Calculations are a crucial part when deciding on your estimates. For years, construction contractors have relied on spreadsheets and manual calculations.

However, manually entering data or calculating construction costs, including material and labor costs, square footage, or conducting a cost analysis in the construction industry, can be challenging due to technical difficulties.

So, how to do error-free estimating?

Use a dedicated construction cost estimating software for your complex projects. It is the best estimating solution for creating estimates, bid packages, and support services such as collaboration tools, streamlined processes, etc.

Construction Estimating Software: 5 Costly Mistakes that Contractors Must Avoid

Accurate estimates are the foundation of any successful construction project. The numbers you calculate can make or break your profit margins- either driving your business toward higher earnings or resulting in significant losses.

This means construction management needs accurate estimates more than ever, along with the best estimating tools for construction projects.

In this blog, we will study some costly mistakes that construction contractors must avoid to complete estimates quickly with profitable work.

Quick Insights:

1. Accurate estimates are the core factor in winning projects.
2. Spreadsheets and manual calculations are risky and delay project delivery.
3. Construction estimating software solves all errors and mistakes with real-time tracking, reminders, updates, etc.
4. With tools like ConstructionBase, you can create precise estimates and CRM integration tools to ace your project estimates and delivery.

What is Construction Estimating Software and Who Needs It?

Construction Estimating Software is a comprehensive suite used for detailed estimates and bid management.



It has advanced features for the estimation process, such as a customizable database, a user-friendly interface, accurate estimates, real-time cost tracking, and customer relationship management.

Who needs construction cost estimating software?

A. General contractor and specialty contractor:

• Help you with faster bid calculations to win more complex projects.
• It also has user-friendly estimating templates for job costing and comprehensive features like competitive pricing, material pricing, and advanced reporting.

B. Multiple estimators and project managers:

• Help you with cost elements and job costing with a user interface and seamless integration with other tools, extract quantities directly, and reduce errors.
• Accounting software for clear estimates and labor costs, along with project management tools, so that every project stays on track.

5 Costly Mistakes that Contractors Must Avoid



Mistake 1: Using an Outdated or Inconsistent Cost Database

Spreadsheets can never match the pace of construction projects. As construction companies evolve and rely more on data-driven decisions, their needs and processes also change over time.

For instance, traditional floor plans are now replaced by digital versions that can be updated instantly and accessed anywhere through cloud-based platforms. All you need is an internet connection to stay up-to-date with changes.

Moreover, materials and labor costs shift weekly in the construction industry. Cost database changes every time new materials are ordered or a new labor force is introduced, with subcontractor management plans.

How Construction Estimating Software Solves This?

1. Centralized cost database: All pricing information is stored in one place, and you can access it easily through the software.
2. Automatic updates: Labor, material, and supplier rates are automatically updated in real time with current market rates.

Mistake 2: Missing Critical Scope Items

Even the most experienced general contractors can overlook one or two key items from the product listings, including material price, labor hours skipped, or subcontractor fee written incorrectly.

These may seem like minor mistakes, but they can impact the overall project management.

Missing critical items often leads to change orders and disrupts the client communication and satisfaction. Incomplete manual data entry leads to invalid job costing and is considered an opportunity to lose more projects.

How Construction Estimating Software Prevents Scope Oversights?

1. Built-in Templates: With the right estimating tools and built-in templates, you can never miss any critical data, and the scope of errors with miscalculation is reduced.
2. Automated Alerts & Warnings: The software can flag missing entries or inconsistencies in estimates, preventing overlooked items.

Mistake 3: Spreadsheet & Formula Errors

Spreadsheets rely on manually entered formulas, which makes them prone to errors. A misplaced decimal or an incorrect formula can lead to inaccurate cost estimates.

During quantity takeoffs, mistakes are common because estimates are obtained from project drawings, including complex graphs and measurements.

Even small errors can be risky; clients may lose trust, bids may need rework, and profit margins can shrink.

How Construction Estimating Software Eliminates Formula Errors?

1. Automated Calculations and Error-Free Profitable Work: Construction estimating software removes manual errors by performing precise calculations every time. It ensures accurate estimates for projects of all sizes and helps protect your profits.
2. Real-Time Updates and Consistency: The software automatically updates formulas and cost data whenever material prices, labor rates, or project specifications change.

Check this: 5 Signs Your Construction Company Needs Estimating Software

Mistake 4: Poor Collaboration Between Teams

Estimators and contractors often work with multiple versions of spreadsheets, making it unclear which version contains the correct construction costs.

As a result, miscommunication often increases the workload, confusion, and delays the completion of construction companies' project delivery. A single miscommunication can cause many difficulties in calculating accurate estimates.

How Construction Estimating Software Improves Collaboration?

