Estimation is an important aspect of the construction business. It helps contractors bid with precise data and submit refined quotes. Estimation increases the probability of projects winning and helps bring more business.

Many small contractors often struggle with winning big construction projects because of high competition. It usually happens because they don’t submit accurate quotes or their bidding amount is too high or low.

But with the help of project cost estimation software, small contractors can increase their odds of a project winning. The software can streamline various business processes that help small contractors make better estimates. Let’s look at these points to understand why estimating is challenging and how estimation software can help.

Why Is Estimating Challenging?

Estimating is a crucial part of every construction project. These estimates help you identify possible costs of construction projects that you are planning to work on. Let’s look at these points to understand why project estimation is challenging.

Quoting Process

Your project cost estimation begins when a potential client asks for a quote. The clients share details of the project and ask you to submit the estimated cost of the project. In many quotes, you might have to share the estimated time of completion too. 

You have to make these estimates as soon as possible, as the client might be collecting multiple quotes. Time becomes an important factor in the acceptance of your proposed quote. But at the same time, you can’t make any mistakes in the quote. Otherwise, it can lead to potential clients ghosting you, or you might make an estimate that won’t generate profit.

Availability

As a small construction contractor, you have to be aware of the availability of your resources. Can you handle a project you are bidding on or submitting a quote for? Keep this thought in mind while making an estimate. If you take on a project that you are not capable of doing, it can ruin your reputation. So understand your capabilities and take calculated risks when bidding for new projects.

Precise Calculations

To ensure you are making precise estimates, you have to maintain an updated database of your construction firm. How many projects you are running, how much workforce you have, machinery, and more. It is indeed an extensive process and will consume a significant amount of time. But if you fail to keep this database updated, it can lead to estimating mistakes. And as a small construction contractor, you can not afford these mistakes. It can hinder the growth of your business and cause revenue loss too.

All these factors can lead to the slow growth of your small construction business. This is why it is necessary to streamline these processes with the help of estimating software.

How Can Estimating Software Automation Help?

Estimating software can help you generate quick and precise estimates. Let’s examine these points to understand how estimating software can help your small construction business.

Accuracy

As mentioned earlier, manual estimates may consist errors and decrease your chances of winning a project. But this won’t be the case with estimating software. The software can produce estimates within a few minutes, and you can bid with more accurate results.

It helps you generate better quotes and act like configure price quote software. It helps you generate quick quotes as soon as a client requests one. With this quick response, you can attract potential clients and help them spend more time on the proposed quote. This way, you can proceed with the negotiation part and try to close the deal.

Better Communication

The probability of communication errors increases when you are working on multiple projects. This happens because you have to collect updated information from many projects and share it with clients. But keeping all these things on paper is not easy. But with the help of estimating software, you can store all this information on the cloud.

This is indeed one of the best features of estimating software. You can access all your project data anywhere. It creates a more secure way to keep your confidential business data. Only authorized people will have access to the cloud storage. These people can make changes or add new information from any project site.

If your clients ask for any updates, then you don’t have to run here and there for the information. All you got to do is log in to your cloud storage and share appropriate information with the clients.

Better Results

Full control over all your ongoing projects allows your team to produce better results. The teams coordinate better, and you distribute manpower more efficiently. If a project is about to be completed, you can use that location’s assets somewhere else.

This way, you can increase the productivity of your workforce and complete projects faster. It allows you to look for more projects and bring more business and revenue to your small construction company.

Improved Client Relationships

Consistent project leads help to grow your business. This means your clients are the most important as they are project bringers. You have to ensure that clients you work with get the best experience from your business. It can make clients happy, and they might also rehire you in the future. Also, existing clients can give you referrals and help you connect with other potential clients.

You can make this possible with the help of construction estimating software. The software provides detailed, organized, and easy-to-understand reports for your clients. These reports bring in more transparency, and your clients trust you better.

Better Strategic Planning

If you dream of growing your small construction business, then plan for future projects. The rapid growth of business lies in how well you predict the future and take calculated risks.

