Construction Estimating Software is computer software designed for contractors to
estimate construction costs for a specific project. An estimator will typically use estimating software
to estimate their bid price for a project, which will ultimately
become part of a resulting construction contract. Some architects, engineers,
construction managers, and others may also use estimating software to prepare
cost estimates for purposes other than bidding.
History
Traditional methods
Construction contractors usually prepare bids or tenders to
compete for a contract award for a project. To prepare the bid, first a cost
estimate is prepared to determine the costs and then establish the
price(s). This involves reviewing the project's plans and specifications to
produce a take off or quantity survey, which is a listing of all the
materials and items of work required for a construction project by the
construction documents. Together with prices for these components, the measured
quantities are the basis for calculation of the direct cost. Indirect costs and
profit are added to arrive at a total amount.
Spreadsheets
Estimators used columnar sheets of paper to organize the
take off and the estimate itself into rows of items and columns containing the
description, quantity and the pricing components. Some of these were similar to
accounting ledger paper. They became known as green sheets or spreadsheets.
With the advent of computers in business, estimators began
using spreadsheet
applications like VisiCalc, Lotus 1-2-3, and Microsoft
Excel to duplicate the traditional tabular format, while automating
redundant mathematical formulas.
Many construction cost estimators (over 55%) continue to
rely primarily upon manual methods, hard copy documents, and/or electronic
spreadsheets such as Microsoft Excel. While spreadsheets are relatively easy to
master and provide a means to create and report a construction cost estimate
and or cost models, their benefit comes largely from their ability to partially
relieve estimators of mundane calculations. Accuracy, however, is not
necessarily improved and productivity is not maximized. For example, data entry
remains tedious and prone to error, formula errors are common, and
collaboration and information sharing are limited.
Commercial estimating software
As more and more estimators came to rely on spreadsheets,
and the formulas within the spreadsheets became more complex, spreadsheet
errors became more frequent. These were typically formula errors and
cell-reference errors. A benefit in using commercial estimating software is the
hard-coded formulas in these applications which were originally created to
overcome these errors. Other benefits include the use of reference databases for
costs and other data, predictable and professional looking reports, speed,
accuracy, and process standardization. As these applications became more and
more popular over the years, additional features, such as saving data for reuse
and trade-specific calculations, have become available.
For example, programs that are designed for building
construction, include libraries and program features for traditional builders.
In sharp contrast, programs that are designed for civil
construction, include libraries and program features for roadway, utility,
and bridge builders. In some instances, applications are provided without
included resource databases. This requires that the user develop their own
resource library; including discipline-specific resources (as an example: for
civil infrastructure, mining, mechanical and electrical).
Sophisticated, Cost estimating and Efficient Project
Delivery Software systems are also available to integrate various construction
delivery methods such as Integrated Project Delivery, Job Order Contracting,
and others (IDIQ, JOC, SABER...) simultaneously and securely. These newer Cost
estimating and Efficient Project Delivery Software systems, enable estimators and
project managers to collaboratively work with multiple projects, multiple
estimates, and multiple contracts. A 'short list' of additional capabilities
includes the ability to work with multiple cost books/guides/UPBs, track
project status, automatically compare estimates, easily copy/paste, clone, and
reuse estimates, integrated sophisticated visual estimating and quantity
take-off (QTO) tools, including pattern search, automatically link
specifications to estimates .... Owners, Contractors, and AEs are moving to
advanced cost estimating and management systems, and many oversight groups such
are beginning to require their use. The level of collaboration, transparency,
and information re-use enabled by Cost Estimating and Efficient Project
Delivery Software drives 15-25%+ reductions in procurement cycles, six to ten
times faster estimating, reduce overall project times, as a significant
reduction in change orders and the virtual elimination of contract related
legal disputes.
Typical features
Estimating Software Block Diagram
Three functions prove to be the most critical when buying
cost estimating software:
- Takeoff software - this provides for measurement from paper or electronic plans
- Built-in cost databases - this provides reference cost data which may be your own or may come from a commercial source, such as RS Means
- Estimating worksheets - these are the spreadsheets where the real work takes place, supported by calculations and other features
Other typical features include:
- Item or Activity List: All estimating software applications will include a main project window that outlines the various items or activities that will be required to complete the specified project. More advanced programs are capable of breaking an item up into sub-tasks, or sub-levels. An outline view of all of the top-level and sub-level items provides a quick and easy way to view and navigate through the project.
- Resource Costs: Resources consist of labor, equipment, materials, subcontractors, trucking, and any other cost detail items. Labor and equipment costs are internal crew costs, whereas all other resource costs are received from vendors, such as material suppliers, subcontractors, and trucking companies. Labor costs are usually calculated from wages, benefits, burden, and workers compensation. Equipment costs are calculated from purchase price, taxes, fuel consumption, and other operating expenses.
- Item or Activity Detail: The detail to each item includes all of the resources required to complete each activity, as well as their associated costs. Production rates will automatically determine required crew costs.
- Calculations: Most estimating programs have built-in calculations ranging from simple length, area, and volume calculations to complex industry-specific calculations, such as electrical calculations, utility trench calculations, and earthwork cut and fill calculations.
- Markups: Every program will allow for cost mark-ups ranging from flat overall mark-ups to resource-specific mark-ups, mark-ups for general administrative costs, and bonding costs.
- Detailed Overhead: Indirect costs, such as permits, fees, and any other overall project costs can be spread to billable project items.
- Closeout Window: Many estimating programs include a screen for manually adjusting bid prices from their calculated values.
- Reporting: Project reports typically include proposals, detail reports, cost breakdown reports, and various charts and graphs.
- Exporting: Most software programs can export project data to other applications, such as spreadsheets, accounting software, and project management software.
- Job History: Storing past projects is a standard feature in most estimating programs.
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