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Computerized Estimating Methods

Computers have clearly added speed, power, and accuracy to construction estimating. They make it possible to produce more estimates in less time, break a job down to a more detailed level for better cost control, manage change orders more easily, test “what if” scenarios with ease, and integrate estimating with other commonly used construction applications.

Automating the estimating function is an evolutionary process. There are many levels of computerized estimating, which vary in functionality, sophistication, time required to learn, and, most of all, price. Many estimators make the mistake of immediately transitioning their manual estimating into a fully integrated estimating software system without learning the basics of what a computer can do for the estimating process. Successful implementation of an estimating software system will not happen overnight. It usually takes many months of training and user interaction to get a system working to its full capability.

It is recommended that computerized estimating be introduced through a multi-step process. First, learn the basics of computers and estimating through the use of industry-standard spreadsheet software programs. Next, introduce spreadsheet add-on programs, which will provide more versatility than a standard spreadsheet program. Finally, consider upgrading to a complete estimating software application. This last step usually allows estimating software to be integrated with other related software applications, such as job cost accounting, scheduling, project management, and CAD.

The basis of any computerized estimating system is its unit price cost database. No matter how sophisticated or user-friendly construction estimating software is, its overall success depends upon the completeness, functionality, and accuracy of the cost data, and the methods by which it is used. Without a fully functional database, construction estimating software is nothing more than a very expensive calculator.

One effective way to move through the different levels of computerized estimating is by using industry standard data as the foundation of the system. Utilizing electronic cost data, for example, it is possible to seamlessly transition an estimating system from one step to the next, easily updating the cost data and integrating it into thousands of pre-built assemblies.

Another major capability of spreadsheet programs is managing and sorting information. A typical line item of cost data consists of some sort of a line number, description of task, material costs, labor costs, and equipment costs. There is information on crews and productivities, which needs to be maintained. Typical construction databases are in the thousands and tens of thousands of line items. Most spreadsheet programs allow information to be entered, managed, and sorted numerically or alphabetically.

Excerpted from RSMeans Unit Price Estimating Methods, 4th edition.