One of the most important aspects of a construction project is estimating its bid accurately and efficiently. Construction bidders have two options: either do it by hand or use automated construction estimating software like the SharpeSoft Construction Estimator. While both options have pros, the latter can save time and minimize errors.
In this blog from SharpeSoft, we'll compare the two methods and explore why the SharpeSoft Estimator is the superior option.
Table of Contents:
First: What is Construction Contract Bidding?
The Construction Bidding Process Explained
Estimating Construction Bids By Hand Vs. Bidding Using the SharpeSoft Estimator: Comparing the Two
Method 1: Traditional Bidding by Hand
Method 2: Bidding Using the SharpeSoft Construction Estimator
Why the SharpeSoft Estimator Is Superior
Conclusion
People Also Ask:
What is construction estimation?
One of the crucial steps in the construction project management process is creating a construction estimate, which predicts the cost of building the structure in your project plan.
What is the difference between bidding and estimating?
An estimate provides an approximate cost of a project based on the information available. On the other hand, a bid is a formal and specific offer to undertake the project at a price supported by an itemized breakdown of expenses and conditions. It is important to note that an estimate is not a binding agreement.
First: What is Construction Contract Bidding?
Construction contract bidding is a crucial aspect of the construction industry. In simplest terms, it refers to submitting a proposal for a construction project. This process involves thoroughly evaluating the project scope, requirements, and specifications and requires specialized expertise in construction management and project planning.
Construction contract bidding is highly competitive and demands attention to detail, accuracy, and transparency. Typically, the process involves multiple stakeholders, including contractors, architects, engineers, and subcontractors, who work together to prepare a comprehensive and compelling proposal.
The Construction Bidding Process Explained
As anyone in the construction industry knows, bidding plays a crucial role in securing contracts for new projects. This process involves a lot of moving parts and can typically be broken down into multiple vital steps.
These essential steps include, but are not limited to:
Bid Solicitation - During this phase, the property owner and their representative will issue a project bid invitation. Typically, they'll also request a quote or request a project proposal. Whether the construction project is public or private, the bid package will contain details such as the project requirements and delivery method, construction specifications, contract types, and insurance requirements.
Bid Submission - The bid submission phase usually involves interested contractors submitting documentation regarding the project timeline and costs, along with vital information about their business. General contractors often solicit their own proposals and bids from subcontractors. Then the General Contractor (GC) will combine these proposals to prepare the bid they plan to submit to the property owner. To create and submit an accurate bid, contractors must include project costs like materials, labor, equipment, overhead, and profit margin.
Bid Selection - Regarding bid selections, property owners often choose the bid with the most competitive price. Government rules and regulations typically require that the lowest project bid wins for public projects. Commercial project owners often consider factors like safety records, project experience, and scheduling philosophy.
Contract Information - During this phase, the property owner and the contractor work together to form a contract that both parties agree to and will sign. Contractors will have free range to negotiate the contract terms and the final pricing structure at the point.
Estimating Construction Bids By Hand Vs. Bidding Using the SharpeSoft Estimator: Comparing the Two
The traditional method of estimating construction bids by hand has been reliable for many years, but technological advancements have brought about new options, such as the SharpeSoft Estimator. The question arises: which method is more effective?
Continue reading to learn more.
Method 1: Traditional Bidding by Hand
Before the advent of advanced technology, estimators relied solely on manual calculation to arrive at the projected bid estimate. First, a qualified estimator must understand how to calculate work totals accurately.
Secondly, the estimator must have a complete understanding of the project scope and all of the intricacies involved. The estimator would work out materials and equipment required to accomplish each project component by referencing price reports and labor statistics from previous projects of similar scope.
Next, the estimator would calculate the wage rate for each laborer and factor in overhead costs, insurance, and contingency costs. The estimator would then add all project components to determine the total cost.
This process poses a significant challenge, and the tedium of manually calculating an entire project can stress the estimator, leading to errors.
Method 2: Bidding Using the SharpeSoft Construction Estimator
The SharpeSoft Estimator performs the function of an estimator accurately and quickly. As a premier software tool for estimation functions in the construction industry, it helps contractors, estimators, architects, engineers, and other industry professionals win bids and projects.
The software helps estimate project costs in a matter of minutes. It has preloaded databases of materials, labor, equipment, and rental costs, significantly reducing calculation time.
This technology allows team members to collaborate, enabling contractors to incorporate multiple estimators' inputs on a single project. The SharpeSoft Estimator generates detailed estimated project estimates, track changes in project scope, manage construction schedules, and track project completion.
Why the SharpeSoft Estimator Is Superior
The SharpeSoft Estimator is superior to traditional hand bidding for many reasons: The software is to learn and does not require extensive learning. It is equipped with preloaded resources that make estimation faster and more efficient.
The software is versatile and can be used for small and large projects. It also helps to eliminate human errors preventing contractors or estimators from submitting flawed bids.
Furthermore, the SharpeSoft estimator helps to keep the project budget in check, making it easier to manage construction projects. Multiple construction projects can be managed using the SharpeSoft estimator without losing efficiency, and the software solution allows for a better understanding of project scope and progress.
Conclusion
Estimating construction bids by hand or using automated estimating software like the SharpeSoft Estimator both have their pros. However, the traditional method of doing it by hand can be tedious, slow, and error-prone. Technology such as the SharpeSoft Estimator can help companies bid on multiple projects, speed up the process, minimize errors, and enhance collaboration.
With benefits like these, automated estimating software systems are becoming necessary in today's modern construction industry. The SharpeSoft Estimator is the go-to solution for construction companies looking to increase efficiency and improve estimates for profitable business deals.
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