Tips for keeping your estimating department organized
Jerry Aliberti • March 11, 2024
A well-organized estimating department can help a construction company stay competitive.
For any construction company, an estimating department plays a crucial role in ensuring the success of a company. This department is responsible for calculating the costs involved in a construction project, including materials, labor, and other expenses. A well-organized estimating department can help a construction company stay competitive by providing accurate estimates and avoiding costly mistakes. Without proper organization, an estimating department can quickly become overwhelmed, leading to errors in estimating and potential financial losses for the company. For these reasons, it’s critical for a construction company to follow the below tips in keeping their estimating department organized to ensure the success of its projects and the overall growth of the business.
Have the right software and technology
Although Excel remains a powerful software for many reasons, the days of estimating on Excel are over. You need several pieces of software.
Construction Bid Management software.
This software allows you to store all your subcontractors and vendors’ names and contacts, download your specs and plans, and have a direct line of communication with each of your vendors and subcontractors. As you receive addendums, you can update the project and all vendors and subs get emailed automatically. They can also submit bids via this software as well. No more sending emails individually and wasting crucial time.
Bidding software.
This software allows you to make a master bid, which is a base bid with typical labor rates, equipment, and materials. By using bidding software, you’ll have increased efficiency, more accurate estimates, improved collaboration because multiple estimators can work on the same bid at the same time, enhanced reporting to cross-check your numbers, and better integration with other estimating software. These are some of the many benefits of having bidding software. Each software has its own benefits so do your research and choose what’s best for your company.
Takeoff software.
This software will reduce errors and improve efficiency in your quantity takeoffs. The old days consisted of using an architect or engineer’s ruler. Takeoff software provides accurate fast measurements.
The above technology and tips is critical in keeping your estimating department organized
Task Delegation
Task delegation is always a critical part of any construction process. Break down what items of work each estimator will be working on, and provide dates when takeoffs need to be complete and dates when costing needs to be complete. Have daily individual meetings discussing the items and project and weekly meetings with the whole team so everyone knows what’s happening in the department.
Double Check Bids
All bids must be double-checked. All costing needs to be done several days to a week before the bid due date. Another set of eyes, typically a chief estimator, executive, or the owner, needs to review each item. We are all human and we all make mistakes or misjudge costing. In addition, the person checking the cost may have a better way to approach a specific scope of work.
Direct Email Address
Have a bids@yourcompanyname.com email. I can’t tell you how many times I’ve heard and seen very important quotes get sent to someone out in the field or on vacation not checking emails and a bid was lost or the wrong number was carried in a bid because of this. This is especially important if you deal with vendors or subcontractors who aren’t as tech-savvy and who refuse to use the construction bid management software. In addition, have a computer with a printer hooked up in the bidding room and have the computer set up so every time a quote is sent to bids@yourcompanyname.com email it’s automatically printed out. No more sending quotes to individual team members.
In conclusion, your estimating department is critical to the success of your construction company. By following these tips in keeping your estimating department organized, you can help your company win more projects, reduce the risk of errors, and improve collaboration between team members.
The Challenge One of the most overlooked problems in construction is confusion over who is actually in charge of the project. In smaller companies and on smaller projects, it often falls on the superintendent. They have the field experience, are respected by the crews, and drive the work forward, while the project manager plays a more supporting role. That structure works when the projects are small, but as the company grows and the projects become larger, the cracks start to show. Clients expect the project manager to lead. They want answers on budgets, schedules, and commitments. The word “manager” in the title makes them assume that the person has the authority, and in my years of experience, they should. Meanwhile, the superintendent’s value is in driving the day-to-day in the field and keeping production moving. When the lines between the two are not redefined as a company grows, tension builds. Superintendents who have always “run the job” struggle to let go. Project managers who have always supported now need to step into leadership. The lack of clarity creates a tug of war inside the company.
Welcome to the first edition of The Growth Accelerator. This newsletter is designed for construction owners who are serious about scaling their operations without compromising profit or control. After 22-plus years in the industry, managing hundreds of millions of dollars in projects in the field and leading estimating teams responsible for more than $12 billion in projects, I have seen the patterns that make or break contractors. Each week, I will share insights from the field and boardroom to help you run a stronger, more profitable business. So let’s dive into the first issue topic! I figured I would start with the topic of one of my most viewed LinkedIn posts, which received over 225,000 impressions!
Struggling with large-scale construction budgeting? I can help contractors and developers plan, manage, and optimize budgets for complex projects. Read on...