You will learn to take calculated risks when you automate your project estimation. The estimating software can tell you possible dates of project completion, and you can reassign your resources to other tasks in advance. So after the completion of one project, there won’t be any delay at the beginning of a new one.

Indeed, the accurate completion date of the project can vary, but still, it can provide a competitive advantage. So take full benefit of your estimating software and make better strategies for upcoming projects.

Improved Cash Flow

Cash flow is an important aspect of the construction business. Your construction business can face challenges where a project’s overall cost might increase. But estimating software ensures that your project’s estimates remain accurate. Also, it can help you with purchasing accurate quantities of construction materials. So you don’t have an inaccurate amount of construction materials. This way, your project remains within the budget and does not disrupt the business’s overall cash flow.

How To Choose The Right Estimating Software?

Indeed, you have understood how estimating software can help your construction business. But you have to choose the right estimating software that can fit right with your business. Let’s examine these points to determine how to choose an estimating software.

Cloud-Based Access

As mentioned earlier, with the help of cloud-based software, you can access project data anywhere. So you have to ensure that you choose cloud-based software. Some estimating software has desktop solution design. This means you can use this software only in your office space.

Cloud-based software is more collaborative and can be accessed from any project site. Authorized team members can share data with each other and make the work process more efficient.

Features

Bringing new technology to your small construction business can be a big change. You and your team members have to learn how to get the best out of this software. With the help of reliable software provider support, you can make this possible. Ensure the provider stays in touch with you even after your purchase. Also, they should provide you with appropriate updates whenever needed.

Cost

Make sure you choose software that your organization can afford. Otherwise, it can disrupt your small construction business’s cash flow. Choose software that can fulfill your business demand at a reasonable price.

Keep in mind how many users will use the software, as it affects the cost of the software. You can invest your money in fixed-rate software that you will purchase only once. But make sure your provider provides regular updates of the software. Also, ensure there are no hidden costs related to updates and other extra features of the software.

Conclusion

Estimating software can help transform your small construction business into a bigger one. All you got to do is invest your money in the right estimating software. This is why you should trust the experts and let them help you choose the right software. If you are looking for the best estimating software for small contractors, then connect with QDV. Let us help you grow your small construction business with our best-estimating software.

Companies must find new ways to boost efficiency, cut costs, and keep quality high in today’s highly competitive construction industry. One tool that has become increasingly popular in recent years is the configure price quote (CPQ) system.

The CPQ system automates the creation of accurate quotes and proposals, which speeds up the sales process and lets sales teams focus on building relationships with clients. Additionally, it can provide valuable data insights that can help companies make informed decisions about pricing and product offerings.

What is a “Configure Price Quote”?

Configure Price Quote is a software system that automatically lets companies make quotes and proposals for their products or services. It makes the whole sales process more manageable so that sales reps can create quotes and proposals more quickly and easily.

CPQ is used in industries like construction that offer complex products and services with many options and ways to set them up. The software automates the sales process, including configuring, pricing, and quoting products, so the process is accurate, quick, and consistent.

Benefits of CPQ for Construction Businesses

CPQ is being used more and more in the construction industry as a way to speed up the sales process and make the customer experience better. Below are some of the benefits of implementing CPQ in construction:

Faster Sales Cycle

The CPQ system simplifies the generation of quotes and proposals, making it faster and easier for sales reps to close deals. With CPQ, reps can quickly and accurately set up products and services, which cuts down on the time it takes to make a quote.

Improved Accuracy

By automating the process of making quotes and proposals, CPQ software makes it less likely that mistakes will happen. It ensures everything, such as prices, discounts, and other terms and conditions is correct. This eliminates the need for manual calculations, which can lead to mistakes.

Increased Productivity

The sales process is made more accessible with Configure Price Quote software so sales reps can focus on other essential tasks. This can increase productivity, pay less time on managerial tasks and more time on selling.

Better Customer Experience

With CPQ software, sales reps can quickly and accurately make quotes and proposals, improving the customer experience. Customers like it when the sales process is quick and easy, and CPQ can help construction businesses make that happen.

