Construction Estimating Software
Encyclopedia
Construction estimating software is computer software
designed for contractors to estimate construction costs for a specific project. An estimator
will typically use estimating software to estimate their bid price
for a project, which will ultimately become part of a resulting construction contract. Some architects and engineers may also use estimating software, but usually only to provide a budgetary cost estimate to an owner prior to construction.
and costs for every aspect of construction. There are many ways to estimate with so many different programs. These resource costs include labor
, equipment
, materials, subcontractors, and any other related costs.
applications like VisiCalc
, Lotus 1-2-3
, and Microsoft Excel
to duplicate the traditional tabular format, while automating redundant mathematical formulas.
As the popularity of spreadsheets has grown, exchanges are starting to appear where professional estimators can buy or sell construction estimating spreadsheets that they have created.
applications were originally created to overcome these errors. As these applications became more and more popular over the years, additional features, such as saving data for reuse and trade-specific calculations, have become available.
Many of these software applications are specific to different construction markets, such as commercial drywall, residential building, remodeling, masonry, electrical, and heavy construction. For example, programs like On Center Software's On-Screen Takeoff, Quick Bid and Digital Production Control, Sage
Timberline Office, JetStream and Goldenseal that are designed for building
construction, include libraries and program features for traditional builders. In sharp contrast, programs like BID2WIN Estimating & Bidding, KUBUS, Cleopatra Enterprise, HCSS HeavyBid, Candy Project Control and SharpeSoft Estimator, that are designed for civil construction
, include libraries and program features for roadway, utility, and bridge builders. In some instances, applications are provided without included resource databases. This requires that the user develop their own resource library; including discipline-specific resources (as an example: for civil infrastructure, mining, mechanical and electrical).
Many of the larger construction contractors in the Australian market use commercial products such as ‘Expert Estimation by Pronamics Pty Ltd or in-house applications such as the Leighton Holdings Group’s program ‘CATS’, which is used by Thiess, Leighton Contractors, and John Holland.
Applications such as CATS and Expert Estimation are unit rate or first principles estimating tools and generally offer a greater level of flexibility for combined discipline projects (projects containing a mix of pipeline, civil, and structural as an example).
Like most other business applications
, estimating programs typically run on Microsoft Windows
-based computers, but some, such as Turtlesoft Goldenseal, will also run on Macintosh
computers.
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Application software
Application software, also known as an application or an "app", is computer software designed to help the user to perform specific tasks. Examples include enterprise software, accounting software, office suites, graphics software and media players. Many application programs deal principally with...
designed for contractors to estimate construction costs for a specific project. An estimator
Building estimator
A building estimator is an individual that quantifies the materials and labor needed to complete a construction. Building estimating can concern diverse forms of construction from residential properties to hi-rise and civil works...
will typically use estimating software to estimate their bid price
Construction bidding
Construction bidding is the process of submitting a proposal to undertake, or manage the undertaking of a construction project. The process starts with a construction estimate from blueprints and take offs....
for a project, which will ultimately become part of a resulting construction contract. Some architects and engineers may also use estimating software, but usually only to provide a budgetary cost estimate to an owner prior to construction.
Traditional methods
Contractors review a project's plans and specifications to produce a takeoff (a list of item and material quantities needed for the project). This is traditionally done by analyzing the project plans and, utilizing knowledge of required construction methods, producing an itemized list of the project requirements. Then, based on this list, a contractor will tabulate the various resourcesResource (project management)
In project management terminology, resources are required to carry out the project tasks. They can be people, equipment, facilities, funding, or anything else capable of definition required for the completion of a project activity. The lack of a resource will therefore be a constraint on the...
and costs for every aspect of construction. There are many ways to estimate with so many different programs. These resource costs include labor
Construction worker
A construction worker or builder is a professional, tradesman, or labourer who directly participates in the physical construction of infrastructure.-Construction trades:...
, equipment
Construction Equipment
Construction Equipment is a trade publication and web site serving the information needs of construction contractors, materials producers, and other owners and operators of construction equipment....
