How Does Construction Estimating Software Work?

The purpose of construction estimating software

Construction estimating software is a computer program that allows contractors to develop detailed cost estimates and construction plans. The software is particularly useful for contractors when submitting bids for projects because the program helps determine precise estimates, which can be used to submit the lowest bid for the project.
Construction estimating software can be used to factor in virtually any cost that could affect the price of a job. It can calculate labor, materials, permit fees, disposal costs, energy charges and any operational overhead.
Construction estimating software can also be used to determine how much material is needed for a job. For example, if a heating installer is adding baseboard heat to an existing room in a house, the software can calculate the amount of baseboard and piping needed based on an input of the room size and the projected amount of heat loss.

Using the software

The actual use of construction estimating software varies, depending on the program. But in general, the user selects a project from a list of options and inputs data. The available list includes new construction, remodeling, plumbing, electrical, roofing and exterior siding, among others.
For example, if a contractor is building an addition onto a house, he would select that option and enter information about the project.
The dimensions of the addition--as wellas the type of foundation, floor, walls, exterior, ceiling and roof--would be entered in the software, which would then determine the amount of each material that is needed. The contractor can then enter data on the costs of each material, and the software will compute the cost.
The software can also include estimates for labor, as well of that for any subcontractors, in addition to permit fees and other costs to arrive at a final estimate.

Other features of the software

Most editions of construction estimating software have scheduling tools that can help plan the contractor's schedule and help line up subcontractors or inspectors to ensure they are appropriately timed and there is no lost time.
The software also has an allowance for contractor overhead when computing the final estimate. This allows the contractor to determine what expenses he will incur during the project, such as gas to run a generator, allowing him to put together a precise estimate.
Some advanced versions of the software can download material costs from building websites, eliminating the need for the contractor to input them. This helps ensure the most accurate material price and estimate.
Construction estimating software is costly and is usually limited to larger contracting firms. Smaller companies can benefit from it, though--particularly the materials calculator, which allows them to reduce over-buying and wasting materials.