Improved Profitability

CPQ software helps construction businesses improve profitability by reducing the cost of sales. It automates the sales process, eliminating the need for manual calculations and reducing the chances of errors. This saves time and resources, which can be used to improve other business areas.

CPQ Implementation in Construction

Implementing CPQ in construction requires careful planning and execution. Below are the steps involved in implementing CPQ in the building:

Define Requirements

The first step in implementing Configure Price Quote is to define the business requirements. This includes identifying the products and services that will be included in the system and the pricing rules and configurations.

Choose a CPQ solution.

Once the business requirements are defined, the next step is to choose a CPQ solution. There are many CPQ solutions available on the market, and it’s essential to choose one that meets the business’s specific needs.

Configure the System

Once the CPQ solution is selected, it’s time to configure the system. This involves setting up the products and services.

In the End

Configure Price Quote is a software system that automates the sales process, making it easier and faster for sales reps to create quotes and proposals. CPQ software helps construction companies make more money by automating the sales process and cutting down on the number of manual calculations. This saves time and money.

If you’re ready to start looking for the best cost management software, QDV is here to help. QDV is the best and most adaptable advanced estimating solution available, meeting the needs of both large and small businesses.

It is no secret that manufacturing is the future of global growth and innovation! Manufacturing is indeed a critical force in both developed and developing economics. No wonder it accounts for a good part of the global GDP. Almost every leading industry has been transformed, holding the finger of advancements for a better world. Likewise, the manufacturing sector is transforming—bringing refinements, opportunities, and of course, challenges…

No business person or the stakeholders can now lean on the old modes of business process, and that’s why automated tools like manufacturing cost estimating software are blooming. This write-up explores the need and benefits of using cost estimating software in the manufacturing sector.

What is Manufacturing Cost Estimating Software?

Also known as manufacturing costing software strive to provide in-depth information and analysis of every aspect of product manufacturing. Whether estimating cost structure or formulating an outlook on the entire anatomy of the product’s cost, estimation software takes over every daunting task in manufacturing. This very software is responsible for the comprehensive estimation of every entity in the production process, which are;

• Resources
• Raw materials
• Types of equipment and components
• Labour costs
• Third-party services
• Machine devaluation
• Time for production

Replace traditional ways of estimating with QDV

QDV is one of the leading cost estimation software many prominent industries and organisations use for a reason. This software goes beyond human capabilities and proficiency to make estimating and quoting processes faster, more accurate and more consistent than ever. So it’s time to forget those common traditional ways (mentioned below) of estimating projects and products.

Practical knowledge and Experience

In an organisation commonly people generate cost estimates based on their practical knowledge and years of experience. Typically professionals with more than ten years of experience in manufacturing who have often worked at that particular organisation for like decades utilise their first-hand experience for estimation.

The limitation

But in this case the crux of the limitation could be the inconsistency. Since multiple people with different levels of experience in an estimating team work collectively to handle projects, most guesses for the estimations eventually lead to clashes. These apparently aren’t healthy signs for making accurate estimates. And what if one day those experienced estimators quit the organisation, naturally their expertise and proficiency will go with them—leaving the firm with nothing but a serious dilemma.

Historical data, Homegrown databases and Sheets

Companies often rely on home-grown spreadsheets and databases of historical information. Undoubtedly, Microsoft Excel (1985) was introduced to pile up big data and proved excellent in supporting this costing strategy. With this method, data from a previous quotation or project is used and modified to the current quote to make better estimates.

The limitation

But this method can go wrong despite the similarities! It could be fine for small suppliers, but if someone is dealing, designing, manufacturing and sourcing on a national or global scale, it is simply too complex to manage cost variables in a spreadsheet. Nevertheless, from an estimating point of view, this approach is good for cost analysis, but there are still potential risks of speed, accuracy, and consistency.

Well, now you know why there’s a need to replace these traditional estimating ways with automated and accurate tools like QDV!

The need of Manufacturing Cost Estimating Software is real!

