The contractor estimating process is a profitable place for contractors to focus on when it comes to software upgrades. These upgrades bring tools that reduce the time it takes to formulate estimates and work to improve their accuracy. Saving time and increasing profitability are good reasons for contractors to upgrade the estimating process.
Automated Tools for Contractor Estimating
Contractors can input specific data or use pre-populated data based on industry-specific options to get job estimates with maximum accuracy. If bids are accepted, compiled information is transferred over automatically to the business management software, for instance from Sage Timberline Estimating to Sage 100 Contractor.
Standardized bids across multiple estimators help contractors create bids with industry-specific databases for 30 plus industries with Sage Estimating.
Essentially, automation tools work to reduce manual entry, while calculating complex factors using set rules. Contractors can spend less time inputting numbers and more time understanding what the numbers mean.
Profitability from Precise Estimations
An article found on Construction Business Owner, called: “The Top 10 Construction Estimating Mistakes”, explains:
“The reality is that when contractors lose money, the loss is most often borne out of the cost-estimation process.”
Many of the 10 mistakes highlighted in the article could be avoided or mitigated by upgrading estimating software. For instance:
– “underestimating labor costs
– last minute changes
– lack of transparency
– lack of margin calculation algorithms
– lack of successive risk estimation”
Improving the bottom-line is key for business growth, which is why focusing on where the biggest losses are coming from is vital. Contractors may do excellent work, yet if their estimating process isn’t efficient, their profit margins will suffer. Focusing on improving the estimating process will result in higher profit margins and fewer “mistakes.”
Handling Multiple Bids at Once
Contractors also need estimating software tools to help them manage multiple bids at once. This includes standardized controls, automated databases, integrated sharing with enterprise business systems, saved data sets, and enhanced delivery to clients.
With a central dashboard interface, contractors can access and manage multiple bids with organizational efficiency. Time saved from using upgraded functions will expand their ability to take on more bids at once, accelerating and expanding workflow capabilities.
Mitigating Risk from Bid Losses
The risk contractors take when estimating a bid is underbidding and losing profit. This can be a significant risk, as the article explains:
“The ideal scenario is that a construction business owner can gauge profitability before the project even gets underway. Otherwise, you’re not only losing money on jobs; you’re putting your business at risk.”
Upgrading contractor estimating tools with sophisticated software solutions mitigates risk from losses. The more accurate the estimation, the more profitable and risk-free the project will be.
Final proposals can be delivered with confidence when contractors can quickly generate accurate estimates using automated controls. Streamlined pricing adjustments and conceptual estimating tools will help them stay flexible throughout the project’s life-cycle. As the article points out:
“Often, it’s not until a project is complete that one determines its profitability. And profitability at the time of completion can vary significantly from expectations at the time of the bid.”
Contractor estimating doesn’t have to be such as gamble; contractors at all levels have access to estimating software that will streamline this integral business process. Many times, it’s the inefficiencies of the contractor estimating process that cause loss and risk for contractors. By upgrading this process, contractors will save time, mitigate risk, and increase profit.
The most popular estimating software solution for contractors in North America is Sage Timberline Estimating, which works in conjunction with Sage 100 or Sage 300 business management solutions. Upgrading this commonly inefficient process will give contractors the tools to effectively use estimating to their advantage. If interested in learning more please contact us today.