To every business, there’s a lifecycle. For construction companies, your business lifecycle starts with the cost estimate. As the starting point for all construction jobs, the cost estimate has a direct impact on everything that will follow. An estimate that is clear, concise, accurate (as can be), and on time will have a direct effect on everything that follows or does not.
Construction projects can be quite complex and costly, depending on the size and nature of the build and they’re always difficult to calculate. However, it’s vital to be able to provide good estimates to clients as this will convey professionalism and put them at ease. The cost estimate is also the piece of paper upon which your relationship with the client is founded. An estimate that is, as stated above, clear, concise, accurate, and on-time will set in motion a long term working relationship. Unless you’re a subcontractor estimating for a commercial construction build. In that case, just make sure your estimate is the cheapest.
Remember that the key to cost estimation all starts with understanding all of the different costs and categories. For instance, the two most significant cost types are direct and indirect costs. Direct costs typically include team wages, fuel for equipment, and so on. Whereas, indirect costs usually include security costs, utilities, and so on. What other categories do costs come from? There is labor, material, equipment, services, software, hardware, facilities, and contingency costs. All of the expenses we just listed, in addition to all of the direct and indirect costs, are collected to make a “basis of estimate” report.
What Are Construction Cost Estimating Apps?
Put simply, construction cost estimating software is computer software designed specifically for contractors to predict how much a construction project will cost, what materials they need, and how much of it they need to order. There are certain differences between construction cost estimating software. Some are designed specifically for costs and measurements of various metals, while others are designed specifically to deal with the financial side of the business too. How do you know which one is right for you? We did the leg work for you and checked dozens of providers that can help you align costs and send out professional invoices.
Why Do I Need Cost Estimation Apps (And Why Now)?
Welcome to 2020, where customers want quotes and estimates – and they want it now. While you’re taking out your measuring tape, and fiddling with the calculations at the office on a spreadsheet, some other carpenter, architect, or builder has whipped out an app and given your client a quote on the spot. I know that it may seem like some unnecessary bells and whistles and “if it ain’t broke don’t fix it” but don’t underestimate the importance of the Wow Factor. It could be what sets you apart and what helps you get the stick out in a sea of hard hats. Not to mention, it will actually save you time and money. If you haven’t yet, it’s time to embrace technology and be able to provide accurate calculations and costs. Some apps are free, while others charge a monthly or yearly fee. It’s important to compare costs and functions to choose the one that’s best for you and your business.
How To Choose The Construction Estimating Software That’s Right For You
Cost is not the only factor to consider when choosing the right app. It’s important to define what needs this system will serve and what functions it must perform to enable you to do your job. Every business has its own needs and requirements but here’s what you should factor in to narrow your decision:
Ease of use: Downloading a tool that you don’t understand or can’t use is not a good fit, that’s just obvious. If you’re not the only one accessing it, make sure that your employees or other team members know how it functions.
Compatibility and integration: This app may need to integrate with other systems of your business. Consider what your app needs to gel with and plan accordingly.
Compliance and regulations: Think about your industry and what rules and regulations it needs to follow. Does this app accommodate this or is it not suitable when it comes to your industry’s standards? Can it even help improve your regulatory compliance while reducing the costs you incur along the way?!