Construction Estimating Software

What is construction estimating software?

Construction estimating software enables general contractors, builders, and construction professionals to estimate project costs by automating the calculation of material quantities, labor costs, equipment expenses, contractor fees, and other project-related expenses. It uses a centralized pricing database to estimate the total cost of a construction project based on factors such as location, minimum wage, and material cost. The estimates can be customized per changing project parameters such as scope or timeline.

Construction estimating software analyzes project blueprints and drawings to create the material takeoff—i.e., a detailed list of all the materials and quantities needed for a construction project. Material takeoffs help estimate construction costs and create procurement lists, ensuring the right materials and quantities are ordered. Most construction estimating tools include customizable templates for creating clear estimates and professional-looking proposals, and reporting and analytics functionality to monitor project progress.

What are the core features of construction estimating software?

• Job costing: Track the cost of various components associated with a construction project or job, including material, labor, equipment, and overhead. This feature also identifies cost overruns by comparing actual project expenses against estimated costs.

• Cost database: Maintain a database of construction cost estimates, including material, labor, and equipment rates. This database can be automatically or manually updated based on changing industry or local conditions. Automatic cost databases draw data from external databases or pricing indices, such as the Producer Price Index (PPI) or Construction Cost Index (CCI), for real-time or periodic updates.

• Proposal generation: Create project proposals that include details such as the cost breakdown and project timeline. You can add custom logos, fonts, and colors to the proposals to reflect your brand identity.

What are the benefits of construction estimating software?

• Enhances data integrity: Construction estimating solutions help maintain data integrity by centralizing project information in a database, including material, labor, machinery, and other project-related costs. This data is automatically updated based on industry standards. Additionally, built-in data validation checks ensure accurate estimates by eliminating errors and inconsistencies and increasing data accuracy.

• Saves time: By automating repetitive tasks and providing access to pre-built templates and cost databases, construction estimating software reduces the time required to generate project estimates. This lets you allocate more time to strategic tasks such as analyzing project requirements, identifying cost-saving opportunities, and refining project plans.

• Optimizes project costs: Construction management software optimizes project costs by providing insights into cost breakdowns and identifying cost drivers. It facilitates value engineering, which aims to improve a project’s overall value by optimizing its functions while also reducing costs. By leveraging historical data, market trends, and real-time pricing information, the software enables you to make informed decisions to optimize material selections, general contractor agreements, and resource allocations. This proactive approach to cost management helps minimize budget overruns, improve project profitability, and enhance overall project outcomes.

What are the potential issues with construction estimating software?

• Limited customization options: Some construction estimating software solutions may restrict your ability to customize estimation templates, reports, or formulas, which could be a drawback if you have specific project requirements or unique pricing structures. Limited customization may also restrict your ability to tailor the software to your project workflow preferences or incorporate specialized cost items, potentially leading to inefficiencies or inaccuracies in estimating. 

• Lack of integration: Integration issues can arise if your shortlisted construction estimating software fails to integrate with your organization’s current tools or systems, such as accounting or enterprise resource planning (ERP) software. Lack of integration can result in data silos, manual data transfer tasks, and compatibility issues between different construction software platforms. Consequently, you may encounter inefficiencies in managing construction finances, discrepancies in financial reporting, or an increased risk of errors when attempting to synchronize project data across systems.

• Outdated pricing data: Construction estimate software relies on up-to-date pricing data to generate accurate estimates. However, outdated data can undermine the reliability and accuracy of estimates, leading to potential budget overruns or pricing discrepancies in project bids. Factors such as fluctuating material costs, labor cost rates, and market conditions may also contribute to the obsolescence of pricing data over time.

How much does construction estimating software cost?

Most construction estimating software products on the market are priced on a “per user, per month” basis, and their entry-level pricing plans range from $19 to $499+.* An enterprise tool that’s priced higher may include additional features such as detailed estimates, document management, residential construction estimates, premium support options, advanced customization options, accounting integration, and advanced reporting and analytics.

*The pricing included is for the entry-level/lowest-priced offerings found on vendor websites as of Feb. 21, 2024.

What is construction estimating software used for?

A construction estimating tool helps standardize the estimation process by providing accurate cost projections and material quantities, facilitating budgeting and forecasting for construction projects. However, this software can have multiple use cases based on the data you feed into the system and the software features available.

