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Estimating costs is vital in the construction business. You have to get the numbers just right. Overestimate a project, and you might end up losing the lead or bid to competitors. If you underquote or underbid a project, you’ll lose money on the job instead of turning a profit. 

Either way, your business loses. 

It’s easy to get cost estimates wrong. Most projects have way too many costing variables, some outside your control. Identifying all the cost factors is hard enough, let alone budgeting for them. 

Plus, striking that perfect balance between affordability and profitability can prove tricky. It’s especially challenging for small contracting firms. 

So what do you do—hire someone to figure out cost estimates? No, that would be too expensive and impractical. 

Fortunately, there’s a simpler way to accurately estimate costs for quotes and bids. Digitize the costing process with contractor estimate software. 

This article explains the role and advantages of cost estimation software. It also explores some popular estimating programs for construction. And that’s not all; we’ll share pro tips for choosing the right estimating software. 

Let’s dive in. 

What Are Estimating Programs for Construction? 

Contractor with blueprints, calculator, and tablet

Estimating programs for construction, or contractor estimate software, are digital tools that streamline and automate the process of calculating costs for construction projects. The program helps construction professionals prepare accurate, effective, competitive bids and quotes for new jobs. 

These tools eliminate erroneous and tedious manual work in estimating costs. Say goodbye to your pen and paper, calculators, and spreadsheets when crunching the numbers. With a construction estimator, you won’t waste time guessing or doing complex math. 

Estimating software comes with some or all of the following features and capabilities: 

  • Digital takeoff 

A cost estimate starts with determining what’s needed to complete the project. Digital takeoff does just that. It tallies the required types and quantities of materials. Most systems do this by simply analyzing a project’s blueprints, drawings, or 3D models. 

  • Cost database 

The software cross-references costs from a pre-built database of known construction overheads. Thanks to this database, the software can accurately calculate the cost of materials and labor needed for any project. 

RELATED ARTICLE — Overhead Costs: Examples, Definition, and Types 

  • Cost analytics 

This feature gives you a detailed analysis of estimated costs. It puts accurate figures against labor, material, and equipment expenses. Also, it helps you optimize the final value by playing around with variables like pricing, profit margins, and labor rates. 

  • Bid templates 

After summing everything up, the software helps you prepare a winning bid or quote. You can customize dozens or hundreds of built-in templates to create a detailed, professional-looking bid/quote. These can then be sent via email or printed out. 

  • E-signature 

This feature allows clients to sign estimates digitally. They can do so in person or online. E-signatures are convenient and help speed up the approval process. 

  • Project management 

Some estimators feature useful project management tools. You can have a dashboard that tracks schedules, supplies, progress, spending, and payments. 

  • Integration 

Construction costing software is designed to integrate with other digital systems seamlessly. Imagine an estimator linked to your ERP system, project management tools, and bookkeeping software. That would seriously streamline project planning and business management. 

Estimating software is a quantity surveyor, accountant, and project manager all rolled into one. It fills all these roles in your construction business. As a small firm with only a few employees, the software is a welcome alternative to otherwise prohibitively expensive talent. 

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The Role of Construction Takeoff in Estimating 

Construction takeoff is crucial in estimating project costs. It’s the process of listing all the materials needed for a project, along with their respective quantities and prices. This is the very foundation of accurate cost estimations. 

Material costs usually take up the bulk of construction budgets. These costs typically range between 30-40% of the total expenditure. So takeoff has a heavy bearing on the final cost estimates. 

But accurate construction takeoff isn’t easy. In a survey, contractors reported that costing materials was one of the hardest parts of calculating reliable estimates. 

That’s true; takeoff is hard, especially when done manually. But why run the numbers by hand? Automate the costing process and get accurate figures with digital tools. 

