.
Disadvantages:
- Comes at a higher price point compared to some competitors.
- Customer support falls short of the level provided by certain other products.
STACK stands out as a cloud-based preconstruction software widely adopted by construction professionals across various trades. Its standout feature lies in the seamless synergy between Estimator in Construction STACK’s takeoff and estimating functionalities. STACK employs efficient automated tools such as autocounts, area measurement, and volume measurement for rapid and precise takeoffs. These takeoff insights can then be leveraged to generate comprehensive estimates, underscoring the strength of STACK’s estimating capabilities.
2. ProEst (Best Estimating Software Overall)
Established in 1976, ProEst boasts a lengthy history as a provider of construction estimating software. With a track record of collaborating with over 8,000 diverse construction firms, ProEst has harnessed its extensive experience to create one of the premier products in the industry. In 2021, Autodesk acquired ProEst, although it continues to operate as an independent solution.
Advantages:
- Possesses one of the most comprehensive built-in cost databases available in the market.
- Distinguishes itself through its remarkable flexibility and capacity for product customization.
- The annual pricing model offers the benefit of unlimited user licenses and data storage.
Disadvantages:
- Users have reported challenges in constructing custom assemblies from the ground up.
- Compared to many competitors, it comes at a higher price point.
ProEst caters to both subcontractors and contractors, offering a highly user-friendly interface that ranks among the most seamless experiences on this list. While ProEst effectively utilizes spreadsheets and tables, it doesn’t confine itself to an “Excel-based” approach often seen in estimating products. Furthermore, the software operates entirely in the cloud, ensuring compatibility with any laptop, tablet, or desktop computer with an internet connection.
3. Clear Estimates (Best Estimating Software for Small Contractors & Residential)
Clear Estimates stands out as a cost-effective yet potent web-based tool for an estimator in construction and proposal generation, tailor-made for residential contractors and remodelers. Developed by seasoned home remodeling professionals, it offers an intuitive user experience and streamlined workflow. With one of the most uncluttered interfaces among estimating tools, it is accessible from any device connected to the internet.
Advantages:
- Presents a modern and sleek user interface, a departure from the industry norm.
- Adopts a more budget-friendly pricing model compared to other remodeling estimation software.
Disadvantages:
- Lacks the extensive third-party integrations found in competing products.
- Certain functions, such as search and filtering, may benefit from enhancements.
While many estimating tools encompass various aspects of project management, Clear Estimates primarily focuses on the creation and management of precise estimates and professional proposals. However, concerning the realm of constructing accurate construction estimates, it offers a comprehensive feature set. Additionally, it seamlessly integrates with Buildertrend, a prominent project management tool, and Quickbooks, the widely used accounting software, simplifying the alignment of Clear Estimates with existing company workflows.
4. Sage Estimating (Best for Large Enterprises)
Sage Estimating, formerly part of the Sage Timberline suite, is tailored for construction contractors and businesses of varying sizes, with its primary purpose being the facilitation of precise bid creation and project estimates by utilizing data from takeoffs and BIM files. Nevertheless, its capabilities extend beyond these core functions, making it a versatile tool for an estimator in construction.
Advantages:
- Sage provides a comprehensive suite of construction applications, all seamlessly integrated.
- Sage boasts one of the most extensive feature sets available, making it an optimal choice for estimating in construction commercial projects.
Disadvantages:
- Not a cloud-based solution; requires local installation on a Windows-based system.
- Its modular pricing structure may result in a higher overall cost for a complete solution.
Even the most basic version of Sage Estimating enables basic takeoff, synchronization with a pricing database, and the generation of detailed estimates and customizable reports. The more advanced iterations of the software offer additional features such as access to the RSMeans cost database, the ability to construct estimates from 3D BIM models, and the generation of bill of materials (BOM) reports. While some users have noted that the interface may be less intuitive compared to certain other products on this list, this is partly attributed to the software’s remarkable flexibility and rich feature set.
5. Procore Estimating Software (Runner-Up)
Renowned for its specialization in estimator in construction project management software, Procore has recently broadened its portfolio through the acquisition of Esticom, a company specializing in takeoff and estimating solutions. This addition to Procore’s suite of offerings is particularly beneficial for contractors seeking a comprehensive solution within the Procore ecosystem.
