The Next Step in the Evolution of Estimating
By Giovanni Marcelli

Some of you must remember the early 70s when estimating was done with pencil, paper, measuring wheel, mechanical counter, slide rule for calculations, and the noisy Olivetti adding machine.

Printing neatly was the trade mark of a good estimator and a necessity for others to read the information accumulated during the takeoff process. Numbering the green takeoff sheets and transposing the information to the recap sheets usually organized by system was common practice. Checking and re-checking that everything had been transferred and accounted for and the ensuing process of pricing, laboring and extending was both tedious and fatiguing.

The time and effort required for the writing of the takeoff, plus the manual computation of material costs and labor hours, exceeded the amount of time required to perform the drawings quantification. Extension and recap was a boring process to begin with, a process more suited to bookkeeping staff than estimators, and given that it was usually completed while racing the clock for the bid closing, it became very stressful and more prone to mistakes.

I vividly recall the Commodore digital calculator when it first came out, a marvelous gadget capable of multiplying and dividing and displaying the results instantly on the screen. The hefty price of $160 when a Journeyman electrician earned about $7 per hour did not deter me from acquiring one. It was a relatively expensive tool, however, it was silent and very fast and it made my job as an estimator easier. Little did I know that the digital era had started and what impact it would have on our lives in the years to come.

From there on, digital calculators with paper trail became readily available and more affordable, making the computation and recap process easier, faster and more accurate.

The next evolution was the mini computers and then the revolutionary PC with estimating software that simplified and expedited the estimating process while allowing greater accuracy and details. A job could finally be broken down into bid items, phases, systems, cost codes, and labor codes, and labor factoring could easily be applied for each takeoff line. Still though, all reports were generated by noisy printers sounding like small punch presses.

Today it is hard to imagine having to wait hours or days to have the labor hours or the material cost tallied up and not having all the information instantly available on screen for review, analysis, or changes.

We have made a quantum leap in accuracy and in the ability to generate various breakdowns and reports that are very useful for project management and cost accounting.

Where next? What is the next step in the evolution of estimating?

Well, the next step really isn’t new, since it has been with us for a long time and has been known and adopted by a small number of innovative contractors.

Taking advantage of the CAD drawing file for estimating is going to be the next paradigm shift. The ability it provides to generate electronic quantification in a fraction of the time and effort required in the conventional manner holds a lot of promise. CAD estimating will undoubtedly become fairly pervasive in the not too distant future.

Contractors with great foresight are wisely recruiting young engineers and training them in estimating and project management. These bright young fellows, many of whom already possess significant computer skills, would embrace CAD estimating in a blink of an eye. In fact, these folks will find it cumbersome and counterproductive to estimate the conventional way being aware of the benefits of CAD estimating. The need to entice and retain new talent makes the adoption of CAD estimating even more important and urgent.

The CAD estimating technology has been proven and available for many years, the benefits that it brings are substantial, and it will attract and retain talent in our companies. Why is it then that CAD estimating is not yet widely adopted?

The main reason is the infrequent availability of native CAD files from the engineers.

 Can contractors change that?

Yes, but only if we take full responsibility for the problem and work vigorously with those engineers with whom we have an established working relationship, listen to their concerns, and find a mutually acceptable solution.

We also need to get the various industry associations involved and possibly have Electri International fund an independent study on the matter with the objective of creating awareness and finding a mutually acceptable working arrangement with engineers and owners.

The message that we need to convey is that when the contractor is given the native CAD files, he can perform a more accurate takeoff in a shorter time, produce detailed installation drawings, better identify potential problems or omissions, better perform value engineering, and consequently save the owners money in the process.

To assist in your efforts, we have written a white paper entitled “Overcoming the Obstacles to CAD File Access” which references resources published by the American Institute of Architects. To obtain your copy, email a request to our CAD Integration department at cadinfo@accubid.com.

Meanwhile, those contractors that do design build or are successful in obtaining the CAD files can reap the benefits immediately and gain a competitive advantage until CAD estimating becomes more widespread.

Giovanni Marcelli is chairman & CEO at Accubid Systems.

 



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