1. Cloud-based platform: Everyone works on one central platform, and all team members have access to the correct and latest estimates.
2. User interface: Contractors, project managers, and clients can easily use the software for clear estimates at their own pace.

Mistake 5: Slow Bid Turnarounds

Manual construction estimating and the bid process take a lot of time and hard work.

From the beginning of the project, you spend time calculating costs, then file them in spreadsheets, and then work on preparing a professional bid for your clients.

This often results in delayed proposals, which means you lose the opportunity, and competitors take away your profit and client.

How Construction Estimating Software Speeds Up Bidding?

1. Professional Proposal: The software generates ready-to-use, professional proposals with accurate estimates, saving time and reducing errors.
2. More projects: Faster bid preparation impresses clients, improves satisfaction, and increases your chances of securing multiple projects.

Did you know? 52% projects are delayed due to these mistakes in the construction industry.

How to fix these Mistakes using Construction Estimating Software?

The mistakes mentioned above are risky for the construction business. You might end up losing clients, revenue, and profit all at once.

Fortunately, construction estimating software can help you manage estimates and construction costs more accurately. Let’s take a look at how the software addresses these common mistakes:

I. Accurate Estimates: Accuracy that protects profits

• Accuracy comes from using software, automated formulas, and calculations, which help you stay ahead in the competitive market.
• It helps win clients and projects, increasing profits with no outdated information and scope for human errors.

II. Advanced Reporting: Transparency that builds client trust

• With advanced reporting tools, clients are transparent about project progress and the sales reps working on it.
• There’s no room for wrong calculations or incorrect details in construction estimating proposals, ensuring clients are satisfied with precise estimates.

III. Real-time Collaboration: Collaboration that keeps the team aligned

• The software integrates with other tools like accounting or CRM platforms, keeping your team updated on all project details.
• It helps your team stay updated with all details with automated reminders and a user-friendly interface. Collaboration seems easy with a cloud-based platform for unlimited users.

Read: How Contractors Can Improve Forecasting with Construction Software

How to Choose the Best Construction Estimating Software?

Construction estimating software is the best solution in this digital era for scaling your business with client retention and revenue.

Here’s a step-by-step guide to help you choose the right software:

Step 1: Define your Project Needs

Create a checklist of your project requirements, including labor costs, material costs, specific formulas, and the types of graphs or reports needed for detailed estimates.

Step 2: Look for Key features

Identify the essential features your software must have, such as cost analysis, real-time tracking, CRM integration, automated reminders, accurate estimates, and professional proposal templates.

Tip: Make sure the software aligns with your workflow and project complexity.

Step 3: Compare and shortlist the all-in-one solution

Once the checklist is ready, explore multiple software options. Go through the free version or free trials and check if that best suits your requirements.

Step 4: Calculate ROI and select the best construction estimating software

Consider how the software reduces human error, improves accuracy, and helps win more clients.

Also, evaluate whether it provides precise calculations and streamlines your estimating process. Once you find the solution that delivers the most value, select it for your business.

Why Contractors Choose ConstructionBase Estimating Software?

ConstructionBase is the all-in-one solution for construction projects. It streamlines all your operations from scheduling to booking appointments, checking inventory management, smooth project management, and professional estimation of bids.

Let's have a look at ConstructionBase features:

• Creating Clear Estimates: It uses historical analysis to create accurate estimates and minimizes cost overruns.
• Real-time project tracking: Track deadlines, materials, and costs of the project and stay on track with budgets.
• Reporting and Analytics: It has advanced reporting tools for tracking and calculations that help you stay updated with schedules and change orders.
• Labor Scheduling & Tracking: It synchronizes labor schedules with cost estimates to prevent conflicts and reduce the risk of overruns.
• Takeoff Integration: You can directly integrate digital takeoffs into your estimates, auto-calculating quantities and costs to create precise, error-free bids.
• Bid Comparison & Management: Organize and compare bids from multiple subcontractors and suppliers side-by-side, enabling quick selection of the most cost-effective and quality-driven options.
• Optimized Budgeting & Planning: Automate calculations and enforce cost controls to enhance resource allocation, manage cash flow, and secure project profitability.

Final Thoughts: Precision Over Guesswork

Manual calculations and data entry have a high risk of errors due to human mistakes. One wrong input can mishandle your construction project and delay its completion.

However, you can opt for a Construction estimating software that helps you deal with these avoidable mistakes with accuracy, speed, and precision.

For contractors, this estimating software is the magic tool to win more projects.

Stop letting manual errors cost you projects!

Stop losing bids and clients to your competitors due to outdated errors and miscalculations. Be Ready with faster and accurate bids.

With ConstructionBase, you bid faster, estimate smarter, and win with confidence. Book your demo today.

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