RELATED ARTICLE — How to Make an Estimate for Construction (in 7 Steps) 

6 Advantages of Construction Estimator Software 

Foreman with laptop at construction site

Wondering what contractor estimate software can do for your business? Well, here are the top six advantages of digital estimation over manual methods: 

More Accurate Budgeting 

About 65% of construction projects go over budget. Only a shocking 8.5% of projects are completed both on time and within budget. 

Cost overruns mainly stem from poor budgets. And poor budgeting starts with unrealistic bids or quotes. There are, of course, the usual culprits too, like inflation and supply chain issues. 

In any case, accuracy is key when bidding on a construction project. Contractor estimate software unifies multiple data points to give you accurate cost insights and figures. You can analyze individual costs down to the nearest cent. 

Such accurate estimates enable you to draft a reliable budget that sees the project through. 

Faster Bids and Quotes 

Doing takeoffs and cost analysis manually takes a while. Depending on the project, estimation can take hours, days, or even weeks. Crunching numbers on paper can be tedious too. 

Construction estimation software saves you long hours of endless paperwork and math. These systems can generate accurate estimates in a matter of minutes. 

Quick estimates mean faster bids and quotes. This enables you to send more bids, increasing your chances of winning more jobs. And clients don’t have to wait around for cost figures. 

Streamlined Procurement Processes 

Estimating software helps automate many of the workflows associated with sourcing and purchasing materials. For instance, the software can: 

  • Outline materials, supplies, and equipment needs 
  • Provide real-time information on materials availability and costs 
  • Generate purchase orders 
  • Calculate material quantities accurately to minimize wastage 
  • Plan material deliveries for every construction stage 
  • Track materials usage and inventory 

Time and Cost-Saving Opportunities 

Estimating software saves you time and money in more ways than one. In addition to faster bids, digital estimates streamline your entire project management approach. 

For example, you don’t need a project manager or quantity surveyor. The software empowers even your small team to tackle massive construction projects. That alone saves you the nearly $100,000 you’d have to pay a project manager every year. 

Easier Collaboration 

Using estimating software leads to better collaboration. Through the platform, you can collaborate with team members, partners, subcontractors, and clients in real time. Such collaboration increases productivity and transparency in construction projects. 

Enhanced Project Management 

Digital estimates enhance nearly every aspect of project management. You can apply data and insights from the software to simplify construction logistics, such as: 

  • Materials procurement 
  • Crew management 
  • Scheduling 
  • Cash flow management 
  • Project economics 
  • Documentation 
  • Billing and invoicing 

RELATED ARTICLE — How to Write an Invoice for Construction Work (with Free Template) 

Common Mistakes to Avoid When Choosing a Program 

There are numerous construction estimator options to choose from. However, not just any software is right for your small business. 

So how do you choose the best? Here’s what not to do when picking estimation software for your small construction business: 

Overpaying for Tools Built for Large Enterprises 

Some estimating software is specially built for big contracting firms. These are companies with large crews handling massive projects. 

Such software will still work with your firm. But you’ll be wasting money on advanced features you don’t really need. Choose a product designed for small contractors. 

Choosing Software That’s Too Complicated for a Small Crew 

Estimating software should make life easier for you and your crew. Software that’s too complicated defeats that purpose. And it can cost you valuable time and resources in user training. 

Go for a cost estimator that’s intuitive and easy to use. Give each candidate a thorough trial run first to see how quickly your crew can learn to use it. 

Not Checking if It Works on Both Desktop and Mobile 

Most business software applications run perfectly on desktop. But you need one that works on mobile too. 

A portable software can be run from anywhere and on any supported device. You can prepare quotes and bids on the go or on-site using just your smartphone. 

Rushing to Make a Decision 

Choosing a cost-estimating software is not an easy decision. It must not be rushed. 

Take your time to research the available options. Try some of them out too—test how well they sit with your crew and business. Don’t decide until you’ve reviewed or sampled all the choices at your disposal. 