• Construction project management and scheduling: Construction management software aids project planning and scheduling by providing detailed cost breakdowns and resource allocation forecasts. You can leverage this data to create realistic project timelines and schedules based on anticipated construction costs and resource availability, ensuring efficient project execution and timely completion.

• Risk management: Construction estimating software supports risk management efforts by identifying potential cost overruns, budget variances, and other financial risks associated with construction projects. By conducting thorough cost estimations and scenario analysis, you can assess project risks more effectively and implement mitigation strategies to minimize their impact on project outcomes.

• Value engineering: Construction estimating software facilitates value engineering by analyzing cost implications and performance trade-offs associated with different design and construction alternatives. By identifying cost-saving opportunities, material substitutions, and efficiency improvements, the software helps optimize the project value without compromising quality or functionality. This, in turn, assists in maximizing the return on investment and aligning project objectives with client expectations.

Which tools integrate with construction estimating software?

Construction estimation software integrates with various tools to simplify project management and enhance collaboration between different teams. We looked at thousands of reviews from users of construction estimating software to identify products that users frequently mention integrating with their construction estimating tools:

• QuickBooks Online is an accounting tool that integrates with construction estimating software to synchronize project costs, expenses, and invoices. Its integration ensures accurate financial tracking and simplifies the invoicing and payment process for construction projects.

• Microsoft Excel is a spreadsheet tool that integrates with construction estimating software to import and export project data, perform complex calculations, and generate custom reports. This integration allows you to leverage Excel’s advanced analysis capabilities to conduct in-depth financial analysis, cost comparisons, and scenario modeling.

• Xero is another accounting software that integrates with construction estimating software to automate financial processes, manage project budgets, and track expenses in real time. Its integration enables you to simplify accounting tasks and gain actionable insights into project profitability and financial performance.

• Google Calendar is a scheduling and time management tool that integrates with construction estimating software to coordinate project timelines and schedule tasks. Google Calendar integration facilitates better communication and collaboration among your project team by providing visibility into project milestones and deadlines.

• Deputy is a workforce management tool that integrates with construction estimating software to schedule labor resources, track employee time and attendance, and manage payroll. Its integration ensures optimal resource utilization as well as compliance with labor regulations.

*We identified these integrations mentioned most often in verified reviews of construction estimating software published on GetApp within the past two years (as of Feb. 21, 2024).

Considerations when purchasing construction estimating software

• Check the construction estimation method used. Different software tools use different estimation methods to determine the total construction budget. These methods can include unit cost estimating, assembly-based estimating, total quantity takeoff, historical data analysis, and parametric modeling. Before finalizing a software solution, ensure it can accommodate your preferred approach and provides the necessary tools and functionalities to create accurate and clear estimates. The estimating method’s accuracy, data sources, and adaptability to project phases are a few other factors to evaluate.

• Assess bid management capabilities. This evaluation will help you determine the software solution’s effectiveness in managing the bidding process—from soliciting bids and subcontractor quotes to analyzing bids and preparing comprehensive bid packages. Consider features such as bid tracking, bid comparison tools, general contractor and subcontractor management, and automated bid document generation to simplify the bidding workflow and improve bid accuracy and competitiveness. Additionally, check if the software lets you track and maintain a database of requests for proposal (RFPs) and requests for quotation (RFQs) for future reference. 

• Evaluate reporting functionality. The software should let you extract actionable insights from project data and communicate key information to stakeholders, helping you make informed decisions and optimize project outcomes. Look for features such as customizable reporting templates, real-time dashboards, graphical data visualization, and the ability to generate detailed cost breakdowns, variance analyses, and project performance reports.

Source

Products evaluated for the pricing calculation were taken from GetApp’s construction estimating software directory. The pricing ranges exclude freemium versions of the products. The features highlighted were identified based on their relevance and the percentage of products in GetApp’s directory that offer them.

Disclaimer: This construction estimating software buyers guide was authored by GetApp's content team. We develop our guides using the author’s expertise, insights from 2M+ unique user reviews, and our proprietary data science algorithms to identify trends in user sentiment, preferences, and priorities. Some text was generated with assistance from AI tools.