Be it planning, job tracking, accounting, designing, programming, assisting or even making sales, this software is used by many leading manufacturing organisations—for a reason! This manufacturing cost estimating software comes in various shapes and sizes (customisable), so a specific industry can operate it according to the need. Below are the most common features of almost all cost estimation software features;

• Database driven
• User-Friendly interface
• CAD and ERP integrations
• Configurable
• Better estimating model
• Quoting capabilities
• Secure

This modern cost estimation software includes role-based user experience in product and manufacturing processes leveraged by prominent stakeholders like;

• Engineers and product designers
• Sourcing and supply chain managers
• Cost and time estimators

And when it comes to its relevance, it can be used for;

Estimates: estimating cost, time, product and design accurately and consistently, including setup, run-time, material, labour and geographical aspect.

Product cost Management: to generate the lowest possible costs for products

Designs for manufacturing: determining potential risks in designing

Benchmarking: determining the competitive cost and comparing it with competitors

In a few words…

QDV can be an ideal tool to enhance and grow your manufacturing process with accuracy and consistency. In fact, it is not just for manufacturing but also construction cost estimating software; a one-stop solution for all industries! So stop wasting your time, money and resources on inaccurate estimates!

Cost escalation can be very unpredictable, and it can be profitable or unprofitable for your business. Prices of goods and services change rapidly; you can’t put everything on luck regarding business profitability. You have to make proactive decisions that lead to maximum profit generation.

With the help of estimating software, you can strengthen your cost escalation prediction with accuracy and precision. If the project you are working on exceeds your current budget’s limit, that is cost escalation. It mainly happens when your business deals overseas and exports goods to other countries. Businesses done locally hardly face cost escalation. Let’s have a look at the factors causing cost escalation.

Causes of Cost Escalation

Currency Differences

Exporting goods and services to other countries indeed leads to currency differences. The amount you charge can vary when the money is transferred to your account after the currency exchange. Plus, the banks charge you some amount per transaction; when multiple transactions are done, multiple charges apply. If the amount collected is not converted instantly, then there are possibilities that the dollar can go up or down. This way either, you will get profit or loss. This scenario is very uncertain, and it will be best for your business to do all transactions as soon as possible.

Some investor holds their money in different countries to maximize profit. They wait until the dollar weakens against the currency they have invested in; this is very risky and unpredictable.

Taxes And Tariffs

Multiple taxes are applied while exporting goods to other countries. Most countries charge very few taxes, as it is for their good. But trade done from one country to another country is highly taxable. And the charges vary in every country.

Shipping And Distributions

Shipping is one of the toughest challenges; not only do you have to deliver the goods, but you also have to take care of the products to maintain their quality. Once exported, distribution to different vendors is also a challenge. Not all vendors demand the product at once. Shipping the product to a remote location is also a big challenge. The demand for the product can come from anywhere, and to maintain the integrity and image of your business, you have to distribute your product to remote locations.

Warehousing Costs

As mentioned earlier, not all vendors choose to buy the goods at once; you have to warehouse your product. Warehousing is costly as you don’t know for how long you have to keep the product stored. Poor warehousing can cause product damage leading to poor quality or no distributable product. Warehousing costs can be reduced if the product exported to other countries is already in high demand. This way, all the products will be collected by the vendors immediately.

Additional Regulations

You have to follow all rules and regulations of all countries. Some countries might cooperate with you, and not many implications are imposed on your business. But some countries have stringent policies and don’t allow flexible changes.

Estimating Software Solution

With the help of estimating software, you can predict better. Human predictions are not accurate, and the data available can’t be compiled to its best for figuring out the best possible scenarios. Estimating software is very accurate and understands the needs of the business better. Multiple scenarios can be seen, and calculated risks can be taken for maximum profitability. It will allow you to understand profitable locations, better marketing, product in demand, and more, leading to a better idea of cost escalation.

Conclusion

Cost escalation is not predictable and can hinder your business’s rapid growth. Calculations and predictions done by a person can be correct, but the possibility of mistakes is certain. To avoid all mistakes and find the best solution related to cost escalation, choose estimating software. Contact QDV today for the best estimating software that will help you grow fast.