Advantages:
- Seamlessly integrates with Procore’s construction management software, making it highly suitable for existing Procore clients.
- Encompasses takeoff and estimating functionalities.
- Procore provides exceptional training and customer support.
Disadvantages:
- Non-Procore users may find more cost-effective standalone alternatives.
Procore is a prominent name in the realm of estimator in construction software. While initially focused on project management software, Procore has significantly expanded its coverage across various facets of the construction lifecycle, including preconstruction, project execution, financial management, and analytics. For existing Procore users, the ability to centralize their work within Procore’s cloud-based platform, facilitating seamless document and data transfer between project stages, is a considerable advantage. Procore’s takeoff and estimating software offers all the standard features expected by users, but its standout feature lies in its seamless integration within the Procore environment.
6. simPRO Estimating Software (Runner-Up)
simPRO provides an extensive array of capabilities designed to cater to an estimator in construction, trade service, maintenance, and project contractors, regardless of their organization’s size. Whether the focus is on minor residential contracting or large-scale commercial development, simPRO’s online technology possesses the flexibility to adapt to your specific requirements. Originating in Australia in 2002, the company has established a commendable reputation among its clientele. A perusal of simPRO’s reviews predominantly reveals satisfied customers, earning top ratings from users spanning various business sizes and trades.
Advantages:
- Offers a comprehensive suite of field service management functions, encompassing estimating and invoicing.
- Recently introduced takeoff functionality.
Disadvantages:
- Estimating functionality falls short of the capabilities found in more comprehensive, dedicated estimating solutions.
- Customers must request a customized price quote, and there is no provision for a free trial.
simPRO is an online tool distinguished by its contemporary interface and a broad spectrum of construction management features. These features encompass project management, field service management, accounting, scheduling, and more. Tailored solutions are crafted for distinct specialties such as plumbing, HVAC, electrical, and others. Furthermore, simPRO’s suite of estimating features is highly commendable, featuring a personalized quote designer that automates customer data population, assembly pre-builds, and straightforward labor calculations.
7. ConEst (Best Electrical Estimating Software)
ConEst stands as the predominant choice for an estimator in construction, especially for electrical contractors seeking estimating software. Established in 1989, this company ranks among the most seasoned in the realm of estimating software providers. Remarkably, ConEst excels in customer service, earning a perfect 10 out of 10 rating. It has also cultivated a strong rapport with its clientele, evident in its A+ rating from the Better Business Bureau.
Advantages:
- ConEst’s extensive array of features for electrical takeoff and estimating solidifies its position as the premier electrical estimating software on the market.
- Distinguishing itself from most competitors, ConEst offers both cloud-based and desktop solutions.
Disadvantages:
- Pricing transparency is lacking, and there is no provision for a free trial.
- Additional fees are levied for installation, training, and support.
ConEst’s product portfolio comprehensively addresses the spectrum of needs for electrical contractors, encompassing electrical takeoff, estimating, bidding, and project management. The company offers a diverse range of products, including SureCount for takeoff, CE Cloud and Intellibid for estimating and bidding, and ConEst Electrical Formulas to enhance estimating capabilities within IntelliBid.
8. Buildertrend Estimating Software (Most Popular Estimating & Bidding Software)
Founded in 2007, Buildertrend has rapidly become one of the most widely used construction management platforms, boasting over 1 million users. This estimator in construction software caters to a diverse range of users, including homebuilders, remodelers, commercial developers, and specialty contractors of all scales. Buildertrend’s exceptional customer service plays a pivotal role in its widespread appeal.
Advantages:
- Provides a comprehensive suite of solutions encompassing both preconstruction and project management.
- Buildertrend stands out from its competitors due to its exceptional customer service.
- Flexible month-to-month pricing with a 30-day money-back guarantee.
Disadvantages:
- While offering robust features, Buildertrend’s set of estimating-specific tools is more limited compared to some dedicated estimating software products.
- There is room for improvement in terms of Quickbooks integration and tax calculations.
Buildertrend’s impressive range of products spans bidding, estimating, project management, field service, and more. While this review primarily focuses on its estimating capabilities, it’s worth noting the extensive array of features offered by Buildertrend, making it a viable choice for various construction software needs.
