Precise estimation is the key for successful project execution
The construction industry counts among the most pivotal and challenging sectors across the globe, incorporating substantial expenditures, dozens of regulatory procedures, labour and weather-related challenges, design hurdles and many more.
With such enormous upfront challenges, infrastructure construction organizations have been battling with dwindling profit margins since long, even after aggressive bidding.
Citing the existing scenario, the construction sector is now eyeing to automate and methodize the tender estimation process for a swift and precise bid delivery.
The process of tendering is extremely crucial to bag a project bid for a construction player as an accurate prediction of the P&L & Cash flow involved with the project.
Since every project is unique, it is a monotonous task to predict the costing of every project as it includes an exhaustive involvement of the project bidding team to come up with the most competitive pricing.
Large projects, on the other hand, come as a daunting challenge to project managers to evaluate an accurate budget, time and cost owing to the complex nature of the projects coupled with uncertainties in the entire project life cycle.
In the infrastructure and construction and domain, timely completion of projects has always been an unresolved challenge.
Budget estimates and work plans in the construction sector are generally chalked out with an objective to garner the desired quality within the scheduled time frame and budgets.
Cost estimation, on the other hand, incorporates collecting and analyzing data for the construction project. This process involves taking into account certain constituents of materials, equipment, labour expenditures etc. as included in the bill of quantities.
Why Tender Estimation Software Is the Need ofthe Hour
The project execution process also includes last minute modifications which require meticulous calculations and periodic analysis of alternative strategies.
Robust tender estimation software empowers a project manager by executing complex calculations, enabling faster bid response rate and streamlining the estimation process.
State of the art tender estimation software also brings in the following strategic benefits-:
● Well organized management of supplier cost
● Increased sales opportunities via faster generation of estimates
● Excellent control throughout the project execution duration via highly accurate estimates of initial budgets
Underestimating is one common mistake which project officials make, linking expenditures with delivering outcomes. This concludes in supporting the culture of ‘’use it or lose it, encouraging spending but not necessarily for the betterment of the project.
Overestimating, on the other hand, involves being unable to use the resources and money as per the pre-decided budget.
Why you should use estimation solution to strengthen bid success
With the deployment of estimation software, businesses can benefit from a 360-degree view of direct & indirect costs related to a project within seconds. The solution also enables businesses to control and optimize all characteristics of cost management.
The new age solutions should furnish accurate project estimation via analysis of numerous cost-related factors and related activities.
With an inbuilt crucial estimation data security aspect, it willalso shrinks bid completion cycle coupled with a swift bid response as well as streamlining of the estimation process.
As every project is bound to witness uncertainties, an automated estimation process helps you perform last-minute modifications conveniently and swiftly. The solution’s high calculation speed also enables quick assessment of alternative strategies.
Keeping an eye on expenditure is important for a business as under or overestimating budget on a project impacts not only the revenue sheets but also its reputation in the market.
A state of the art, end to end estimation solution enables the project managers to bid and execute the project, saving time and operational expenditure.
By Ashok Wani, Head of Technology & innovation, Highbar Technocrat