5 Costly Construction Estimating Challenges and How Software Solves Them

In construction, your estimate sets the tone for the entire project — from creating your budget to forecasting profits.

Yet for many contractors, estimating is still a frustrating, time-consuming process filled with uncertainty and risk.

Between fluctuating material prices, changing project scopes and outdated tools, it’s no surprise that even experienced teams run into problems.

The good news? Construction estimating software is designed to fix these issues — giving you faster and more accurate estimates that win you work.

Let’s take a look at five of the most common construction estimating challenges and how software helps you overcome them.

Key Takeaways

• Using manual methods to create construction estimates introduces costly errors and delays.
• With construction estimating software — like McCormick— you can perform automated calculations and access real-time data for more precise estimates.
• Tracking material and labor costs is also much easier with construction estimating software and can be done in seconds.
• Sourcing material with manual methods can take several hours and multiple emails or phone calls, but with the right software you can find the materials you need at the right price in a few minutes.

1. Missed Costs and Hidden Expenses

Even the most skilled and experienced estimators can overlook project expenses, especially things like:

• Equipment rentals
• Indirect labor
• Permit fees

These can later turn into costly surprises that erode profit margins. When estimates are built from scratch or copied from old spreadsheets, it’s easy to miss critical details.

Identifying Costs With Construction Estimating Software

Construction estimating software uses predefined templates, trade-specific material databases and vendor quotes to ensure every cost is tracked and the necessary materials are obtained before the project begins.

With this software, building comprehensive estimates that factor in materials, labor, equipment, overhead and contingencies are much easier, so you’re never scrambling to cover costs you didn’t plan for.

2. Inaccurate Data

Spreadsheets might seem convenient, but they’re prone to costly errors.

A single broken formula, miskeyed number or missed measurement can throw off an entire bid — and you may not notice until it’s too late, which could lead to unexpected costs and disputes.

It’s also important to note that spreadsheets offer little visibility across your team, especially when changes occur.

Streamlining Workflows With Estimating Solutions

All-in-one construction estimating and takeoff software significantly reduces the risk of human error because you can:

• Perform precise digital takeoff from project blueprints
• Sync takeoff and estimating data to your bid without the need for manual entry
• Automate complex calculations to create accurate estimates

By leveraging construction estimating software, you no longer have to worry about spreadsheets or other manual methods ruining your estimates.

3. Inconsistent Estimating Across Projects or Teams

Without standardized estimating processes, teams risk submitting inconsistent bids, which can confuse clients, cause you to lose out on bids and it makes it harder to identify costs and compare project performance over time.

Get Real-Time Visibility With Bidding Software

Using cloud-based construction estimating software, your entire team works from the same system, using shared templates, updated pricing and standardized processes.

This not only improves collaboration but also helps you build a more professional and reliable estimating reputation.

4. Over or Under Bidding Due to Fluctuating Prices

Material costs and labor rates can change week to week.

If you’re basing your estimates on outdated pricing, you’re either underbidding and losing money or overbidding and losing jobs.

Trying to track material and labor cost fluctuations manually is challenging and time-consuming.

Get Up-to-Date Pricing With Construction Bidding Solutions

Construction estimating solutions often includes real-time pricing updates from suppliers and industry databases.

This helps you generate bids based on current market conditions so you can stay competitive and profitable.

5. Difficult Revisions and Scope Changes

Construction projects rarely go exactly as planned.

When project scope changes come in, teams scramble to update their estimates manually, which is time-consuming and leaves room for errors, delays and miscommunication with clients or subcontractors.

Adaptable Construction Estimating Programs

Modern estimating software makes revisions simple. You can track changes and generate new versions with clear cost breakdowns.

This speeds up the process, keeps everyone on the same page and protects your margins when changes occur.

Solve Your Construction Estimating Problems With McCormick

Construction estimating doesn’t have to be a guessing game — or a constant race against the clock.

Your estimates set the tone for the entire project so precision and speed are crucial.

With construction estimating software — like McCormick — you gain a more efficient workflow, reduce costly errors and produce smarter, more competitive bids to win more jobs and maximize profitability.

McCormick offers:

• All-in-one takeoff and estimating
• Trade-specific material databases
• Cloud-based estimating that allows your team to review estimates from anywhere and on any device

For more information about McCormick, speak with a specialist today.