Posts Tagged ‘Costs’
Construction business management software helps owners analyze costs and be more competitive
www.maxwellsystems.com Construction software for job cost accounting, estimating, and project management that brings it all together in one solution is an invaluable resource for Mid-State Paving & Excavation, explains owner Steve Wagner. This sitework contractor utilizes Maxwell Systems ProContractorMX as a single solution for end-to-end control of critical business operations. Levering this complete construction software solution, Mid-State can be a better company with the ability to analyze costs and be more competitive.
Pre-design, Design & Detailing costs of constructing Steel structures
Reducing the production costs of the Steel structure is crucial in the complete development of a building or industrial structure. To find out possible cost savings, the engineer needs to have thorough knowledge about costs of Steel construction and software that helps him prepare an estimatation.
Design costs involves three components:
1) Pre-design cost
2) Shop design cost
3) Steel Detailing and working drawing costs
In the pre-design stage most of the time and efforts are required for main frame design and the stability analysis of the structure. The structural engineer focus only on connections that affect the stability of the structure. This includes rigid or semi-rigid connections with basic calculations.
In shop design stage the engineer needs to detail all the beam-column-end plate connections that affect the stability of the steel structure in detail.
In steel detailing stage the steel detailer or draftsman dedicate most of his time on detailing connections in the steel structure. Advance CAD tools such as Tekla (previously Xsteel) and AutoCAD with their 3D modeling and automization capabilities help draftsman to set up the steel frame. Detailing of other connections and printing and plotting of the drawings is carried out subsequently.
Use of 3D Modeling for detailing steel structures has become the standard worldwide. The 3D system comes with specific modules dedicated to each job such as pre-design, detailing, erection schedule, etc to help detailer reduce production time and cost. At present these systems are mainly used for the detailing and sometimes for estimating. Two main benefits include:
1) The fabricator gets a clear understanding of what is estimated – resulting in less errors
2) 2D shop drawings can be generated automatically
3} Connection design with 3D analysis help detect clash
Promoting the advance technology in steel design makes the fabricator more competitive. The above mentioned advantages helps fabricator reduce delivery schedule, improve design quality and overall profitability.
Should have any queries or want more information related to Structural steel services email us at info@outsourcingsteeldetailing.com We would love to understand your requirements in detail.
James Lee is a steel detailer at Outsourcing Steel Detailing firm which provides quality structural steel services, steel design and structural shop drawing services to its offshore clients based in US, UK, Canada and Australia. For further details visit us at http://www.outsourcingsteeldetailing.com
Estimating Residential Construction Costs
In the business of residential construction there is a serious problem with projects being underestimated, resulting in little to no profits for the building companies. It can seem as though no matter how meticulously they work on accurate data collection, money seems to go like water through their hands. In such a highly competitive price related industry, it’s vital for contractors to acquire expertise for creating accurate estimates. To be best understood, the process of producing a quote can be divided into two areas; typical residential costs and potential costs.
Firstly a contractor must calculate the costs for anything that comes under the heading of typical residential construction costs. The location and environmental costs are a large part of this, and contractors should always survey the residential block prior to
commencing. This will enable them to assess things like whether the land is wet or dry and any money that needs to be allocated for demolition and removal of debris.
A quotation for a residential building estimate should give accurate details about how much the construction will cost to build according to the plans supplied. This means data must be compiled to cover laying a foundation(concrete, footings, slabs, columns and associated machinery), heating or cooling systems for the home and framing and flooring(walls, roofs, floors & floor coverings, ceilings etc). The exteriors and interiors include any materials used to cover the inside and outside of the building such as bricks, paints and built in cupboards and cabinets. Windows are just as important when it comes to quoting accurately, and contractors can sometimes forget about the extra wood used for their installation along with other hardware.
Electricians and plumbers can be tricky when it comes to accurately forecasting the cost of their work. They are also working off estimations, so you need to have confidence in their ability to give accurate quotes include lighting fixtures and plumbing fixtures like toilets and showers. Appliances are presumed to be included in residential construction estimations, so quote for items like dishwashers and garbage disposals, and be willing to include any extra’s the customer requests.
The area of other costs can be devised after the contractor has investigated all the typical costing data. Other possible costs to be included in the residential construction estimate can include preparation of the site, permit applications, demolition/debris removal or landscaping. Any changes requested after the plans have begun to be executed can be added if they have been approved by the appropriate executives.