Fixating on Just the Price 

Premium estimation software comes with a fee. Vendors typically charge users a subscription. Some of these fees will seem fairly affordable, while others might seem expensive. 

You’ll want to consider other factors besides the price tag, such as functionality, reliability, and usability. Try to justify the price by asking these three questions: 

  1. What exactly am I paying for? 
  2. Does the software have all the features I need? 
  3. What sort of return can I expect from investing in the software? 

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      Top 5 Construction Estimating Software Options 

      Contractors shaking hands

      Here’s a list of the best estimating programs for construction: 

      STACK 

      STACK is a popular cloud-based construction takeoff and estimating software for small and medium-sized contractors looking for a simple, easy-to-use estimation solution. The software features customizable project templates, an extensive cost database, virtual collaboration tools, and more. 

      Prices start at $2,999 per year for a single-user account. 

      Key features: 

      • Free trial for 7 days 
      • Easy-to-use modern interface 
      • Customizable subscription package 

      Before you decide: Know that STACK has a restricted editor, complex setup process and customization, and limited integration support. 

      Procore 

      Procore is among the best-known construction project management solutions. The platform is clad in a clean, easy-to-use interface packed full of essential features. Its features include AI takeoff tools, a dynamic cost editor, and an estimate-to-budget converter. 

      Prices are modeled on a per-user basis. 

      Key features: 

      • Extensive support for third-party integration 
      • Rich ecosystem of project management tools 
      • 14-day free trial 

      Before you decide: Keep in mind that the custom pricing model means you must request a quote. Procore can be pricy, and there’s a rather steep learning curve for new users. 

      Joist 

      Joist is a powerful all-in-one digital solution for small to medium-sized contractor businesses looking for estimating software tailored to their industry.  

      The software gives you quick, accurate estimates, e-signatures, customizable estimate templates, and other cost-planning capabilities. It’s best for businesses that need to create and send estimates on the spot. Plus, you can also invoice, get paid, and manage clients all within the same app. 

      Prices start at $80 per year for the Basics plan. 

      Key features: 

      • Competitive pricing 
      • Strong user support 
      • Intuitive, easy-to-use interface 

      Before you decide: Get to know Joist’s tiered pricing structure: Joist Basics, Joist Pro, and Joist Elite. Not all plans include access to all features.  

      ProEst 

      Now an Autodesk company, ProEst offers a robust cloud-based contractor estimate solution. It gives you a multilayered cost database, bid day analysis, and a built-in CRM, among other unique capabilities. 

      ProEst and a few other preconstruction tools are bundled together in a single offering. That bundle is priced under a custom monthly/annual subscription. 

      Key features: 

      • Powerful analytics and reporting 
      • Quick implementation and onboarding 
      • Several additional features and capabilities 

      Before you decide: You must contact Autodesk to request a price. Prices could start as high as $5,000 and may include features you don’t need. 

      PlanSwift 

      Launched in 2007, PlanSwift has become a popular takeoff and estimating choice for contractors in various industries. It has an intuitive design featuring a simple drag-and-drop interface. The drag-and-drop tool lets you create assemblies and takeoff items easily and quickly. 

      An annual PlanSwift subscription costs $2,000. 

      Key features: 

      • Free demo/trial upon request 
      • Subscription includes support and two hours of user training 
      • Customizable formulas for calculating material costs 

      Before you decide: Be aware PlanSwift can be a bit complex for beginners. You may also find limited live technical support and a limited editor. 

      FROM ONE OF OUR PARTNERS — The 8 Best Construction Estimating Software Solutions 

      5 Pro Tips for Choosing the Right Software for Your Business 

      Ready to digitize your takeoff and estimation processes? Follow these five tips to get started on estimating software: 

      • Determine the features you want in a construction estimator. 
      • Research the software solutions available to you. 
      • Ask for software recommendations from other contractors. 
      • Try different estimator software applications before making your choice. 
      • Pick the right software based on functionality, performance, and ease of use.