Estimation is a pivotal part of the business growth engine, and you need every part of that engine to work as effectively as possible. Unfortunately, the software used for estimation is often an afterthought, underpowered or tucked into a much larger system. In this post, we’ll take a look at the problems with such solutions and how they hold you back, and then how OAE for estimation overcomes them to provide a dedicated, industry-leading solution.
The main challenges with using Excel for large bids
Microsoft Excel is a flexible program which, when used with its advanced features like macros, can serve a wide range of purposes – and that broad usefulness is exactly why it’s a poor choice for specialized applications like estimation for large bids.
Macros. Estimation requires complex formulas and connections between different types of data, and Excel macros can accomplish much of that, but at a price. Cell references break easily. They don’t copy well. And in complex formulas they can be hard to fix, to modify, or even to understand. Many organizations require experts to maintain their estimation macros in Excel. Even when they’re well-maintained, macros operating on hundreds of work and line items can slow Excel down drastically, and that slows down estimation work.
Version Management. One key practice for efficient work is reusing data where practical, like copying a file and modifying it. So leveraging previous estimates saves a lot of time. Even if copying Excel estimates and preserving complex macro formulas were feasible, managing multiple copies of an Excel file is a manual and error-prone approach. In the absence of effective version management, the estimation process may rely on organizational memory and low employee turnover, or it may require a separate bid-tracking application to facilitate cross-referencing estimates. These are problems inherent to using Excel for estimation.
Bottleneck. Excel isn’t built for simultaneous editing, yet for large bids, multiple estimators often need to work on the same estimate at the same time. Similarly, estimations often need to reference data (like subcontractor quotes) in multiple spreadsheets in different locations, or in other systems, which Excel isn’t built to handle elegantly. And the last thing you want is copy-paste errors.
No workflow. And of course, estimation requires more than just the storage and organization of the data itself. You need to be able to build accurate estimates and review them in a timely fashion, using standardized processes. An Excel file doesn’t come with any workflow.
Why ERP and lightweight estimation tools fail
Maybe your organization is clear on Excel’s inadequacies for large estimates. You might be using your ERP’s estimation module, or getting by with a lightweight estimation tool. And that sort of thinly-featured solution can work fine for smaller organizations.
But they’re not built to scale up for large bids, so let’s look at the problems that causes.
Inflexible. As your organization grows, its estimates also grow – both in size and in complexity. These solutions may not support the kind of complex formulas you need more and more of. And as more teams become involved in estimation, you need the ability to configure different estimation models for them, and these solutions often fall flat here. Similarly, the more variegated your business, the more flexibility you need in how each project is configured for estimation.
Simplistic. Another form of complexity manifests as needing more types of calculations, including the ability to pull dynamic input from all over the system (like rate cards). Reusing calculations also becomes more important, to maintain consistency and accuracy. Thinly-featured solutions lack the ability to handle these challenges.
Inefficient. As with Excel, leveraging previous estimates may be difficult without proper version management or the ability to copy estimates. The more similar estimates you have to create from scratch, the more time you waste. Likewise, these solutions often lack support for simultaneous editing, which creates a work bottleneck.
OAE for estimation is a superior alternative
OAE is a sophisticated, dedicated solution for estimation – the right tool for the job, not just a tool you can make work. It’s designed by estimators, for estimators and how they really work.
| FEATURE | ADVANTAGE |
|---|---|
| Define a formula in one place, then apply it wherever you need it | Standardization eliminates copy–paste errors |
| Use complex calculators of various types that reference custom properties | Enables the sophisticated estimation required by large, complex bids |
| Copy estimates while perfectly preserving formulas and calculators, and maintaining archival links for easy reference to previous versions | Past estimates became a valuable resource, guiding less experienced estimators and improving accuracy |
| Database-driven platform smoothly handles thousands of items | Eliminates Excel’s performance delays |
| Keep related files and all project-related data in one place | No more searching across drives and systems |
| Multiple estimators can work on the same estimate at the same time | Increases your estimation throughput |
| Configure custom properties and templates at the system, project, or work item level | Lets you estimate the way you need to, not the way the system needs you to |
| Use statuses to keep estimates organized by where they are in the process | Helps estimators manage and prioritize their work |
| Split long projects out into phases | Helps estimators manage and prioritize their work |
| Changes are logged | Facilitates auditing, whether for quality checks or after a mistake |
| Integrates with your ERP or other systems | Increases your estimation process’s efficiency and accuracy |
| Long term road map for enhancing estimation | Ensures the product continues to meet your needs and provide transformative value |
Don’t let estimation hold you back. Make it your secret weapon by estimating faster and more accurately at scale, with OAE for estimation. Contact us today!
