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Automation Leads to Steady Growth for Software Company

Despite a lagging economy, Anderson Commercial Concrete, based in Davenport, Iowa, has been experiencing steady growth with significant success in recent years. Bret Chumbley, vice president at Anderson, has been with the concrete and small site preparation contractor for more than 25 years and has seen major changes in both concrete practices and in the technology available to streamline the company’s operations.

For its first 20 to 25 years in business, the company served both Iowa and Illinois by performing takeoffs and creating estimates manually. “The manual method was very difficult as odd shapes were tough to takeoff and it was challenging to get precise values,” explains Chumbley. “We needed to increase the number of takeoffs we were doing and it was tough because of the time-consuming manual process we used.”

At the time, Chumbley thought there must be a better way. Wearing many hats, he was not only handling estimating, but also doing some project management and at times worked on the crew. His time was valuable and the firm needed to find a way to streamline its processes.

Anderson Commercial Concrete evaluated a number of products in the late 1990s and decided to automate its processes using a seamless takeoff and estimating software solution.

The Power Of Digital Takeoff

“At first we primarily used the automated solution for takeoff and it made a big difference in both speed and accuracy,” says Chumbley. “Since then it has really sped up our process and enabled us to develop very accurate estimates and more of them.”

The contractor now gets electronic drawings for potential projects and performs digital takeoffs using the takeoff and estimating software. This saves them time and money because they never have to touch a set of expensive, bulky blueprints. Once the digital plans are imported, the Anderson team can easily takeoff all aspects of the project including footings, foundation, curbs, and more right on their computer screen.

On sitework jobs, Chumbley and his team use the earthwork digital takeoff capabilities of the software solution to generate accurate cut and fill quantities straight from digital plans. They can efficiently takeoff existing contours, proposed contours, spot elevations, and any other sitework elements. Chumbley comments, “We simply load the necessary information directly from CAD files and can easily calculate how much cut/fill we will have to import and export and determine our machine requirements.”

Automating Estimating For Speed And Accuracy

Once the plan takeoff is complete, Anderson Commercial uses the software solution to develop its estimates, figuring out what the materials, equipment, and labor will cost. The estimators can conveniently keep track of all of their quantities and cost item specifications on an electronic notepad and use valuable cost databases tailored for concrete and sitework jobs to find historical pricing on cost items.

When evaluating takeoff and estimating solutions, it was the ability to view Visual Assemblies that really stood out to Chumbley. Their software’s 3D images provide verification capabilities by allowing the estimators to view the takeoff at a glance and ensure items are not missing or incorrect. “It helps us quickly provide numbers to contractors who request budget quotes,” explains Chumbley. “I’m not very technically savvy and thought this would be difficult, but the visual assemblies are easy and I’m even able to do them at home.”

“It makes our job of figuring out earthwork so much easier,” says Chumbley. Once the job’s cut and fill quantities are determined, the estimating program efficiently calculates what all the equipment and labor for the job is going to cost and the earthwork program’s 3D View provides a realistic aerial perspective of existing and proposed elevations to ensure accuracy and prevent mistakes.

Once all the data is collected and verified, Anderson Commercial’s estimators can use the software solution to see all the quantities, measurements, and calculations from the takeoff in the estimate, which eliminates the need to reenter any data. This automation enables the concrete firm to develop bids more quickly and more often, averaging about 20 bids a week.

Having an automated takeoff and estimating solution also enables project managers to easily identify change requests and track and manage change orders. If there are plan revisions, the software allows an instant comparison between the new and old plans to help contractors capitalize on every change order and capture additional gains in profit margin. With these capabilities, the approval process is streamlined and potentially costly mistakes are prevented.

Striving For Increased Profitability

“Our four estimators wear many hats and have extremely busy schedules,” explains Chumbley. “Automating our processes makes takeoff and estimating quicker, better, and easier, which is important when time is limited and preciseness is required.”

“When we used to do our takeoffs and estimates manually, we had the philosophy that ‘close enough’ was fine,” adds Chumbley. “However, now, in a tight market where bids must be low, we are continually trying to tighten up our bids and if we can dial in our quantities within 1 to 2 percent, our costs will be tighter, we will win more jobs, and ultimately, be more profitable.”

Maxwell Systems™ ProContractorMX™

Anderson Commercial Concrete uses Maxwell Systems™ ProContractorMX™ as their takeoff and estimating software solution. ProContractorMX is a complete solution that includes takeoff, estimating, and proposal management features to help construction companies of any industry and size to quickly and accurately quantify, price, and bid projects. It’s ideal for residential, commercial, subcontracting, specialty, heavy/highway, underground utilities, and sitework contractors. The robust and user-friendly features of ProContractorMX enable contractors to work more efficiently, bid more jobs, win more work, and be more profitable.

Whether using digitized or digital plans, ProContractorMX provides versatile takeoff options that help contractors eliminate costly errors and improve accuracy for better profit margins. The solution also automates estimating to help streamline productivity and cut costs.