, materials, subcontractors, and any other related costs.
Spreadsheets
With the advent of computers in business, contractors began using spreadsheetSpreadsheet
A spreadsheet is a computer application that simulates a paper accounting worksheet. It displays multiple cells usually in a two-dimensional matrix or grid consisting of rows and columns. Each cell contains alphanumeric text, numeric values or formulas...
applications like VisiCalc
VisiCalc
VisiCalc was the first spreadsheet program available for personal computers. It is often considered the application that turned the microcomputer from a hobby for computer enthusiasts into a serious business tool...
, Lotus 1-2-3
Lotus 1-2-3
Lotus 1-2-3 is a spreadsheet program from Lotus Software . It was the IBM PC's first "killer application"; its huge popularity in the mid-1980s contributed significantly to the success of the IBM PC in the corporate environment.-Beginnings:...
, and Microsoft Excel
Microsoft Excel
Microsoft Excel is a proprietary commercial spreadsheet application written and distributed by Microsoft for Microsoft Windows and Mac OS X. It features calculation, graphing tools, pivot tables, and a macro programming language called Visual Basic for Applications...
to duplicate the traditional tabular format, while automating redundant mathematical formulas.
As the popularity of spreadsheets has grown, exchanges are starting to appear where professional estimators can buy or sell construction estimating spreadsheets that they have created.
Database applications
As more and more contractors came to rely on spreadsheets, and the formulas within the spreadsheets became more complex, spreadsheet errors became more frequent. These were typically formula errors and cell-reference errors. Hard-coded formulas in databaseDatabase
A database is an organized collection of data for one or more purposes, usually in digital form. The data are typically organized to model relevant aspects of reality , in a way that supports processes requiring this information...
applications were originally created to overcome these errors. As these applications became more and more popular over the years, additional features, such as saving data for reuse and trade-specific calculations, have become available.
Many of these software applications are specific to different construction markets, such as commercial drywall, residential building, remodeling, masonry, electrical, and heavy construction. For example, programs like On Center Software's On-Screen Takeoff, Quick Bid and Digital Production Control, Sage
The Sage Group
The Sage Group plc , commonly known as Sage, is a global enterprise software company headquartered in Newcastle upon Tyne, United Kingdom. It is the world's third-largest supplier of enterprise resource planning software , the largest supplier to small businesses, and has 6.1 million customers...
Timberline Office, JetStream and Goldenseal that are designed for building
Building
In architecture, construction, engineering, real estate development and technology the word building may refer to one of the following:...
construction, include libraries and program features for traditional builders. In sharp contrast, programs like BID2WIN Estimating & Bidding, KUBUS, Cleopatra Enterprise, HCSS HeavyBid, Candy Project Control and SharpeSoft Estimator, that are designed for civil construction
Civil engineering
Civil engineering is a professional engineering discipline that deals with the design, construction, and maintenance of the physical and naturally built environment, including works like roads, bridges, canals, dams, and buildings...
, include libraries and program features for roadway, utility, and bridge builders. In some instances, applications are provided without included resource databases. This requires that the user develop their own resource library; including discipline-specific resources (as an example: for civil infrastructure, mining, mechanical and electrical).
Many of the larger construction contractors in the Australian market use commercial products such as ‘Expert Estimation by Pronamics Pty Ltd or in-house applications such as the Leighton Holdings Group’s program ‘CATS’, which is used by Thiess, Leighton Contractors, and John Holland.
Applications such as CATS and Expert Estimation are unit rate or first principles estimating tools and generally offer a greater level of flexibility for combined discipline projects (projects containing a mix of pipeline, civil, and structural as an example).
Like most other business applications
Business software
This article is about software made for business, if you were looking for the business of selling software, see Software business.Business software is generally any software program that helps a business increase productivity or measure their productivity...
