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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:
- 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