Submitted by: David Kraft
Construction is a business, and the purpose of business is to make a profit. Whether or not the building project makes a profit can be decided before the first nail is driven or the first piece of lumber is cut. It all starts out with an estimate.
To the average builder without Construction Management Software, the builder meets with the client. For a large project they may meet in an office to review blueprints and a proposal, usually typed rather than word processed, and a budgetary quote. For a small job it’s a clipboard and a sketchpad. For a large project by larger builders, the builder goes through a lot of time-consuming work. Checking contingencies, adding material labor and materials based on estimates and experience. The more detailed the work, the more accurate the estimate.
Smaller contractors on smaller projects may just use industry averages such as cost per square foot, average cost of materials such as lumber, wire and wallboard; safer, but the profit is not maximized. With proper guesswork or experience, the builder gets a profitable job. Guess wrong and you’re just changing moneyor worse
The solution is estimating software. This is a form of construction software that as the name implies is specific to the estimating process. This software takes the tedious work out of the estimating process by breaking the estimate into discreet pieces. Then the data
is input in a logical structured fashion. This logical input also ensures that details are not missed – the kind of details that become cost overruns frequently.
The output is an accurate quote with which the builder can then bid the job low enough to get it, but high enough to maximize profits.
Estimating software is also useful if the builder gets an initial rejection. With a manual system, the builder needs to look at the project piece by piece to make a good counter offer. Of course in many cases, the alternate course is finding some quick ways to cut corners.
With construction software or estimating software, the builder can go through the project running through menus and sections. The information is presented in a more useful fashion and usually with a nearly instant cost update. The builder can now “cut corners” in a manner that may not even be perceived by the customer as cutting corners, since the software will allow more subtle changes.
The added bonus is also that large or small, estimating software allows the process to proceeds with less actual labor. After all a builders business is producing building, not producing estimates. Without construction management software, a large business will need the additional labor of one or more estimators. With a small business, the principal is either estimating or working.
The use of construction management software, particularly estimating software can get the builder off to a good start by producing good estimates. Estimates that are profitable keep companies in business and allow the builders to do what they do best – build.
About the Author: David Kraft is a freelance author that writes about numerous subjects. He is very knowledgeable about
construction accounting
software and writes tips for business owners looking for advice in selecting their next
construction management software
package.
Source:
isnare.com
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