Estimating construction project costs accurately is crucial for contractors to be profitable. However, traditional manual estimating methods can often lead to inaccuracies that negatively impact the bottom line. This case study details how a medium-sized general contracting firm improved their estimation accuracy and efficiency by adopting specialized AV estimating software.

About the Company
ABC Construction is a regional general contractor based in California that specializes in commercial and industrial building projects. Founded in 2005, they have grown to employ over 50 people and complete 10-15 projects per year ranging from $500,000 to $10 million in value.

Like many contractors, ABC had relied on manual take-off and estimating methods using blueprints and architects' plans. While their experienced estimators were knowledgeable, it was difficult to account for all variables and keep pace with tight bidding windows. This often led to underestimated bids that resulted in losses or change orders to cover unforeseen costs. The company realized it was time for a change to stay competitive.

The Decision to Adopt New Software
ABC's leadership team began exploring automated estimating solutions in 2018 as a way to improve their process. They wanted software that could:

Digitally take off quantities from plans much faster than manual methods
Automatically generate accurate take-off reports
Provide built-in cost databases to price out labor and materials
Allow "what-if" scenario modeling to stress test estimates
Integrate seamlessly with other business systems like accounting
After reviewing options, they selected AV Estimating based on its versatility for different project types and reputation within the industry. The program met all of their requirements at a reasonable price point. ABC was eager to see how it would impact their workflow and bottom line.

Implementation and Training
It took about 6 weeks to fully implement AV Estimating at ABC. This included:

Importing design files and establishing a template library
Configuring cost databases and custom assemblies
Training all 5 estimators on using the basic functions
Additional advanced training classes for estimators
Integrating the software with their accounting platform
The implementation process went smoothly thanks to support from AV. All staff quickly got comfortable with the core estimating tasks like digital take-offs, assemblies, and reporting. It took additional practice to master more complex features and modeling techniques. Leadership was pleased with how rapidly the team adapted.

Measuring the Impact
Once fully operational on several live projects, ABC began tracking key metrics to quantify how AV Estimating was affecting their business:

Improved Accuracy
By leveraging the automated take-off and assembly functions, estimates were within 1-2% of final costs on average. This was a big improvement over manual methods that often missed the mark by 5-10%. Fewer disputes and change orders followed.

Increased Throughput
Estimators were completing take-offs 2-3x faster than before. This freed up more time for value engineering, sensitivity analysis, and pursuing more bid opportunities each month.

Happier Clients
Clients appreciated the level of detail and contingency modeling in AV-generated estimates. They felt more confident in ABC's proposed budgets which led to more contract awards.

Reduced Risk
With better visibility into material quantities, labor hours, and job variables, ABC was less likely to accept loss-leading work. Bids were priced aggressively but not unsustainably low.

Positive ROI
The initial investment paid for itself within 18 months through increased profits on fixed-price work and pursuing more projects overall. Staff productivity gains provided ongoing benefits as well.

Continuous Improvement
As estimators gained experience, they were able to develop custom assemblies, link drawings to cost data more efficiently, and analyze "what-if" scenarios even quicker to refine estimates.

Conclusion
In implementing AV Estimating software, ABC Construction was able to tangibly improve the critical components of their estimating process. They won more work through higher quality bids completed in less time. Underestimated jobs became a thing of the past. The results have strengthened ABC's reputation for accuracy and helped fuel continued growth for the firm. Other contractors can achieve similar gains by modernizing their approach with specialized construction estimating solutions.

Read Related:- https://avtweeps.blogspot.com/2023/11/Understanding-AV-Industry-Standards-A-Comprehensive-Overview.html