It is impossible to get an absolutely accurate figure for the exact price of building a residential home. Every contractor is more than aware of the possible variables that can interrupt the expected flow, and for this reason always include escalation, contingency reserve and market update allowance clauses in the quotations.
To enable residential construction estimates to be more accurate and less complicated, do the company and contractors a favor and buy some construction estimating software. Estimates will be immaculate, organized and scheduled in advance so plans go ahead without any problems, and they will look professional and impressive as well. Seriously save time and money and get in synch with the ebbs and flows of your business through live updated data for analysis on how projects are currently running and ways to improve for future ones.
Nick Hurd is the developer of LiteningFast Estimating. LiteningFast is an estimating program that helps you estimate faster, easier and more accurately. It’s integrated with QuickBooks to provide job cost. You can find more information at construction estimating. You’ll be glad you did. It was introduced to tbe market in 1994 and currently has over 3,500 users in the US, Canada, and around the world.
Using Technology in Estimating Construction Costs for More Accuracy
A construction cost estimator knows that there are a lot of expenses that need to be tracked when estimating a job. Many people who have been in the industry for a long time have always relied on pen, paper and a calculator to estimate a job. They feel that their experience in estimating out weighs the convenience of the new software programs. However, what they do not realize is that using this software can save them a lot of time and headaches.
Projecting Construction Costs Is The First Step To A Successful Project
There are a lot of costs that have to be considered when estimating a job. Both the seen and unseen cost can delay a project if they are not calculated correctly. Land acquisition, as well as assembly, holding and improvement are just a few of the things that need to be taken into consideration. Others include Planning and feasibility studies of the structure; capital costs for a construction project are just a few of the costs that need to be considered.
You will also need to take into consideration the financial fees, which include filing fees and architectural and engineering design. These factors need to be taken into consideration before you can estimate any other part of the project. When you have these
numbers, you can then go on to add the construction cost, labor and materials, insurance, taxes equipment and all of the other factors that will make up your bid or proposal. You have to take into consideration that maintenance costs will be a big part of your expenses. It is critical that you account for all maintenance costs in your estimate. This includes the operating staff, land rent, periodic renovations, labor and material for maintenance and repairs, insurance and taxes, financing costs, utilities. There will be other expenses that you will need to deal with as they pop up, however, with the estimating software; it will not be a problem.
Construction job come in all sizes, and there are factors that need to be taken into consideration such as the location of the job and the efficiency of the management team. There a just so many things that needs to be figured into an estimate, that it will
continually be revised if you do not have the experience or the software to create an accurate estimate.
When it comes to vendors, there will always be something that has come up that will delay your project. This is a given in the construction industry. It has caused many estimators to create a back up plan when they are estimating a job.
An experienced estimator will allow for all delays and have a contingency plan that will allow the project to move forward without delay. They will always set aside a certain amount of funds that will allow construction to continue to insure that their deadline is
met without the frustration and headaches that vendors can cause.
The size of the contingency should be based upon the size of the job. An experienced estimator will have the knowledge of roughly how much each sized job will cost and base his or her contingency on that. If all goes off without a hitch, there will be an excess of funds to use for addition work or anything else the client wants to do.
Nick Hurd is the developer of LiteningFast Estimating. LiteningFast is an estimating program that helps you estimate faster, easier and more accurately. It’s integrated with QuickBooks to provide job cost. Using Technology with Construction Cost Estimating – for more accuracy It was introduced to the market in 1994 and currently has over 3,500 users in the US, Canada, and around the world.
Estimating Construction Costs Requires Skill and Accuracy
The major part of an estimator’s job obviously is estimating job costs. In the past, doing this manually left marginal room for error. Today, with technology evolving everyday, software has been developed to reduce the chances of input error. The software offers an assortment of different templates that allow you to enter your costs, inventory and even profits. This allows you to give a more accurate estimate without leaving the jobsite. With this software, what used to take hours and even days to complete can now be completed in a fraction of the time. The software programs can be learned in a short amount of time, and are made so even those who are computer illiterate can learn them.
