Does Construction Estimating Software and Takeoff Software Do The Same Thing?

So many people actually confuse construction estimating software with construction takeoff software. They are actually very different in many ways. When you speak about takeoff software, whether being performed with an electronic takeoff system or a digitizer takeoff system, you really are speaking about the quantity of materials, predominantly taken off by area in square feet (or square meters), linear foot (or linear meters), or counting. Some folks actually call that process quantity takeoff. But in reality, you really are speaking of an automated measuring method. However, when you speak of construction estimating software, you really are speaking about the quantity of a material item, then applying a unit cost to that item to come up with an ESTIMATED cost of the item. Once the cost is established, then a marked up price is determined to be the selling price. Some construction estimating software comes with an optional orthographic measuring takeoff component and some others do not.

The main reason why you need to clarify the differences between construction estimating software and construction takeoff software, is that many people think that the takeoff software is estimating software; which is absolutely NOT the case. One just measures orthographic views and the other uses a quantity (determined by manual/automated methods) and then calculates cost. Not all takeoff items entails square feet (or square meters) or linear foot (or linear meters). For instance, you may have an area but need to convert you a different unit of measure (UOM) such as cubic yards, or pallets, boxes, or some other UOM. So when you are thinking about measuring, there are many different other components that MUST be considered before a selling price can be determined.

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Many times, there are smaller contractors that perform specific types of work with a very small or tightly defined scope of work. They actually apply a selling (retail) price (not cost) to a quantity takeoff item since they may have (usually not) some historical prices of past performance to support that unit retail price. For instance, a good example would be a residential painter, drywall, or tile contractor. However, today those type of contractors with good historical cost data are extremely rare today, in any facet of construction. Most use a trial by error method and hope that the negatives don't exceed the positive for jobs they perform and that is a huge financial risk.

So as you can see, there is a real need to clearly define the difference between construction estimating software with construction quantity takeoff software. The next Super Important step for any type of contractor in the world of construction is to focus their internal estimating processes. Those construction estimating processes need to define cost on material and the cost of labor. You can get to a retail price only once your COST is first determined.

Does Construction Estimating Software and Takeoff Software Do The Same Thing?

Http://www.AskTheEstimator.com/ addresses all these issues in depth and in video format, all for FREE. The posting of your questions and our video responses are a FREE service as well. There are various postings that cover how to review a construction estimating software program based on 12 estimating processes. So please visit http://www.asktheestimator.com/2010/09/09/construction-cost-analysis-cost-estimate-labor-material-construction-estimating-software/ to get you onto the right track to Consistent, Profitable and Competitive estimates. Toll-Free 1-888-552-2520

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