Bolster Blog

In-Depth: How estimating software calculates costs - How construction estimating software calculates costs

Written by Bolster | Jan 16, 2022 7:00:00 AM

TLDR

Construction estimating software streamlines the process of calculating costs by using real-time data, differentiating fixed and variable costs, calculating square footage and material volumes, and incorporating overhead. Tools like Bolster also offer interactive proposals, project scheduling, and real-time updates for more accurate and efficient estimates.

The magic behind estimating software

As a residential contractor, I remember the days of scribbling numbers on paper, double-checking calculations, and hoping I didn’t miss anything. Today, relying on traditional methods just doesn’t cut it. That’s where construction estimating software, like Bolster, transforms the game.

These tools are packed with algorithms, databases, and features that simplify estimating, turning hours of work into minutes and reducing costly errors.

How material and labor costs are calculated

Estimating software taps into up-to-date databases of material and labor costs. This means you’re always working with the latest pricing. No more unexpected overruns from outdated lumber or labor costs.

Software like Bolster even integrates AutoCost features to make labor and material calculations more precise. For a deeper dive, you can check out resources on how to calculate labor rates for construction estimates.

Variable versus fixed costs

One early lesson in my career was the importance of distinguishing between variable and fixed costs. Estimating software handles this automatically:

  • Variable costs adjust with project size or market changes, like materials.
  • Fixed costs remain constant, such as permits or insurance.

This ensures your profit margins are protected, even when materials fluctuate in price.

Square footage and volume calculations

Misjudging square footage or concrete volume can turn a project upside down. Estimating software automates these calculations, ensuring accuracy every time. You’ll never need to recalc manually under pressure, saving both time and stress.

Work in progress and overhead

Keeping track of ongoing projects and overhead expenses is another area where software shines. Bolster calculates work in progress and factors in overhead costs like salaries, equipment rentals, and utilities, so nothing slips through the cracks.

Benefits beyond numbers

Accurate estimates are just the beginning. Modern construction estimating software also provides:

  • Interactive proposals: Turn estimates into visually engaging, e-commerce-like presentations for clients.
  • Project scheduling: Stay on top of timelines and reduce delays.
  • Real-time updates: Adjust automatically for design changes or unforeseen issues, keeping your estimates current.

My personal “aha” moment

Years ago, I had a project where the client made major changes midway. Manual estimates became a nightmare. Today, with Bolster, those same changes are integrated seamlessly. This adaptability is one of the biggest advantages of remodeling estimate software.

The future is interactive

Fast, interactive quotes are no longer optional—they’re essential. Clients expect transparency and engagement, and software like Bolster delivers it. From live pricing to instant proposal updates, it’s a competitive edge that small and mid-sized contractors can’t ignore.

Final thoughts

Adopting construction estimating software isn’t just about convenience—it’s about growing your business, reducing risk, and staying competitive. With tools like Bolster, contractors can deliver precise estimates, impress clients, and manage projects efficiently.

In construction, we don’t just build homes; we build futures. Accurate, automated estimating is how you secure both.