Read Time: Less than 7 Mins Last Modified: October 18th, 2024

Securing construction projects is paramount in the fiercely competitive landscape of the construction industry.

Construction estimators must deliver competitive bids and develop an efficient winning strategy to succeed. However, manual bidding is fraught with challenges; it is time-consuming and prone to errors.

To thrive in today’s construction industry, it is imperative to elevate your estimating. Fortunately, by relinquishing labor-intensive manual calculations, mitigating bidding errors and averting the risk of losing opportunities to rivals, the adoption of construction estimating software offers a promising solution.

This blog will explore how contractors can leverage construction bidding software to gain a competitive edge. Let’s uncover the transformative benefits of incorporating construction bidding software into your contracting business.

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What is the Process of Construction Bidding?

Construction bidding involves a few crucial steps:

  1. Takeoff: This critical step involves a meticulous examination of architectural drawings, identifying and measuring specific areas on the jobsite. This comprehensive evaluation forms the basis for accurate material estimation and subsequent bidding.
  2. Estimating: During estimating, the contractor assesses costs for materials, labor, equipment and insurance. This includes determining quantities of trade-specific materials, considering project complexity and market rates.
  3. Presentation: To increase your bid’s chances of selection, focus on competitive pricing and effectively pitch your competency and professionalism. Provide a detailed scope of previous work and highlight what sets you apart from competitors (i.e. experience, early project deadline or lower costs).
  4. Bid Selection: After reviewing the bids, the client evaluates factors such as price, experience, reputation and timelines. Each bid is carefully considered to align with the client’s requirements and expectations.

While these steps may not seem challenging, issues can arise when estimators rely on manual processes when building their bids.

How Contractors Fall Short With Manual Bidding

When relying on manual estimation, contractors employ the traditional method of calculating estimates without the assistance of construction estimating software. However, contractors utilizing this approach may encounter several shortcomings, including:

  1. Inaccurate Estimations: Creating inaccurate bids can significantly decrease your chances of winning construction jobs.
    1. If your bid is too high, potential clients may turn down your offer in favor of competitors offering lower prices. Conversely, if your bid is too low, you risk losing profits if unexpected expenses or delays occur.
  2. Inaccurate Takeoffs: An incorrect takeoff calculation can result in ordering too little or too much construction materials, leading to either overspending on excess inventory or project delays due to a lack of resources.
    1. Incorrect construction quantities lead to change orders, which can potentially result in more costs, delays and unhappy clients.
  3. Bidding Errors: Even one small mistake can cost you thousands if you are picked for the job.
    1. Bidding errors can also lead to disputes with the client, and ultimately, have a negative effect on your company’s reputation.

Manual bidding can result in costly errors and delays. Fortunately, there’s a solution in the form of construction estimating software, which automates much of the estimating process to build better estimates faster.

How Construction Estimating Software Benefits Contractors

Leveraging the appropriate tools and resources can provide a significant competitive advantage and streamline the bidding process.

Construction bidding software plays a pivotal role in achieving these objectives by offering the following benefits:

  1. Accuracy and Efficiency: Construction estimating software automates calculations, reducing human errors and saving time. Some construction estimating software also offers takeoff
    1. This helps you streamline the measurement process, ensuring accurate material estimation and labor calculations.
  2. Cost Optimization: Construction estimating software helps contractors identify the most cost-effective materials and quantities required for a project.
    1. It provides real-time pricing information about trade-specific materials, allowing estimators to adjust their estimates based on current market rates.
  3. Project management: Construction estimating software helps with project management by creating itemized estimates and generating comprehensive reports.
    1. Contractors can track expenses, monitor project progress, and compare actual costs against estimated costs. This facilitates better financial control and decision-making.
  4. Collaboration and Communication: Construction estimating software enables contractors to collaborate with team members, architects, and clients.
    1. They can share estimates, make revisions and communicate project details more efficiently. This enhances collaboration and ensures everyone is on the same page.
  5. Professional Presentation: Construction estimating software produces professional-looking estimates and reports that can be customized with company branding.
    1. This helps contractors present their proposals in a polished and organized manner, leaving a positive impression on clients.
  6. Accurate Calculations: Contractors can input different variables and scenarios into the software, allowing for quick evaluation of multiple options.
    1. This flexibility enables contractors to optimize their estimates by adjusting material quantities, labor costs, and exploring alternative approaches based on real-time data. As a result, bidding and cost projections become more accurate and informed.
  7. Scales with Your Company: Estimating software provides a scalable solution that can handle the expanding demands of your business by:
    • Managing high volumes of data
    • Effortlessly handling complex calculations
    • Generating detailed estimates efficiently
  1. Real-Time Reporting: Construction estimating software offers robust reporting capabilities. Contractors can generate comprehensive reports that provide detailed insights into project estimates, costs and profitability.
    1. These reports can be customized and tailored to meet specific requirements, allowing contractors to present professional and well-organized proposals to clients.

By leveraging technology, construction estimating software facilitates business growth and adaptation to changing market dynamics.

Construction Bidding Software & Your Construction Business

To implement construction bidding software successfully into your construction business, consider the following steps:

  1. Begin by assessing your needs and objectives. Take into account the project volume, team size and budget constraints. Research and compare different software solutions to find the one that best aligns with your requirements.
  2. Many software companies provide implementation and training, allowing your team to become familiar with the construction estimating software’s functionalities and capabilities.
    1. Training will ensure that the software is integrated into your construction company seamlessly and effectively.
  3. Integrate the software with your existing systems, such as project management or construction accounting tools, to streamline workflows and data management.
    1. The software provider will help with this endeavor. By the end of this step, your data will transfer seamlessly between your integrated software, providing you with real-time data to make more informed decisions.
  4. Continuously evaluate the software’s performance and make necessary adjustments to optimize its effectiveness. Assess its effectiveness in streamlining your bidding process, enhancing accuracy and improving productivity.

Gain a Competitive Edge with Construction Estimating Software

Incorporating construction bidding software into your contracting business can provide a significant competitive edge. By leveraging the accuracy, efficiency and optimization capabilities of this software, contractors can:

  • Generate precise bids
  • Streamline their bidding process
  • Enhance project management

With automated calculations, cost optimization, improved collaboration and professional presentation, contractors can improve their chances of winning projects, boost profitability and establish a reputation for being reliable and efficient.

UG to Estimating

The EDGE® is Built to Handle Construction Estimating

The EDGE is a leading construction estimating and takeoff software designed to tackle the unique challenges of the roofing, fireproofing and interior and exterior finishing trades.

With The EDGE you can:

  • Access to trade-specific databases
  • Auto-calculate production changes instantly
  • Perform built-in takeoff and have estimates change in real-time as you measure plans on-screen
  • Review estimates and reports on any device from anywhere with cloud storage

Contact us today to schedule your free personalized tour with one of our construction estimating experts.