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Construction Estimating Software Study
Go to any national convention and you can't miss seeing dozens of software vendors. It is a big business and there is high value to construction firms. The product has made estimating a less clerical and more automated. Also, it has made estimating more efficient. Due to its power, counting and measuring is less of a task; taking hours instead of days. For those of us who don't looking forward to the job of estimating, computers and software has made it bearable.
We feel that most estimating software is very useful for contractors. However, I have personally witnessed software purchased one day and then never used. The salesman did his job. The rub is the time it takes to be proficient. The contractor's busy schedule doesn't allow for training. In several cases I know of, thousands of dollars has been invested and no payoff. The software sits in its shrink wrap still unopened.
I am raising a red flag. Take a look at all the risk in construction, some of it we choose. Buying estimating software (decreasing our cash) and never benefiting should not be one of our risk factors.
We recommend looking hard at Microsoft. (See our writing on "Computers".) If you use a computer, you can use the Microsoft Office Suite (90% of users do) and especially Excel. For any one just starting to use computers, the advent of the point and click system also known as Windows, makes it all the more easy.
As proof of our conclusion, The American Society of Professional Estimators released a survey in 2005. Here is the background and the results:
Respondents were asked if their satisfaction level with their current estimating software.
Satisfied 80%
Fairly Satisfied 14%
Dissatisfied/Plan to Change 3%
Other/n/a 2%
Respondents were asked if they anticipate change soon (one year or less)
No change planned 93%
Plan to change soon 7%
Respondents were asked the major factor in the purchase of their estimating software.
Ease of use 30%
Customization 30%
Features 25%
Price 4%
Other/n/a 11%
Average time in use
1-5 years 32%
5-10 years 47%
10+ years 21%
For the rest of this chapter, read my book, Managing a Construction Firm on Just 24 Hours a Day (McGraw Hill, 2007, 406 pages). To order our book, go to any major outlet i.e. Amazon, Walden Books, Barnes and Noble, Reiter's. Brown's Stationers (UK), Borders, Booktopia (AUS) and other fine book retailers. You may order the bundle of book, 50 MS Excel Templates (featured in the book) and 55 e-classes at www.stevensci.com - click on the book image.
See our 150+ Best Practice Analysis and Library. It is an assessment for contractors seeking better ways of managing their contracting business. See our E-Store link below. 50+ page report and listing of 150+ Best Practices is included.
Read McGraw Hill's 400+ page book . "Managing a Construction Firm on Just 24 Hours a Day". It includes 170 Best Practices Used in Construction Contracting with over 100 illustrations and examples. We include a CD of 60 Excel Templates when you buy the book from our website. We also include our library of forms and 5 online courses.
The book is available for immediate shipment. We do take international orders.
See our secure Miva / EarthLink / Card Services International E-Store: http://stevensci.com/Merchant2/merchant.mvc?Screen=SFNT&Store_Code=SCII
Look for our new book, "The New Business Model of Construction Contracting" in 2007..
Matt Stevens is a management advisor who works only with construction contractors. He has performed training and business consultation for the contracting community since 1994. Matt can be reached at mstevens@stevensci.com.">mstevens@stevensci.com.
search terms: Pre-construction, post-mortem, lessons learned, Construction Estimating Software, Estimate Costs, Pricing, Bidding Work, Market
Posted by Matt Stevens at July 28, 2009 2:57 AM