2. COMPUTERIZING YOUR ESTIMATING PROCESS
Presented by:
Rex Davis & Associates, LLC

3. WHY DO YOU WANT TO COMPUTERIZE YOUR ESTIMATING PROCESS?

4. Reasons for Computerizing
Updating your methods
Record Keeping
Turn out more estimates
More accuracy

5. Reasons for Computerizing
More Consistency
Ease of management after getting the job.
Less paper?
Accounting continuity.

7. What are your chances of actually getting that job?
The typical ratio of accepted bids to bids put out.
1:5 to 1:10, average 1:8
This varies with economic conditions.
Are you in this range now?

8. How long does it take you to prepare an estimate?
Varies on job size and complexity. (1 wk, 1 day, 2 hrs)
How long does it take you to estimate a change order? (1 wk, 1 day, 2 hrs)
Does your time matter?

9. Types of Estimating By hand (pencil & paper) Spreadsheets
Database software

10. Types of Estimating By hand (pencil & paper)
Takes the longest to prepare an estimate.
Least amount of time to set up.
No software training, only good math skills.

11. Types of Estimating Spreadsheets
Takes the next longest to prepare an estimate.
Takes time and effort to create a set of spread sheets you will use.
Training on the use of your spreadsheet software.

12. Types of Estimating Database software
Takes the least amount of time to prepare an estimate.
Takes a good amount of time to setup and make “your” estimating software.
Requires training on the software, could be two (2) days, two (2) weeks, or longer depending on complexity of system.

14. SPREADSHEETS Positives Formulas already in system Can be updated
Consistency
Accuracy

15. SPREADSHEETS Positives Ease of management
Copy from job to job (if same types of jobs)
Cost

16. SPREADSHEETS Negatives No data base to draw resources from
Can blow away (delete) formulas
Different materials different jobs
Control of the spreadsheets

17. SPREADSHEETS Negatives
Transfer of information to Acctg. Or PM software.
Computer storage space
Development time

19. SPREADSHEETS Things to Remember
Create a template to start from each time.
Develop your spreadsheets to follow how you would estimate.
Develop your formulas in your spreadsheet as you would estimate.

20. SPREADSHEETS Things to Remember Once formula is input and correct,
LOCK IT and write protect it.
Keep your spreadsheets as simple as you can.
If your spreadsheets are getting too complex, look at estimating software.

21. SPREADSHEETS Things to Remember
How and where you are going to store your files?
It’s easy to fall in love with spreadsheets you have created.
Always look for ways to make your estimating process better.

22. SPREADSHEETS Things to Remember
In the use of computer software, whether spreadsheets or database software, you need documentation of the process and procedures for their use by your company. No one person is going to be around forever to do the estimating duties.

24. Spreadsheets you will need.
Information Page
Quantity Take-off
Recapitulation Sheet
Estimate Summary Sheet
Final Proposal

25. Information Page

26. Quantity TKO/ Recap

27. Quantity TKO/ Recap

28. Bid Summary Sheet I

29. Bid Summary Sheet II

30. Proposal Sheet

31. Proposal Sheet

32. Proposal Sheet

34. ESTIMATING SOFTWARE Positives Formulas already in system
Database of materials
Can be updated
Consistency
Database flexibility

35. ESTIMATING SOFTWARE Positives Accuracy Ease of management
Copy from job to job (if same types of jobs)
Transfer of information
Computer storage space

36. ESTIMATING SOFTWARE Negatives Cost! Management of the system
Updating & customizing
Training time

38. What type of system is best for your business?
How do you estimate?
What types of materials, labor, and equipment do you use?
Your company goals and objectives.
How much accuracy do you want?

39. What type of system is best for your business? (cont.)
What will be your ROI? How long? How much?
How many trades do you need to estimate for?
What type of forms do you want from your estimate?

41. CHOOSING A SYSTEM Define your processes
1) Continue with existing process.
2) Make changes to your existing process.
Establish what you want from your system

42. CHOOSING A SYSTEM
Take a look at a wide range of different software (Don’t worry about cost yet). This will be a general demonstration.
Write down what you like and dislike about all the software.

43. CHOOSING A SYSTEM Decide what software might be a fit.
Ask for a second demonstration, specific to your trade or business. You may have to provide some data.

44. CHOOSING A SYSTEM
Ask for a non-disclosure agreement if you are providing data. This will protect your way of estimating from your competitor.
Determine a range of pricing you are comfortable with.

45. CHOOSING A SYSTEM
Narrow down your choices to two or three possible software solutions and get one more demonstration.
Ask a lot of questions about how each works.

46. CHOOSING A SYSTEM Questions to ask: Viability of company
References from companies in the same craft as you (Not your competitors).
How is the system customized for you?

47. CHOOSING A SYSTEM Questions to ask:
Can you customize your own reports? Reports available?
Multi-user capabilities?
Training?
Updates?

48. CHOOSING A SYSTEM Questions to ask: Customer Service & Support
User friendly?
In house upkeep?
Back-up?

49. CHOOSING A SYSTEM
Negotiate pricing with those companies you have decided their software will work for you.
Estimate your ROI.
Make your decision on the software you want.