9. Buildxact (Best User Interface)
Buildxact is a remarkable software solution designed to cater to the construction management requirements of small contractors, earning its place among our top picks for estimating software. This software is particularly well-suited for residential builders, remodelers, and contractors in estimator in construction sector.
Advantages:
- Boasts an outstanding user interface.
- Encompasses features for takeoff, project management, and accounting software.
- Offers a complimentary 14-day trial of the software product.
Disadvantages:
- The software’s flexibility and customization options may not be as extensive as some other available estimating products.
- It lacks many of the third-party integrations commonly found in other estimating products.
Buildxact proudly claims that its estimating features can accelerate the process of creating accurate estimates by a factor of five compared to manual methods. With convenient features such as pre-built templates, price list imports, and intuitive in-built takeoff capabilities, Buildxact simplifies and streamlines the estimating process. Moreover, in addition to estimating, Buildxact provides tools for takeoff, project management, and scheduling, as well as construction accounting, rendering it a well-rounded product capable of addressing various essential functions in construction management.
10. SmartBid Software (Best Bid Management Software for General Contractors)
SmartBid stands as one of the most widely used online tools for contractor bid management estimator in construction currently available in the market. Established in 2006, it became part of ConstructConnect in 2018. SmartBid primarily focuses on assisting general contractors in maintaining their subcontractor database and effectively managing the submission of subcontractor bids for upcoming projects. Numerous reviews and testimonials found across the internet highlight SmartBid’s user-friendly nature.
Advantages:
- Exceptional organization and communication features tailored for subcontractors.
- The software interface is designed to be intuitive and relatively straightforward to grasp.
Disadvantages:
- Not equipped with takeoff or estimating functionalities; its capabilities are confined to its specific purpose.
SmartBid does not encompass the takeoff or estimating procedures but rather serves as a robust bid management tool exclusively crafted for general contractors. Among its multitude of features is the capacity to dispatch bid requests to subcontractors, maintain an extensive subcontractor database, facilitate the sharing of project-related documents, conduct comparisons of subcontractor bids, and monitor subcontractor compliance.
Their platform includes a portal that enables subcontractors to access vital documents and engage in information exchange with the general contractor. SmartBid users pay an annual licensing fee, with the tool’s pricing structure hinging on the number of users rather than the number of subcontractors granted access.
Risk Assessment in Estimation
Risks are unforeseen events that can result from a particular decision, and these risks can have either positive or negative outcomes, such as a product either not selling well or selling out completely. Regardless of the eventual outcome, it is crucial to be prepared for any potential risks that may arise in estimator in construction.
These risks can encompass various categories, including health and safety, quality of life, sustainability, finances, time, and reputation, among others. Managing these risks involves a process known as risk management, which entails examining the possible events that may occur as a consequence of your decisions in estimator in construction.
Once these risks are identified, the next step is to conduct risk estimation in the estimator in construction, which involves evaluating the extent to which these identified risks can impact the progress and goals of your project.
Key Terms in Risk Management:
- Risk Assessment: Risk assessment is a fundamental component of the risk management process, aiming to identify and analyze risks. The final stage of risk assessment is risk estimation, which assesses the potential impact of identified risks on your plans.
- Risk Tolerance: Risk tolerance refers to the level of risk that your team is willing to accept. It is influenced by various factors, including available resources, company culture, leadership, and more. For instance, the risk tolerance for hiring new employees may be higher for entry-level positions but lower for top-level managers.
- Risk Impact: Risk impact is a numerical rating indicating how much risk can affect projects and businesses. It is often categorized as low, medium, or high. Low-impact risks are affordable for the project, while high-impact risks may require significant resources to address if they can be addressed at all.
- Risk Probability: Risk probability refers to the likelihood of a risk occurring and can be rated as very low, low, medium, high, or very high. It can also be represented numerically, such as 1 in 100 for very low probability and more than 1 in 2 for very high probability.
