I come from a generation of electrical estimators whose main weapons were pencil, paper, and good old-fashioned experience. However, I have seen how technology – sometimes intrusive and other times indispensable – has enabled software estimating professionals to deliver results more rapidly, more accurately and more competitively than at any other time in our industry’s history. I still believe in the know-how of the experienced estimator, but I also believe that overlooking the opportunities presented by emerging technologies is a mistake that will cause many companies to be left in the dust as the rest of the industry surges forward. Advances in technology have always been pervasive in our industry. Years ago it was the move from DOS to Windows; today we see technology taking on exotic acronyms like BIM ( Building Information Model ) and SaaS ( Software As A Service ), or introducing concepts such as digital imaging or collaborative online takeoffs.

As with any new way of doing things, adoption of these techniques will not take place overnight. In fact, it could literally be years before some of these technologies experience widespread acceptance, never mind achieving sufficient popularity to become the industry standard. That said we need to consider the merits of each new technology now, or risk being left behind as the industry moves forward. With this in mind, let’s take a look at a few of the technologies we can expect to gain in popularity over the next few years. BIM is nothing more than a digital representation of the building process. This allows architects and engineers to share a standardized model of the project, and contribute their own information to it without the risk of information loss that typically occurs when ownership of a project changes hands. This technology is expected to greatly reduce the potential for error in the design and construction phases of the project by identifying conflicts early.

That all sounds great, but the truth is that BIM will never replace an estimator. BIM may be a fine engineering tool, but engineers are not estimators. Estimators make changes to nearly every set of plans they encounter, usually in the interest of saving money. For example, an engineer will show a conduit run from a rooftop unit back to its source (power panel, control center, etc.). In this case every unit has its own cable and conduit. As estimators we will generally combine the units with their individual sources to generate cost savings. If we estimated based on the engineer’s original plans we’d bid ourselves right out of business. Ultimately BIM may speed up the estimating process but it will never eliminate the estimator.

Another recent development related to BIM is the ability to perform a takeoff in 3D. Frankly, I don’t see the benefit of this technology as it relates to the electrical estimator. A two-dimensional drawing is perfectly capable of conveying the necessary detail to generate an accurate estimate. Perhaps moving to a third dimension could help in visualizing the lengths and number of drops, but there are no inherent limitations to a 2D drawing that prevents the estimator from determining this information.

On the other hand, one development that I do see as helping the industry is the use of digital imaging as an extension of AutoCAD counting. The upside to digital imaging for the user, for example, is that they do not have to master AutoCAD, which generally requires extensive training. In addition, architects are often unwilling to release their intellectual property (i.e., their original drawings in AutoCAD format) making the barrier between estimators and architects nearly insurmountable. However, most architects will release a digital image in lieu of the AutoCAD drawings themselves. This rasterized version of the drawings is more than sufficient to allow the estimator to perform on-screen takeoffs of those projects. Still, we should bear in mind that while AutoCAD and digital imaging get better each day, neither is completely 100% accurate, and neither is likely to be in the foreseeable future.

A natural outgrowth of digital imaging (and advances in Internet capabilities) is the advent of online plan rooms and collaborative estimating – estimators working on the same project from different locations, reviewing and revising drawings as they go. Estimators will no longer “check out” drawings…they will work on them collaboratively with other estimators, unrestricted by geographical location. This will require an evolution of the underlying software from a desktop-based model to an Internet-based ASP model. Currently, the available bandwidth and throughput speeds over business-level Internet connections are not quite up to this task without a serious degradation in performance, but the technology is rapidly approaching the point where, within the next five to ten years, we will be able to run these types of collaborative applications at acceptable speeds.

The framework that will support many of these emerging technologies is SaaS. Under this model, companies such as yours do not purchase software that you install and manage locally – instead, the software will be hosted by the developing company and you will purchase the right to use it as a service, probably on a subscription basis. Data is typically stored off-site rather than on your hard drive. You would likely maintain your own backup for security purposes, but for day-to-day work you would access your information primarily over the Internet. Like the other emerging technologies we’ve discussed here, I expect it’s going to take a considerable amount of time for company owners and estimators to accept, much less embrace these kinds of changes. As with any adoption of new technology and culture, it’s a learning process that will take time. But inevitably, it will be the way things are done.

When I first got into this industry more than 40 years ago, it was all about generating an estimate manually and then checking and re-checking your materials and your costs to arrive at a price you could both live with and live up to. Today’s computers are getting smarter and becoming capable of taking more of the workload off the estimator. This is the essential added value of technology. Any time a computer can take on more of the grunt work it leaves the estimator with more time to introduce value engineering into a project, more time to evaluate high risk factors and more time to find areas where the company can save on costs. In fact, technology enables an estimator to know when to say no. Instead of taking jobs at a loss and not foreseeing that loss until the end of the job, an accurate estimate can show you those unappetizing numbers up front, allowing you to back off the job before it’s too late. And that frees you up to take on the jobs that are going to make you money.

In the past, contractors looked at their bottom line, saw a profit, and assumed they were doing everything right. Now we want to refine that process and determine what we can do even better. That question will be answered, in great part, by your ability and experience as an estimator. But don’t overlook the potential that new technologies bring to analyze and streamline your estimating work. Your company’s continuing prosperity depends on it!