Without the right digital tools, estimators cannot fully leverage their cost-saving capabilities and will continue to be hamstrung heroes as well as unsung ones, writes Simon Herod
In the vast landscape of the construction industry, one key player often remains an unsung hero: the estimator. Yet, the success or failure of a project rests heavily on their shoulders.
Responsible for analysing project requirements, quantifying materials and providing accurate quotes, estimators hold the power to make or break a venture. However, the journey of an estimator is not without its challenges, especially in today’s economic climate.
The way we used to estimate is no longer viable. Embracing technology can help us to overcome some of the fundamental challenges in the industry – from unfair supply chain management and risky tender submissions with potentially unqualified pricing.
As someone having conversations with estimators every day for the past six years, I understand the challenges that estimators face. I am going to take a closer look at the importance of this skilled role, the hurdles faced amid supply chain challenges, and the pressing need to embrace digital solutions to enable accurate estimates during turbulent times.
Are we underestimating the estimator?
When a new building opens, the estimator rarely gets the kudos. Their contribution can go unnoticed, but it is their decisions that can lead to the success or failure of a project.
The key responsibility of the estimator is to form a precise view of the tender. Assessing quotations from an array of subcontractors leads to making all important decisions as to which quotes should form the basis of the tender submission.
The role of the estimator is pivotal to the construction process
The role of the estimator is therefore pivotal to the construction process. Fundamentally, the accuracy expected from estimates, and the level of risk associated with them, especially during market downturns, needs to be better understood and celebrated.
However, many skilled estimators are being hamstrung by a mass of data. Your estimators have a lot on their plate! Already navigating a risky business, basing tender on subcontractor quotes from outdated Excel sheets or a deficit in quote coverage risking the final price should not be an added burden!
With several affordable out-of-the-box solutions now available on the market, there is no excuse. After all, a tender won on a poor estimation process cannot only blow out the costs of the build but this ripple effect can have an impact on the entire business.
Risk reduction equals estimator success
Digital apprehension among estimators can be justified, especially when it concerns new processes that create more problems than they solve, sometimes the end goal can get lost in a heap of data and jargon.
At EstimateOne one of our values is “cranes before codes.” This helps us focus on what matters. Cranes are the outcome, the bit we need to focus on: the construction industry. Code provides the way to get there – the solution.
The field of estimation calls for a new direction in the form of superpower spreadsheets with software estimating tools
So, this is not just a call to digitise a process that was never broken, but to create better quality estimates more efficiently. In essence, technology offers a remedy to the daily challenges encountered by estimators, enabling a seamless flow of real-time data accuracy and collaboration without the typical risks.
Unfortunately, there is still some way to go. Legacy static Excel spreadsheets or poor add-on products to all-in-one solutions are the norms for most estimators. Yet these systems are prone to human errors, lack automation and are usually out of date. The field of estimation calls for a new direction in the form of superpower spreadsheets with software estimating tools.
The benefits of adopting technology for estimating are endless, but here are the top three:
- Reduced risk: A common platform encourages transparency and communication across the supply chain
- Efficiency: The removal of manual processes
- Better decision-making: With an up-to-date view of data and trends predicting future events is easier.
Highlighting the unsung hero
As a contractor, your primary objective is to achieve timely project completion. However, the alarming statistic of estimated additional costs reaching 50% due to project delays underscores the urgency for liberating estimators from Excel spreadsheets and time-consuming follow-up calls.
By providing estimator teams with the appropriate tools, you gain a competitive edge. Estimating goes beyond mere number-crunching; a holistic view of the project is key to success. Digitising the process enhances project planning, granting stakeholders visibility into progress and cost savings achieved at each phase.
By aligning all participants towards a shared objective and establishing clear project expectations from the beginning, seamless supply chain management is ensured
Moreover, it fosters essential relationships and collaboration, allowing estimators to excel. By aligning all participants towards a shared objective and establishing clear project expectations from the beginning, seamless supply chain management is ensured.
With bidding software and management tools, estimators gain access to a wide network of contacts, making reporting, tracking, and outreach effortless. This helps overcome the hurdles of labour shortages by building a dependable database of subcontractors whom you have established trust with and are more likely to collaborate with on future projects.
The ultimate weapon
Finally, effective budget management is a vital element for project success. Given the record-low construction margins, meticulous attention to detail has become crucial.
Estimators play a pivotal role in making cost-versus-quality decisions, at the forefront in navigating the intricate landscape of trade-offs between labour, equipment, and materials. Their ability to accurately forecast costs and manage budgets empowers contractors to make informed decisions and take proactive measures to remain financially on track.
However, without the right digital tools, estimators cannot fully leverage their cost-saving capabilities and will remain as many hamstrung heroes, as unsung ones. Equipped with real-time data and market insights, they can navigate supply chain challenges more effectively, resulting in more precise estimates, competitive bidding, and overall improved collaboration.
Simon Herod is UK and Ireland spokesperson at EstimateOne, a digital tendering platform
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