Methods for Risk Estimation; to assess the potential impact of risks on your project, consider the following methods:
- Risk Exposure: Risk exposure quantifies what the project stands to lose or gain in the event of a negative or positive risk, respectively. It is calculated by multiplying the probability of occurrence by the value associated with that risk. For instance, if investing in new machinery generates an additional $150,000 in daily revenue with a 5% probability of issues, the risk exposure is $150,000 x 0.05 = $7,500.
- Probability-Impact Matrix: This method involves assessing the gravity of an issue and how severely it affects production. It considers the impact’s magnitude on project progress and production.
- Parametric Estimates: Parametric estimates are predefined values, probabilities, and formulas established by subject matter experts. These estimates are derived from extensive experimentation and statistical analysis and provide an accurate means of calculating risk once they are available.
Environmental and Sustainability Considerations
The increasing significance of factoring in environmental aspects and sustainability within construction estimation cannot be overstated. With the world facing pressing environmental issues, the construction industry is under growing scrutiny due to its substantial ecological footprint. Here are several pivotal reasons elucidating why the inclusion of environmental and sustainability considerations in construction estimation is of utmost importance:
- Adhering to Regulations: Governments worldwide are enforcing stricter environmental laws and building standards to curtail carbon emissions, endorse energy efficiency, and safeguard natural resources. Failing to incorporate these regulations in estimates for construction can result in costly project delays, penalties, or even project cancellations.
- Financial Savings: Sustainable construction practices, such as designs emphasizing energy efficiency, utilization of renewable energy sources, and reduction of material wastage, can translate into substantial long-term cost savings. An estimator in construction who integrates these factors can pinpoint opportunities for cost-effective sustainable solutions.
- Reputation and Market Demand: Clients and investors now give precedence to environmentally conscious construction projects. Neglecting sustainability considerations in estimates can tarnish a company’s standing and competitiveness in the marketplace.
- Risk Management: Risks associated with climate change, such as extreme weather events and resource scarcity, can disrupt construction projects and lead to unanticipated expenses. An estimator in construction must evaluate these risks and incorporate resilience measures into their estimates.
- Lifecycle Assessment: Sustainable construction estimation entails taking into account a project’s entire lifecycle, encompassing construction, operation, and eventual demolition. This comprehensive approach ensures that long-term environmental repercussions are minimized.
- Technological Advancements: Progress in green building technologies and eco-friendly materials is rendering sustainable construction more cost-effective and attainable. An estimator in construction who remains updated about these innovations can offer clients state-of-the-art solutions.
- Ethical Responsibility: Ethical considerations play a pivotal role in today’s construction sector. Companies that demonstrate a commitment to environmental responsibility are more likely to attract clients, investors, and a skilled workforce.
In summary, the integration of environmental aspects and sustainability into construction estimation is indispensable for conformity, financial savings, reputation enhancement, risk mitigation, technological advancement, and upholding ethical accountability. An Estimator in construction who embraces sustainability is better equipped to excel in an evolving construction landscape and contribute to a more sustainable future.
Challenges and Roadblocks for an Estimator in Construction
Estimation and tendering play vital roles in the construction sector, involving the precise assessment of project expenses and the acquisition of contracts. Technological advancements have introduced bid estimating software and online construction estimating tools to streamline these procedures. Nevertheless, numerous challenges persist.
This article examines six common issues encountered in tendering and estimating, particularly in tender cost estimation, and discusses their impact on the construction industry. Additionally, it explores how bid estimating software and online construction estimating solutions can help mitigate some of these challenges.
- Lack of Accurate Data for Tendering and Estimating: A primary hurdle in tendering and estimating is the availability of accurate and dependable data. An estimator in construction heavily relies on historical cost data to create precise project estimates. However, obtaining comprehensive and up-to-date data can prove to be a daunting task. The absence of reliable data can result in inaccurate tender cost estimates, potentially affecting project profitability. Bid estimating software and online construction estimating tools can address this challenge by offering access to historical construction cost data and industry benchmarks.
- Complexity of Construction Projects: Modern construction projects have grown increasingly intricate, making tendering and estimating more intricate as well. With complex designs, advanced technologies, and multiple trades involved, predicting costs accurately becomes challenging. An estimator in construction needs to account for various factors, including labor, materials, equipment, and subcontractor expenses. Bid estimating software and online construction estimating tools can assist in managing project complexity by automating calculations, providing standardized templates, and facilitating collaboration among project stakeholders.
