Why Building Estimating Softwares are Replacing Inaccurate Construction Cost Estimating?

As digital transformation continues to roll through the construction industry, the day of building estimating software has come.

As per recent research, digital transformation cuts costs by 6-8% while improving the productivity of construction by 14-15%.

With construction firms needing to become more flexible and agile to keep up with rapid market changes, many businesses have begun to outsource their required services and departments to attain the critical level of flexibility needed to be successful in a competitive market. This may include marketing, accounting, and, in many cases, the building estimating software.

Why Building Estimating Softwares are Replacing Cost Estimating?

Traditional construction cost estimating is an inexact science, which is being replaced by greater levels of accuracy by building estimating software. This is because construction cost estimating accuracy varies at a range of points – from wild ballpark figures at the beginning to precise measurements when the project is about to get complete. That level of inaccuracy is one of the reasons why contractors often survive from project to project without a great deal to cushion the blow of one bad project. Though change orders and additions are common in building construction projects, this level of inaccuracy leads to serious problems for contractors who don’t have enough resources to see them through hard times.

You Need Alternatives to an In-House Building Estimating Department:

When you’re running a construction firm, hiring an in-house estimator or setting up an in-house building estimating department can become expensive to remain sustainable, especially in today’s high-growth market conditions. This high cost adds to the business’ overhead without bringing any profit until the projects are estimated and completed at a good profit rate. However, when you’re not completing projects, you’re still expected to pay for the things that have been tied up in your building estimating department. Also, when a project ends up being more expensive than estimated, you have no choice but to eat the loss, in the hope to keep the business operating successfully through the next project to turn profitable.

How to Avoid the Building Cost Estimating Software Trap?

When you begin working with Building estimating software, there is a long learning curve before it is of any use. If not the major focus, it’s easy to miss those areas where you can economize, like creating streamlined workflows for specific situations or setting up pre-determined assemblies. In several situations, it felt as though you have an IT degree to navigate the software and spend extra time keeping up with the changes to the software. If the pricing database is not updated, your prices may be incorrect from the very beginning, which may require careful checking and multiple cross-checking to make sure you’re putting the best possible, but still correct and accurate, prices while estimating.

The Benefits of Using Building Estimating Software:

Here are are the top five benefits of using Building estimating software as an alternative:

  • Eliminate Overhead that Cuts into Profit Margins.
  • Win More Bids with Fast, Accurate Estimates.
  • Eliminate Headaches and Wasted Time.
  • Save Money by Increasing Margins.
  • Grow Your Business.

Instead of spending time trying to keep an in-house building estimating team working effectively and efficiently, you’re only paying estimators who are working with building estimating software and who know how to optimize the workflow for the time they’re actually on your project. This can save your company a lot of expense that is being wasted in your current setup, allowing you to invest that in other places where your company needs funding to grow.

If you’re ready to take the next step towards using independent building estimating software, Coding Brains can help. Please feel free to contact us today with your questions about our effective construction estimating services.

Written By
Faiz Akhtar
Faiz Akhtar
Faiz is the Technical Content Writer for our company. He interacts with multiple different development teams in Coding Brains and writes amazing articles about new technology segments company is working on. Every now and then he interviews our clients and prepares video & audio feedback and case studies.