Five Disadvantages of Manual Estimating

Estimating is one of the most important steps in the construction industry. This is because:

1. Bids are based off estimating totals and determine whether a contractor is awarded the job.
2. Estimates are used to help contractors determine cash flow and profitability.

With that in mind it’s crucial that estimates are accurate. In the past, estimators performed estimates by hand.

However, as construction projects become more complex and companies take on more project volume, traditional manual estimating can become time-consuming and lead to costly errors.

In this blog, we will explore the common pitfalls of manual estimating in construction and how construction estimating software can provide a more efficient, accurate and reliable solution.

Key Takeaways

• Manual estimating opens the door for costly errors and is more time-consuming than using construction estimating software.
• Construction estimating software provides real-time data and reporting to help contractors make more informed decisions.
• Construction estimating software can automatically account for change orders, material price changes and labor rates based on location and trade.
• By investing in construction estimating software — like McCormick — contractors can build accurate estimates faster with automated, trade-specific features.

Pitfalls of Manual Estimating

There are several disadvantages of manual estimating including:

1) Time-Consuming and Labor-Intensive

Manual estimating involves gathering data, inputting it into spreadsheets and making calculations by hand.

For construction professionals, the manual construction takeoff process can be time-consuming.

For a single project, this might not seem like an issue, but for large construction companies working on multiple projects at once, the time spent managing estimates can add up quickly.

If a company is working on a few projects simultaneously, contractors must review:

• Multiple plans
• Measurements
• Material lists

As projects become more complex, estimates may need to be revised frequently, which only adds to the administrative burden, opening the door for delays and costly mistakes.

2) Human Error

Estimating involves complex calculations and coordination of many different project-specific variables. Without accurate measurements, it’s impossible to create accurate projections.

Even a minor mistake — such as an incorrect material quantity or a simple data entry error — can throw off an entire estimate.

Unfortunately, human error is an inherent risk in any manual process, and it can result in significant construction estimating issues. A miscalculation in the estimation process can lead to underestimating costs, which could cause budget overruns, or overestimating, which could make a bid uncompetitive.

Additionally, tracking down the error(s) and creating a solution that minimizes further unnecessary costs can be a time-consuming process.

3) Inconsistent Estimates

Without a standardized construction estimating software, estimating can be inconsistent. Different estimators may use varying methods to:

• Calculate costs
• Measure materials
• Estimate labor hours

These inconsistencies can lead to confusion and discrepancies, especially when a construction company has larger teams or is working on multiple projects simultaneously.

Additionally, inconsistencies can make it difficult to compare estimates across similar projects.

4) Difficulty in Tracking and Revisions

Construction projects often experience changes during the planning and execution phases, whether due to unexpected site conditions, material shortages, or shifts in project scope. These changes can impact both current and future estimates.

When changes occur, estimators must manually update various elements of the estimate, sometimes going through the entire process again. For larger projects, this might mean:

• Recalculating and remeasuring all or more areas of the project
• Revising equipment costs and labor schedules
• Reevaluating material costs

Attempting to track these revisions and ensuring that all stakeholders are aware of changes can be a logistical nightmare when relying on paper-based systems or spreadsheets.

5) Lack of Real-Time Collaboration

Real-time collaboration is essential to success, especially on larger projects with multiple teams.

Manual estimating methods often require estimators to work in isolation, only sharing results once the estimate is complete.

This delay in communication can lead to missed opportunities for input from project managers, architects, engineers or stakeholders.

Without the ability to collaborate in real time, misunderstandings can arise, which can impact the final budget and timeline.

Sharing spreadsheets or paper documents can result in version control issues, where team members may work with outdated information or miss crucial updates. This can lead to more errors, unnecessary construction costs and project delays.

How Construction Estimating Software Can Help

Construction estimating software can address many of these pitfalls by automating and streamlining the estimating process throughout the entire project lifecycle by:

1) Increasing Efficiency

One of the most significant advantages of using construction estimating software is the ability to automate time-consuming tasks. With advanced software tools, estimators can create detailed cost estimates and perform digital construction takeoffs more efficiently.

Estimating software allows you to quickly import project plans, specifications, and other data sources, and instantly calculate material and labor costs based on predefined, trade-specific templates and historical data from past estimates.

Construction estimating software can also integrate with other project management tools, such as project management or accounting software, providing an end-to-end solution for cost tracking, scheduling and management.

2) Improving Accuracy

Construction estimating software significantly reduces the risk of human error by automating calculations and limiting duplicate data entry. The software can also account for:

• Material price changes
• Labor rates based on location and trade
• Change orders

Additionally, if changes to the project occur, the construction estimating software can instantly update all relevant calculations and provide a revised estimate in real-time.

This level of precision and adaptability is impossible to achieve with manual systems.

3) Standardizing the Estimating Process

Using construction estimating software allows for greater consistency across projects, as estimators can work from standardized templates and processes.

This ensures that all estimates follow the same structure, making it easier to track performance across the organization.

4) Simplifying Collaboration and Communication

Most modern construction estimating software includes cloud-based functionality, enabling real-time collaboration among team members, regardless of their location.

It also allows multiple users to access the same estimate, make updates and provide input in real time to improve communication.

With centralized data storage, all team members are accessing the same information, eliminating the confusion that comes with version discrepancies in spreadsheets or paper documents.

5) Refining Tracking and Reporting

Construction estimating software simplifies revision tracking, allowing you to maintain a clear record of changes to the estimate.

Changes can be automatically logged, providing a detailed history of the estimate. Additionally, the software can generate detailed reports, offering insights into:

• Project costs
• Potential savings
• Areas where efficiency can be improved

These reports make it easier to analyze project budgets and compare estimates to actual costs, helping contractors make informed decisions for future projects.

Build Better Estimates With McCormick

Manual estimating, while once a common practice in the construction industry, has significant drawbacks in today’s fast-paced, complex projects.

From time-consuming calculations to human error and inconsistent practices, relying on traditional methods can lead to inefficiencies, cost overruns and lost opportunities.

Construction estimating software — like McCormick — addresses these challenges by providing an automated, accurate, and collaborative environment for building mechanical, electrical and plumbing estimates.

With McCormick estimators can:

• Perform takeoff and estimating within the same software
• Leverage real-time data and reporting to create more detailed estimates
• Access trade-specific databases
• And more!

Replace time-consuming manual estimating with McCormick! Speak with a specialist today!