, estimating programs typically run on Microsoft Windows
Microsoft Windows
Microsoft Windows is a series of operating systems produced by Microsoft.Microsoft introduced an operating environment named Windows on November 20, 1985 as an add-on to MS-DOS in response to the growing interest in graphical user interfaces . Microsoft Windows came to dominate the world's personal...
-based computers, but some, such as Turtlesoft Goldenseal, will also run on Macintosh
Macintosh
The Macintosh , or Mac, is a series of several lines of personal computers designed, developed, and marketed by Apple Inc. The first Macintosh was introduced by Apple's then-chairman Steve Jobs on January 24, 1984; it was the first commercially successful personal computer to feature a mouse and a...
computers.
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Typical features
- Item or Activity List: All estimating software applications will include a main project window that outlines the various items or activities that will be required to complete the specified project. More advanced programs are capable of breaking an item up into sub-tasks, or sub-levels. An outline view of all of the top-level and sub-level items provides a quick and easy way to view and navigate through the project.
- Resource Costs: Resources consist of labor, equipment, materials, subcontractors, trucking, and any other cost detail items. Labor and equipment costs are internal crew costs, whereas all other resource costs are received from vendors, such as material suppliers, subcontractors, and trucking companies. Labor costs are usually calculated from wages, benefitsEmployee benefitEmployee benefits and benefits in kind are various non-wage compensations provided to employees in addition to their normal wages or salaries...
, burdenOverhead (business)In business, overhead or overhead expense refers to an ongoing expense of operating a business...
, and workers compensation. Equipment costs are calculated from purchase price, taxes, fuel consumption, and other operating expenses. - Item or Activity Detail: The detail to each item includes all of the resources required to complete each activity, as well as their associated costs. Production ratesDuration (project management)Duration of a project's terminal element is the number of calendar periods it takes from the time the execution of element starts to the moment it is completed.Do not confuse duration with work. E.g...
will automatically determine required crew costs. - Calculations: Most estimating programs have built-in calculations ranging from simple length, area, and volume calculations to complex industry-specific calculations, such as electricalElectrical wiringElectrical wiring in general refers to insulated conductors used to carry electricity, and associated devices. This article describes general aspects of electrical wiring as used to provide power in buildings and structures, commonly referred to as building wiring. This article is intended to...
calculations, utility trenchTrenchA trench is a type of excavation or depression in the ground. Trenches are generally defined by being deeper than they are wide , and by being narrow compared to their length ....
calculations, and earthwork cut and fillCut and fillIn earthmoving, cut and fill is the process of constructing a railway, road or canal whereby the amount of material from cuts roughly matches the amount of fill needed to make nearby embankments, so minimizing the amount of construction labor...
calculations. - Markups: Every program will allow for cost mark-ups ranging from flat overall mark-ups to resource-specific mark-ups, mark-ups for general administrative costs, and bondingPerformance bondA performance bond is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor.A job requiring a payment & performance bond will usually require a bid bond, to bid the job...
costs. - Detailed Overhead: Indirect costsIndirect costsIndirect costs are costs that are not directly accountable to a cost object . Indirect costs may be either fixed or variable. Indirect costs include taxes, administration, personnel and security costs, and are also known as overhead.There are two types of Indirect Costs...
, such as permits, fees, and any other overall project costs can be spread to billable project items. - Closeout Window: Many estimating programs include a screen for manually adjusting bid prices from their calculated values.
- Reporting: Project reports typically include proposalsProposal (business)A business proposal is a written offer from a seller to a prospective buyer.Business proposals are often a key step in the complex sales process—i.e., whenever a buyer considers more than price in a purchase.-Overview:...
, detail reports, cost breakdown reports, and various charts and graphs. - Exporting: Most software programs can export project data to other applications, such as spreadsheets, accounting softwareAccounting softwareAccounting software is application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It functions as an accounting information system...
, and project management softwareProject management softwareProject management software is a term covering many types of software, including estimation and planning, scheduling, cost control and budget management, resource allocation, collaboration software, communication, quality management and documentation or administration systems, which are used to...
. - Job History: Storing past projects is a standard feature in most estimating programs.