Using Construction Software Based Bids to Increase Margins

Imagine you need to place a bid on a construction project with a large, well known company that you have never worked with before. You’ll likely resort to your tried and true methods of creating an estimate using pencil and paper. You are confident that past experience and knowledge will enable you to create an estimate that will make a profit. After all, you have been in business several years and your business is profitable. But how do you know that you are not leaving any money on the table, and that this new job will have costs that are in line with previous jobs? Without a construction software solution that tracks previously bid jobs, both successful and unsuccessful, the answer is you really have no idea.

Companies have been underestimating projects since the days of estimation began. The most common area of underestimation is labor hours. Especially with larger projects, it is common to not have a good idea about how much effort the new project will really require.

How can software help avoid these issues? Imagine if you could track the costs (material and labor), hours, contract size, and profits for each of your past jobs by project type (e.g., apartment, office, hotel, etc.) and then automatically and instantly analyze this information by project type and contract size.

Having this kind of information at your fingertips will allow you to pick projects that are the most profitable and ignore those where you will not make the margins that you want. The ability to submit accurate quotes will result in more profit for you for years to come. Not only will be able to use the software to maximize profits for upcoming projects, but you will be able to look back at previous projects to see where you may have left money on the table. This will allow you to learn from past mistakes and will only make your company stronger going forward. Check a construction software guide site for guidance in selecting the right software for your needs.

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