How do estimating systems turn the information in a database into an estimate? And where do you fit in?

The human interface

How do we get information out of the database, and into the estimate? This is where the human interface comes in. The biggest differences in the various estimating programs come in how they present your choices and how you select them.

At the simplest level, these systems copy the material you select from the database, multiply it by your quantity and store the result in a takeoff, or estimate file. I have experience with two methods these programs use to access the information in the database. Please note that within each of these methods, there are many differences between the available programs.

Leading by the hand

I have used several estimating systems designed around this method of inputting a takeoff. These systems have the user select a takeoff module, such as fixtures, outlets or branch. The programs then prompt the user to select the components required for each takeoff item. For example, in outlets, it would prompt you to select a box, ring, device and plate. 

The programs usually provide a way to select other miscellaneous items that may be needed for each outlet. The first system I used had limited choices, such as only five different types of conduit supports. Even with the few choices of these earlier systems, I was able to prepare estimates for profitable work in the seven figures range. 

Lists

The other method of inputting your counts is through lists. The program will present you with lists of items and assemblies organized by groups such as fixtures, outlets, branch, etc. You simply work through the lists until you find the item or assembly you want, select it and enter a quantity. The differences between the various available estimating programs are how the lists are organized, how complete they are and the ease of finding items and assemblies. Because of how large today’s databases can be, most programs include ways to search for components and assemblies.

The summary

The next function the software provides is summarizing your takeoff input. Let’s say you enter ½ EMT 20 times when you input your takeoff. The summary will add up all 20 entries and then display the total quantity, material dollars and labor hours on one line. The program will do this for every item you input, and present you with a complete list of all material pricing and labor hours. This is similar to the price sheets used in paper and pencil estimating methods. 

This function is a great way to study your takeoff. Look for mistakes or input errors you may have made. You can also look for large quantities of materials that might get a better price from a wholesale house quote.

The recapitulation

Now, the software will assist you with the recapitulation. This function is where all other costs are added to the material and labor to come up with a final price. First, the total material dollars and labor hours are brought in from the summary. Next, the labor hours are converted to dollars. Then add the quotes, subcontractors, rentals, indirect labor and direct job costs. The final step is where taxes, overhead and profit markups are added.

The reports

Where would we be without reports? These estimating software packages deliver specific reports for each function. I have seen some software capable of creating more than two dozen different reports for each function. Below are some examples.

For the takeoff, they can have basic and advanced audit trails, showing different levels of detail. I might use the basic report to send takeoff counts to a wholesaler, while I would use the detailed report as a record of how I took off the job. 

For the summary, reports can be sorted in several different ways, depending on your needs. You can also export your job to various accounting packages and create analytical reports about your estimate. Of course, there will be many reports regarding the recap, with all the details needed to bid the project.

Before making a software purchase, take a close look at each one you are considering to be sure you find the right one for you.  Don’t hesitate to ask a lot of questions.

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