What is Software Advice?

Software Advice is a service that provides detailed reviews and research on thousands of different software every year. They provide free telephone consultations to buyers to help them build a list of systems that meet all of their needs. Software Advice leads the world in information technology research and is the top advisory company for solutions like On-Screen Takeoff Software.

Each year, Software Advice is contacted by hundreds of prospective construction estimating software buyers asking for help selecting the right tool for their business. With this unique insight Software Advice can market trends and industry specific needs of each buyer.

Software Advice analyzed random samples of different interactions they had with their buyers with small to midsize businesses from this past year in an effort to better understand common pain points that drive their search and what functionality they want in new solutions.

This will be the third year in a row that Software Advice has conducted an analysis of construction software buyer consultations.

Key Findings from Buyer Report:

  • Most firms want to improve estimating and project tracking.
  • People want functionality that support processes over the entire course of the project’s life cycle.
  • SMB construction software buyers adopt software into their business slowly.

Most of SMB Buyers are purchasing Construction Estimating Software for the first time.

Despite having a variety of tools and solutions available on the market, 50% of the sampled buyers currently use manual methods like spreadsheets or pen to paper. Various tasks can be performed by hand, from calculating takeoffs to preparing bids and managing projects.

Of those sampled, 13% are using non-construction software, things like QuickBooks and simple solutions that track projects and manage their financials. Most people seem pleased with their current method, only a quarter of the buyers sampled are actively looking to replace their existing construction software. (Around 26%)

These buyers are typically from small construction companies ($5 million or less in annual revenue). The majority start their business by using manual methods but ultimately find that spreadsheets/pen and paper can’t properly sustain their business.

Top Reasons for New Software:

Desire to Improve Estimating & Takeoff and Project Management

Christian Burger, president and founder of Burger Consulting Group, a consulting firm that specializes in technology for the construction industry, said that there are 3 main causes that push a company to use construction software.

  1. Company Growth: This is where a contractor needs a better way to manage the increasing number of jobs they have.
  2. New People: Where the firm realizes they need to standardize their processes.
  3. A Mistake: This is something like a claim / suit where the firm shows they need to find a better or more disciplined approach to managing their projects.

The 3 reasons align perfectly with the pain points cited by the buyers in the sample provided by Software Advice. Their purchase drivers usually center around two departments within a company, Takeoff/estimating and project management (PM).

Takeoff and Estimating

One third of the sample provided by Software Advice said that they were looking for software that reduced the time required to perform functions. An additional 15% are investigating software solutions that can increase the accuracy of their bidding process.

For companies looking to upgrade their business but are worried about investing their time and money in a construction software that doesn’t work for their business check out our article on the Top 3 Best Construction Takeoff and Estimating Software for 2016.

Project Management

24% of the buyers sampled by Software Advice are looking for software that provides better project tracking, particularly when information is requested (RFIs) and change orders.

20% of the buyers want a solution to automate and standardize their process.

Top Requested Capabilities include:

  • Estimating – 60%
  • Takeoff – 40%
  • Accounting and job costing – 37%
  • Project tracking – 34%

Each of these capabilities are critical for a construction company but they won’t always be found in the same solution.

Burger said, it’s much more likely for takeoff and estimating, or project tracking and accounting, to be integrating in the same solution, while it’s less likely that project tracking and estimating would be found together.

“Normally in a construction company, the estimating department is a unique department. And they do all the bidding, they do the takeoff, they do the job site surveys, and everything. And once a job is bid and awarded, it gets turned over to project managers. And that’s who starts working in PM software.” says Burger.

Which brings up an interesting find in the study. When combined, requests for project management functionality exceed those for estimating. This happens because project management, document management, and scheduling can be grouped together under “project management.”

Burger says, “As a result of this, project management software provides the greatest value to general contractors as it helps them manage the actual building process.”

Prospective buyers should consider a PM system with mobile connectivity, according to Burger. These systems allow contractors, subs and technicians access to the PM system out on the job site. This promotes communication and collaboration between all parties involved and should be taken advantage of.

Demographics

    • Top buyer segments represented in the sample: 30% General contractors and 18% home builders
    • 62% of buyers are from small firms ($5 million or less in annual revenue)
    • 28% of contractors are from companies that employ between 2 and 5 employees
    • 84% of companies are looking to purchase solutions for 5 or less users

Key Takeaways from Software Advice:

First, construction companies should consider investing in either a standalone PM solution or an integrated PM/accounting suite. Takeoff and estimating may also be required, if so, look for solutions that offer an easy integration with PM systems.

Secondly, companies should consider a system with accounting and job costing capabilities. They can boost productivity in your company by allowing you to complete a job in it’s entirety without having to use a separate software for your accounting needs. Save your company the extra money and consider a software with the accounting built into it.

Detailed methodology for this report can be found here

Download a FREE 14 Day Trial of PlanSwift

We will be running maintenance from 3/7 starting at 6pm EST to 3/8 ending at 8am EST. Please be aware that there may be service interruptions during this time.