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Recent economic conditions have encouraged people in every industry to look for smarter ways to work that will increase profitability. Contractors, in an attempt to combat the economy and increased competition, are looking to estimating software as a method of increasing productivity without driving up overhead. By Richard Langedyk
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With several players in the estimating software game, many contractors feel overwhelmed by the options in front of them. Uncertainty in what to look for in an estimating system might cause you to be frustrated, avoid purchasing a software system, or–worse yet–purchase a system that does not fit your needs or business. But by knowing what to consider and look for before you talk to a sales representative, you can make sure you get the right estimating software for your company. Present and Future Perhaps the first question you should ask yourself is "What do I need from estimating software right now?" This question should be immediately followed by "What will I need next year?" Think about your present estimating process, and then think about what you could be doing in the future. Be sure that any estimating system you buy addresses present needs and is flexible enough for future demands. For example, even if you currently employ one estimator, you should look for software that is network-ready. This will allow for easy expansion of your estimating system when you're ready to hire more estimators. It Must Improve Productivity Investing in the right estimating software should improve your speed, accuracy, and information quality. Generating more estimates–faster and with fewer mistakes–is a sure bet for increasing productivity. Oftentimes, if project information is difficult to come by, a contractor will "wing it," with poor results. Any estimating software you consider should also provide accurate and detailed project information, so you have the data you need to correctly analyze projects and make better decisions. With the ability to bid on twice as many jobs each month, you'll have a better chance of winning twice as many jobs. Labor costs for creating each bid will decrease. (Those labor costs can total $3,000–or more–per bid.) Improved accuracy reduces the time spent fixing bid errors and virtually eliminates unpleasant surprises on the job site. It Should Be Easy to Use If you can't figure out how to use the software, there's no way it can help your estimating process. Estimating software that's too complicated or frustrating to use might offset any gains in speed or accuracy and could actually decrease your productivity. Database configuration or the ability to run a specific report might be the primary feature you're looking for in an estimating system, but once purchased, no feature will make a difference if you can't use it. It Shouldn't End With the Sale To get the most out of your system, you should consider access to training and purchase from a company that offers several forms of training. Video training and training via Internet sessions will allow you to learn at your own pace and at a time that's convenient for you. In-classroom training provides the opportunity to learn and explore the software through a real-life estimating situation in a small-group setting. Some companies also offer private training for in-depth, one-on-one instruction at a price. But it shouldn't end with training either. The company you purchase from should demonstrate complete commitment to you by offering outstanding customer and technical support, as well as other benefits and services, to ensure your system is always up and running. It Should Be Made by Experts One commonality between the software industry and the construction industry is that they are both very complex and technical. However, few software manufacturers understand both fields, resulting in many products that either are poorly designed or lack the key features most contractors require in an estimating system. Look for a software system with industry-leading design and programming. Demand a system that's made by people with intimate knowledge of the construction industry. Buy from a company with expertise in both software and construction. Don't Let Price Be the Determining Factor As with any tool or equipment purchase, cost is certainly a factor you must consider. But more important is the suitability of the equipment for the job you have in mind. You wouldn't buy equipment that couldn't handle a job–even if it was cheaper. So why make that compromise with your estimating software? Let's assume that the average life span of an estimating system is about three years. If price is the one thing holding you back, consider what your return on investment will likely be over those three years. Spending a few thousand dollars today in return for doubled or tripled profits over the next few years is a deal no contractor would turn down. Purchase the Software That's Right for You Purchasing estimating software doesn't have to be intimidating. Look for software that's flexible and easy to use. Purchase from a company that understands the software business and the construction business and that offers training and support after the sale. Remember that price shouldn't be the determining factor. Considering these things before you purchase will result in an estimating software system that makes sense for your business, productivity, and profitability. Richard Langedyk is director of the Construction Estimating Institute, www.estimating.org, based in Sarasota, FL.
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