- Time Constraints in Tendering and Estimating: The tendering process often imposes strict deadlines on an estimator in construction. Meeting these deadlines while creating accurate cost estimates can be demanding, particularly for large or complex projects. Bid estimating software offers time-saving features such as pre-built cost libraries, customizable templates, and automated calculations. These tools enable the estimator in construction to streamline their workflows and enhance efficiency, ultimately enabling them to meet project deadlines more effectively.
- Cost Fluctuations and Estimating Accuracy: The construction industry faces significant challenges in ensuring the accuracy of tender cost estimation due to cost fluctuations. Material prices, labor rates, and subcontractor costs can vary considerably over time. An estimator in construction must account for market conditions and anticipate future price changes to produce precise cost estimates. Bid estimating software and online construction estimating solutions empower an estimator in construction to adjust for cost fluctuations during the tendering process and make bid modifications to enhance the accuracy of their estimates.
- Limited Integration of Technology in Tendering and Estimating: While bid estimating software and online construction estimating tools offer substantial advantages, the construction sector encounters difficulties in fully integrating these technologies into the tendering and estimating workflow. Many companies continue to rely on traditional methods like Excel spreadsheets and exhibit reluctance to adopt digital solutions. Promoting industry-wide adoption of these tools can enhance collaboration, data accuracy, and productivity in the realm of tendering and estimating.
- Competitive Bidding Environment and Estimation: The construction industry operates within a highly competitive bidding environment, necessitating contractors to develop cost estimates that are both precise and competitive. An estimator in construction must strike a balance between offering competitive pricing and ensuring profitability. Bid estimating software and online construction estimating solutions provide features such as cost analysis, benchmarking, and insights into competitive pricing. These tools enable an estimator in construction to make well-informed decisions and formulate estimates that are competitive while also financially sound.
The construction sector tendering and estimating, including the work of an estimator in construction, encounter a number of difficulties, such as the lack of accurate historical data, the difficulty of the project, time restraints, cost swings, a lack of technological integration, and a competitive bidding environment that is competitive.
By supporting competitive pricing strategies, simplifying access to precise and historical data, optimizing workflows, and enhancing estimation accuracy, bid estimating software and online construction estimating software can address some of these issues. The construction sector may improve the effectiveness and profitability of the tendering and estimating process by utilizing these technologies and embracing digital solutions.
Conclusion
In this comprehensive exploration of contemporary construction estimation, we have embarked on a deep dive into the vital role fulfilled by an estimator in construction. An estimator in construction, often underappreciated, bears the crucial responsibility of ensuring that project costs are meticulously forecasted and effectively managed. They form the cornerstone upon which the triumphant execution of construction ventures is founded.
To elucidate the intricacies of construction estimation, we meticulously examined the intricate steps entailed in producing precise project cost forecasts. Commencing with a comprehensive understanding of client requisites and extending to the meticulous assessment of costs linked with materials, machinery, labor, and overhead, an estimator in construction plays an indispensable part in preserving project budgets and timelines.
The roles and responsibilities of the modern estimator in construction are all-encompassing, necessitating a profound grasp of financial elements. They grapple with factors including materials, labor, equipment, overhead, and market dynamics, all while delivering precise cost projections. The estimator in construction shoulders the responsibility of guaranteeing that projects remain financially feasible while adhering to budgetary limitations.
Construction estimation transcends being a mere numerical exercise; it constitutes a pivotal function that determines the prosperity of construction undertakings. An estimator in construction occupies the vanguard of this pivotal endeavor, applying their proficiency to ensure that projects are finalized within budgetary confines and as per predefined schedules.
Suggested articles to read:
How To Reduce Construction Cost; 11 Tips
Top 7 Cost Saving Technologies in Construction
Resources:
Digital Builder | Modern Estimation | WillMott Dixon | Connect Team |Smart Sheet | Build X Act | BSS | Randstad | Cedreo | Datamyte | Let’s Build | Construction PM | Raken | Ganttpro | Medium | Construction Coverage | Project Management | ConWise
For all the pictures: Freepik | Unsplash
