How Much Does Construction Estimating Software Cost?

How Much Does Construction Estimating Software Cost?   

There are endless benefits to acquiring dedicated construction estimating software, from accurate estimates to significant cost savings, but one of the drawbacks that may stop a construction business from investing in estimating software is the initial cost involved. 

The estimating software market is a crowded one, with a huge range of pricing and package options that reflect the variety of businesses and budgets found within the sector – from small builders to tier-one enterprises.     

This guide will look at how much construction estimating software costs, including:  

• Pricing models 
• Included features 
• Additional costs 
• Free options
• ROI 

What is construction estimating software?  

Construction estimating software is either cloud or desktop-hosted technology developed specifically to help estimators create detailed and accurate cost estimates. Core estimating software will generate bills of quantities faster and more accurately than paper-based methods and Excel spreadsheets.  

Estimating software can range from basic estimate templates through to feature-rich solutions built to handle complex builds across multiple teams.   

Some solutions are also built for specific trades such as M&E with specialised materials libraries and templates.  

What does the cost of construction estimating software include? 

There is a wide range of estimating software on the market covering a range of needs, features and target customers.  

Many products presented as estimating software also include features beyond building a BOQ, such as takeoff and bidding management. 

When looking for an estimating software solution, it is best to keep in mind what is included in the price listed on the website (if one is listed). 

Estimating software packages may or may not include: 

• Implementation costs 
• Training costs 
• Hosting costs 
• Additional/add-on module or feature costs  

Implementation costs 

Most estimating software can now be deployed online with a simple download, but larger and more complex products may need an on-site deployment which will be built into the initial cost of the software.  

Training costs 

Even intuitive and easy-to-use software needs to be taught to new users. While training libraries will be available for most products, some estimating software will also include on-site or online training for estimating teams who will be using the software. It is also important to make sure that users have a full sense of every feature provided by the software and that estimators are getting the most out of your chosen solution. Training may come at an additional initial and ongoing cost.   

Hosting costs 

Cloud-based software costs will take into account the cost of hosting your data on a secure server. Extra costs may also cover disaster recovery, backup and security features that will protect sensitive estimating data and protect your business from data loss if there is an IT failure within your business or the software itself. Extra data storage may also be offered as additional fee.  

Add-on features 

The majority of estimating software will have a ‘core’ product on offer followed by a range of add-on features or modules at an extra cost. These additional features may be worth the extra cost involved, or may already covered by your technology stack. When researching, it is worth looking if you want other parts of your estimating process, such as takeoff, covered by software. You may end up making significant cost savings by adding additional features to your chosen estimating software solution instead of purchasing multiple contracts.  

Construction estimating software pricing models 

Due to the huge range of estimating software on the market, there are also a range of pricing models for software. 

This includes: 

Tiered pricing 

This software comes in a range of packages suitable for different sizes of companies, from sole contractors or freelance estimators through to tier-one enterprises. Each package will typically include more features and user licenses which are relevant to the target audience as you go up a tier. 

Cost per-user pricing 

Many construction estimating software packages will come with a certain number of user licenses. For some companies, it may be useful for several staff members to have access to the software beyond estimating, such as those in the finance and management team.  

Some software may also sell lower-cost ‘read only’ licenses for those who just need an overview of the data and reporting within the software but do not need to use the functionality.  

Single license  

Some companies offer their product as a single license, sold at a higher initial cost which is then owned outright by the user. This is a more traditional software pricing format which has risks associated with the software becoming outdated or unable to run on new IT systems.   

SaaS pricing  

The ‘software as a service’ model involves ‘renting’ a license on a month-by-month basis. Estimating SaaS is usually fast to implement and cloud-hosted. However, the monthly cost will tend to increase as companies grow, more licenses and features are added, and costs of the software itself increases with economic trends such as inflation.  

What affects the cost of construction estimating software? 

There are three main factors which will impact on the cost of your estimating software –  

The number of users  

Depending on the pricing model, the total cost of your software will depend on the number of licenses you need. There may be discounts available with multiple license purchases.  

The amount of features included  

If your chosen vendor has a tiered pricing model, it is well worth noting the amount of features you are paying for. When it comes to estimating software, the price will increase with features such as 2D and 3D takeoff, online enquiries management or even access to specialised pricing libraries  

The method of deployment  

The majority of estimating software can now be deployed online, but larger and more complex builds may need to be deployed locally on-site at an extra upfront cost. This is more common with a single license pricing model.  

Is there free construction estimating software? 

Some solution providers advertise their estimating software as ‘free’. More often than not, this is the description of a limited free trial, or a ‘freemium’ version of a piece of software with very limited features.  

There are also ‘open-source’ estimating software projects available to implement, but these usually need an in-house software developer to adjust the software to a companies’ specific needs. This can prove an expensive resource.    

Open-source software also remains free because there is no customer service available, instead relying on community support from fellow users and developers to answer questions and overcome snags when using the software. 

Considering the ROI of construction estimating software 

Construction estimating software will produce a high ROI soon after launch. While pricing can be a sticking point when considering software, it is best to make sure your construction estimating software gives you the most “bang for the buck”. Here are some factors to consider when buying construction software and the ROI it can provide and ensure you don’t pay too much for a product that doesn’t do what you need it to –  

The scale and value of your projects 

Are you working on smaller projects or builds costing upwards of a million pounds? Large multi-stage builds will mostly likely require construction estimating software which is rich in features and functionality.   

The number of additional projects you can bid for 

One of the leading advantages of construction estimating software is increasing the amount of bills of quantities you can generate due to time saved in the estimating process. The increased accuracy of your bids will also help increase your bid-to-win ratio, driving growth for your business.  

Accessibility of your software 

Consider the accessibility of the product you choose, such as whether it can be hosted on Mac or Windows systems, the size of the product, whether the product can be used both online and offline etc.  

Make sure the product you choose fits in with your IT setup and how your estimators work to ensure you get the best ROI from your software.  

User experience 

It is likely that members of your team will be using your estimating software every day, so it is important to ensure that the product you choose has an excellent user experience that your team finds easy to navigate. Does the software work smoothly? Is it designed to be intuitive? Will new team members pick up the software quickly? 

Richness and variety of functionality  

Sometime low-cost construction estimating software can look like a good choice, but eventually the ROI of the product is lost due to limits on functionality. Due to development costs, higher-cost software will often have a wider range of functionality, access to larger price libraries, and the ability to manage more complex builds than low-cost software.  

Customer support 

Whatever the quality of product, there is a chance you may need customer support at least once in the run of your relationship with your software vendor. If you run into an issue with your software, quickly need to sort out an additional license or require reactive troubleshooting, it is important that you purchase software with a professional reputation and robust customer support.   

Additional content and support  

Is there additional training, insight, thought leadership or on-demand webinars available? Is the vendor providing added value to your software purchase which will help you stay ahead of competition?