Estimating software allows your business to operate on a higher level by making it look more professional. You are able to estimate jobs faster and more efficiently. Your business will have the appearance of stability and competence. Changes on a jobsite occur often, and in the past, when the changes occurred, it would cause the estimator large amounts of stress adding or subtracting from the estimate. With estimating software, the estimator can adjust the estimate with a few clicks of the mouse within minutes. This saves a lot of time. You can make the changes right on the jobsite and print them out for the customer to sign. It is just that easy.
There are several software programs on the market today to assist you in estimating your project. However there are few features that the software must have in order to give an accurate estimate. The program must be able to allow you to break down each of the costs including inventory labor and profit. This is important to allow you to create an accurate estimate. Having a program that contains a separate vendor list is also a key feature. A good estimating software program should assist you in understanding all aspects of your business and will allow you to save time and money. When you are able to check your
profit and loss statement within seconds, you may be able to offer a potential client rebates and discounts. This could mean the difference between getting the client and losing them.
By using the estimating software, you may be able to surpass your competition in the customer service aspect of construction. You will look more professional and up to date with the times. It makes the process of estimating look like a walk in the park, and can save you a lot of time and money and may also assist you I generating more business.
Nick Hurd is the developer of LiteningFast Estimating. LiteningFast is an estimating program that helps you estimate faster, easier and more accurately. It’s integrated with QuickBooks to provide job cost. Construction Cost Estimating – must be accurate to make money It was introduced to the market in 1994 and currently has over 3,500 users in the US, Canada, and around the world.
Hidden Costs of Construction Software
The cost for new construction software is not as obvious as you might think. While the price for the software itself is usually stated up front, there are a number of “hidden” costs associated with buying new software that aren’t always talked about. These costs, which can be hard dollar expenses or less tangible economic expenditures, should be factored in to arrive at your true cost for new software
Here are five “hidden” costs associated with construction software.
1. Training and Implementation Costs
Construction software buyers are often naive about training and implementation costs, which are usually a 1:1 ratio to the software cost. (This means that a $10K system will probably cost about $20K by the time training and implementation expenses are added in.) The more complex the software system is, however, the higher the ratio will be. The ratio for these costs can go as high as 1:5 or even 2:1 for systems on the highest end of the complexity scale. One of the biggest mistakes made, especially by smaller companies, is to try and save money by skimping on training and implementation assistance. Not planning for this cost almost always comes back to haunt you.
2. Staff Upgrades
Although existing employees are usually expected to operate new construction software, sometimes it’s necessary to hire people with greater skills to run the system. If this happens to you, expect increased payroll expenses. As part of the software evaluation process, you must evaluate your staff capabilities carefully if you wish to avoid this “hidden” cost. Who seems confident and ready to take on a new system and who is frightened or holding back? The competence of your staff and their willingness to learn the new system are every bit as important as the software itself.
3. Ongoing Maintenance Costs
Once you buy construction software, you will most likely incur an annual fee by your vendor for maintenance. Annual software maintenance fees usually cost between 18 and 24 percent of the software price. But there are other, “hidden” maintenance fees to be aware of such as paying to having custom reports written. Put money in your budget for these items so you’re not taken off guard when the bill comes in!
4. The Cost of Buying Wrong/Less-Than-Optimum Software
Although buying the wrong software, or a system that is less-than-optimum for your needs, is not a true out-of-pocket, measurable cost related to construction software, it is a real expense. Suppose, for example, that certain types of ongoing transactions are very cumbersome to perform in your new system and take an extra hour per week to do. This drags down staff efficiency and adds to their frustration. Another example would be running a project management system that’s not integrated with accounting. This will require duplicate data entry to keep both applications synchronized. Consider these “hidden” costs and avoid them if possible.
5. Spreadsheets
Another “hidden” cost of construction software relates to employees using special spreadsheets to manage data because they don’t like the way the new system performs. For example, if the equipment module lacks certain features for maintenance scheduling, your staff will be tempted to use spreadsheets as a workaround instead of trying to make the software work. Another common example is using a custom spreadsheet for estimating rather than an industry-specific estimating program. Work toward eliminating spreadsheets.
No Cost Surprises
Taking a realistic look at the true costs associated with new construction software will save you from surprises down the road. Training pays for itself very quickly and various maintenance costs protect your investment. Wean employees off their favorite spreadsheets and focus on using your new software to increase efficiencies throughout your organization.
