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Contractor Competes with Confidence in the Face of Change

Using software to produce better bids

Maintaining a competitive edge in today’s construction market is essential. Florida Lemark Corporation, based in Doral, Fla., prides itself on providing top quality work and service in a timely, effective, innovative, and economic manner. It is this hard work and dedication that has enabled the family-owned and operated company to grow from less than 10 employees when it was founded in 1987 to more than 100 employees and $18 million in annual revenue today.

Focused on commercial construction (both new and restoration) for customers in south Florida, this general contractor specializes in multi-level parking structures and strives to be the benchmark in concrete restoration, forming, and finishing.

Leveraging technology has been one of the key strategies for Florida Lemark to gain and maintain its competitive edge. The company has relied on a seamless takeoff and estimating software solution to streamline its business processes since 2001.

Realizing how the construction industry continually changes, Emilio Rodriguez, vice president of Florida Lemark, believed the company needed software to automate business processes and help keep up with the fluctuating prices of materials and other variable aspects of construction jobs. And when Florida Lemark expanded its operations to be a design/build contractor and serve clients as a single-point of contact for the design and construction phases of projects, their estimators found it to be time-consuming and complex to re-estimate the job during bid negotiations.

“We wanted to have electronic records of all of our estimates and stop needing to refer back to our written notes all the time,” explained Rodriguez. “We needed an automated tool to improve our takeoff and estimating speed, accuracy, and the quality of our estimates. With our manual processes, we always had to sacrifice on something.”

Better Bids in Less Time

The contractor relies on an automated software solution to significantly improve its takeoff, estimating, and proposal management processes. The solution offers a powerful platform, superior flexibility, and robust features. Having all applications in one easy-to-use software solution, Florida Lemark saves time and increases accuracy during their bidding process.

“Using the automated solution, we are no longer re-estimating multiple revisions during the bid negotiations on our projects,” added Rodriguez. “We now spend that valuable time estimating new jobs, which means we can bid on more projects and bring in more work.”

And because the software delivers unmatched accuracy, the contractor can be confident that costs and labor are calculated properly, allowing them to improve profit margins on every project.

Florida Lemark averages between five and 10 estimates a week, and for a majority of their projects they serve as a subcontractor. Whatever the job, they use the automated software solution to takeoff digital plans and estimate the work. Often they save time by using the software to create estimate templates from previous jobs to bid on new projects that are similar in scope of work.

Another advantage of using seamless takeoff and estimating solution is having a central database of historical pricing on cost items including materials, equipment, and labor, which speeds workflow and ensures accuracy. Rodriguez explains: “Our team values this vast database and that it’s flexible so we can customize it to fit the unique needs of our company. We have confidence that every number is right on the mark.”

Handling Changes Easily

“With the software, the takeoff and estimating process is much quicker,” said Rodriguez. “We just estimated a $200,000 design/build project in less than three hours. With paper plans and manual calculations, it would have taken us at least a full day to estimate the same project. The next day we received revised drawings and were able to easily make revisions and turn around a revised bid quickly.”

When there are plan revisions, the solution lets you instantly compare your new plans to the older ones, which allows contractors to capitalize on every change order to capture additional gains in profit margin. “I love the manage sheet revisions feature in the software,” said Rodriguez. “Whether for the original estimate or for change orders, we can add the items that we didn’t carry in on the first pass and easily manage and track revisions. It is so easy and it reduces the time we spend on revisions by about 40 percent.”

Florida Lemark also values the ability to do reverse estimates using the software. Rodriguez said, “We find the top two bids on a job that we lost, use their numbers, and go back to our estimate to compare where we were different from our competitors. This really helps streamline our estimating process while keeping pace with the changes in our market. The flexibility to go back in and change factors here and there and understand how other contractors are bidding is invaluable.”

The solution has helped Florida Lemark be more competitive on every bid. “Lately, our bids have been within $1,000 of every competing bid,” said Rodriguez. “The software has allowed us to close the gap on our bids and give us a new edge.”

Editor’s Note: Florida Lemark relies on Maxwell Systems™ ProContractorMX™ as its seamless takeoff and estimating solution that allows them to quickly and accurately quantify, price, and bid projects. ProContractorMX may also be leveraged as an all-in-one software solution that brings estimating, job cost accounting, and project management together in a single application that suits the whole construction team. As a complete construction software solution, ProContractorMX helps construction companies manage the entire project lifecycle from bid to cash for optimal productivity and maximized profitability.

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, please 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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