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Gelsey Nov 9, 2022 1:35:03 PM 1 minute read

The manual estimation process is killing your profit margin

What if you could win more bids without overwhelming your estimators?

No, this isn’t some pipe dream. It’s becoming more of a reality with the help of software and the construction industry’s progress toward digital transformation.

And there’s research to back this up. 

The McKinsey Global Institute reports that digital transformation in the construction industry can result in productivity gains of 14-16% and cost reductions of 4-6%.

When it comes to digitizing the estimation process, the numbers are just as promising, with digital takeoffs reporting to be 80% faster than traditional pen and paper. 

Done manually or digitally, estimating a job takes time and costs money. So why not choose the option that gives your business the best opportunity to win more bids without burning out your skilled estimators?

We crunched the numbers to compare the cost of manually estimating projects versus the cost of digitizing the estimation process. Here’s what we found and what you should take away from these numbers:

  • Digitizing the estimation process with custom software can reduce the overhead cost per bid because your estimators save on the amount of time spent on each project
  • With an internal tool that leverages automation and machine vision, your team can bid on 10x the projects. 
  • Tech-enabled construction companies can conservatively expect a return on investment in 1.5-2 years

how construction estimation software can help you manage your business' overhead


It’s important to note that digitizing this process is not to replace your skilled (and human) estimators. In the scenario above, the software would put together an initial estimation based on your formulas. Once calculated, your team would come in at the end of the process and validate the work before sending it back to the client.

Simply put: computer estimating software shines by reducing the overhead cost and the amount of time spent on each bid.

If you want to talk to someone who’s in the business of solving complex problems with simple software solutions such as these, then book a call with a software professional here.

 

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Gelsey

Digital content producer

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