Estimating in Building Construction

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5–1 Overview


During the last 20 years, computers have revolutionized esti-
mating. With the advent of cheap personal computers, easy-
to-use spreadsheet software, and specialized estimating
software, the computer now takes a central role in the esti-
mating process. With a portable computer, a portable printer,
and a mobile Internet connection, an estimator can visit a
client’s office or home, review the project’s requirements,
access the company’s database and estimating software, and,
for simple jobs, give the client a typewritten estimate before
leaving. The same estimator can return to the office, down-
load a set of plans, perform the estimate, and e-mail a pro-
posal to a client without using a single piece of paper.
If an estimator is to survive in today’s competitive work
environment, they must be computer savvy. Even old-time
estimators have had to learn to use computers to remain
competitive. In this chapter, we will look at how computers
are being used in the estimating process. The purpose is to
give the reader an overview of the types of software available,
not to teach them how to use the software.


5–2 BENEFITS AND


DANGERS OF COMPUTERIZED


ESTIMATING


Computerized estimating offers many benefits to the estima-
tor. When set up and used properly, computerized estimating
can increase the efficiency of the estimating process. The fol-
lowing are some of the benefits of computerized estimating:



  1. Computerized estimating can reduce calculation errors,
    which gives the estimator a more accurate cost for the
    project. This reduces the number of unprofitable jobs
    that are won because the job was inadvertently priced
    too cheap or jobs that are lost because the job was
    priced too high due to a computation error.
    2. Computerized estimating increases the speed at which
    the estimate is prepared by performing the math that
    the estimator would have to do. This gives the estimator
    more time to focus on the critical aspects of the estimate
    (such as getting better pricing) and improving the qual-
    ity of the estimate. It may also allow the estimator time
    to prepare more estimates, thus reducing the estimating
    cost to the company.
    3. Many computerized estimating packages allow the esti-
    mator to track where the quantities came from. This is
    important when the estimator needs to answer questions
    about the estimate to the client or company’s field per-
    sonnel many months after the estimate was prepared.
    4. Computerized estimating allows the estimator to
    quickly change a price or a productivity rate and get an
    instantaneous change in the project’s cost. This allows
    the estimator to easily make last-minute price adjust-
    ments or to see how missing the target productivity
    would change the profitability of a job.
    Alternately, if used incorrectly or carelessly, computer-
    ized estimating can cause many problems and generate
    many incorrect estimates. An inaccurate equation entered
    into a spreadsheet or specialized estimating software pack-
    age can create errors in multiple estimates before it is found.
    There are two key dangers to avoid when using computer-
    ized estimating.
    The first danger is to turn the thinking over to the com-
    puter, making the estimator nothing more than a data-entry
    person. Computers are very good at performing repetitive,
    mundane tasks, such as mathematical calculations. They can
    even be taught to make simple decisions, such as selecting
    the correct equation to use based on a response to a simple
    question. But the computer cannot think for the estimator.
    Computerized estimating is a tool, just like a calculator, to be
    used by the estimator to help her prepare the estimate. When
    the estimating program retrieves pricing or productivity


COMPUTERS IN ESTIMATING


CHAPTERFIVE

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