Beyond takeoff, estimating, and bid day, ProContractorMX offers functionality to help contractors save time, simplify workflow, and improve communications between estimators, accounting, and project managers on active jobs. Providing end-to-end control of critical business operations, ProContractorMX handles the complexities of the entire project lifecycle. Offering wide and deep visibility for every project, executives can hone business strategy, improve control of cash flow, and keep financials in the black with accurate return on investment.

About the Author
Dan Lehman is vice president, product management for Maxwell Systems, a leading provider of complete construction software solutions for estimating, job cost accounting, and project management. For more information, visit www.maxwellsystems.com or e-mail dlehman@maxwellsystems.com.

Sigfusson Northern LTD

Sigfusson Northern LTD uses Maxwell Systems StreetSmarts as its job cost accounting and project management software solution. With StreetSmarts, SNL manages all of the accounting practices and job costs for their seven entities across the U.S. and Canada; maintain information in one place, in one format; manage payroll in-house; track and bill equipment expenses; and streamline workflow between the office and job sites.

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Our Story of Complete Construction Software

Maxwell Systems provides construction software solutions that help contractors to streamline workflow, increase productivity, and improve profitability. Furthermore, we understand that today's contractors must optimize processes across all business areas to gain or maintain an increasingly important competitive edge and ensure a successful business. Critical, to that end, is timely and efficient communication and information access among estimating, job cost accounting, and project management teams.

By using a Maxwell Systems complete construction software solution, you'll be able to better operate your business with increased efficiency and streamlined operations, and confidently increase profitability on every project. You will have the tools you need to accomplish more in less time; taking the guesswork out of reaching true profit potential; and improving financial stability for long-term benefit.

Why Maxwell Systems?

Maxwell Systems is truly unique with its ability to offer contractors a complete, seamless software solution that allows:

  • A new level of continuity and productivity among estimating, job cost accounting, and project management
  • Better insight, analysis, and financial oversight for owners to make informed and timely decisions
  • Improved operational efficiencies, cost reductions, and increased profits

Contractors value having an end-to-end solution from one company:

  • All applications work together seamlessly
  • Efficient access to comprehensive support and services
  • A stable technology partner committed to customer success

How Your Business Benefits

A complete construction software solution from Maxwell Systems provides end-to-end control of your business so you can see a day's profit potential at a glance, identify and prevent potential financial losses, spot discrepancies and errors, and manage projects with accurate information in real-time.

With tailored features designed to fit each member on your team, construction company management software ultimately allows your business to:

  • Attain end-to-end control and increased visibility
  • Achieve easy and accurate reporting with real-time data
  • Optimize project execution for maximum profitability
  • Streamline operations with seamless workflow

The Bid-to-Cash Cycle Explained

Managing each of the key process areas of a construction business – Estimating, Construction Accounting, and Project Management – requires vastly different talents and areas of expertise. The reality is that each of these functional groups is related and dependent on one another.

For your organization to run in an optimal fashion, the groups much work together in an optimal fashion. Together, these functional areas compromise what we describe as the Bid-to-Cash Cycle. And our goal at Maxwell Systems is to provide software for construction so you can bridge the needs of the functional groups, better manage this cycle, and so maximize profitability.

When construction estimating software, construction accounting software, and construction project management software are working together in a seamless system as a complete construction business management software solution, then a contractor is truly poised for optimal profit and productivity.

How does a complete solution fit your part of the cycle? Here are a few examples:

  • Owner: It's all about reducing waste, uncovering lost opportunity, exposing shortcomings, and maximizing resources – all which impact profit and the bottom line. With end-to-end visibility of every project, executives can hone business strategy, improve control of cash flow, and keep financials in the black with accurate ROI.
  • Estimator: Beyond estimating projects, the estimator can access more accurate information in regards to how the project actually performs. This will allow the estimator to improve accuracy on future estimates with actual labor and production rates, updated material prices, and other resource related items.
  • Accounting: Not only a company's construction accounting system, a complete solution helps to streamline the procurement processes for optimal efficiencies and produces more accurate purchasing processes. Additionally, billing processes, inventory issuances, and many other processes are streamlined. Less data entry, better accuracy, and reliable audit trail allow convenience and peace of mind.
  • Project Manager: The seamless workflow from Estimating to Project Tracking allows for a streamlined method of creating the job and then tracking performance against the estimate. Within the complete solution, the construction project management programs also provide the detail required for the Project Manager to understand what the Estimator was thinking when the bid was put together. Plus, by accessing real-time information whether in the office or in the field, the project manager can track progress, be more agile, and better handle all aspects of jobs from beginning to end.

Bottom Line

To succeed in today's competitive marketplace, construction business owners must improve productivity and have end-to-end visibility to see how jobs perform (and turn profit) from start to finish. Maxwell Systems knows construction company software and can be your partner by offering truly unique products (as well as support and services) that address the entire construction project lifecycle – from digital takeoff through final cash payment. Our seamless system provides your company with all the capabilities you need for estimating, job cost accounting, and project management, and ultimately for superior insight and analysis of your business.

Imagine the flexibility and insight by having one solution for estimating projects, for construction accounting programs, and for construction project software! All that and more in one system will help your business be more competitive and profitable.

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