Construction Update

Some Considerations in Construction Software

About a third of construction contractors nationwide create job estimates using nothing but Excel. Does it work? Yes, but there are more efficient alternatives.

Construction firms today have a choice of IT products for accounting, estimating, design and cost-tracking. These tools are more sophisticated than earlier ones, letting contractors focus on construction, not computing.

More powerful software may cost more to buy and to implement, but it may also be more flexible and adaptable to your current processes. Low-priced software tends to be rigid — forcing your company to adapt to it.

Don’t Expect Plug-and-Play

When you install a new tool — estimating software, for instance — don’t plan to create bids with it tomorrow. Besides training, the bigger challenge will be bringing in your historical data.

Even if your bid and cost histories rest in a stack of handwritten yellow pads, this information must go into your new estimating package. (You can actually buy historical data. Of course, it has no clue about the historical price of cement, or anything else, in your market.)

Start With Current Needs and Look Forward

Do you want software for pricing, quality take-offs or both? Do you want to link these up with job costs and accounting? If you offer design-and-build, should you integrate CAD? These are all important factors to consider when deciding the level of sophistication you need.

Even if across-the-board integration is unrealistic today, it may not be a few years from now. So consider IT products that are scalable and flexible.

The Best You Can Afford

lf your accounting department needs help, you could hire someone. But even an entry-level employee can cost you $50,000 a year. Use that yardstick when you’re considering the price of software that will improve productivity at your current staffing level.

For more information about our services to the construction industry, Contact:
Mark Lund, Parter-in-Charge of Construction Services at 713.297.6907.

The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.