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3/11/2020
1
ESTIMATING:
HOW TO WIN MORE JOBS & INCREASE PROFITSTROY GUEVARA, CONSTRUCTION TECHNOLOGIST - DIGITEK SOLUTIONS LLC
STEPHEN HULSTON, PARTNER - NOVO DEVELOPMENT, COMMERCIAL DEVELOPER
LAS VEGAS, NV | MARCH 10-14, 20202
Troy Guevara
Construction TechnologistDigitek Solutions, LLC
• I have helped 1000’s of companies to improve production and profitability
• EXPERT at streamlining processes using accounting, project management and estimating software
• Former President of an award winning specialty contractor
• Former board member BBS of Utah
• Member of the first class of Nationally Certified MCAA Contractors
• Use my experience to help you innovate for PROFIT!!!
LAS VEGAS, NV | MARCH 10-14, 20203
Stephen Hulston
Partner Novo Development, LLC
• Former Vice President of Construction for Balfour Beatty
• Has successfully delivered over $1.5 Billion in projects
• 27 years of experience managing project through the Western United States and Internationally in Guam and Singapore
• Project experience in retail, hospitality, industrial, office and medical buildings
LAS VEGAS, NV | MARCH 10-14, 20204
Today’s Learning Objectives……
1. Learn how to make your spreadsheets more accurate and efficient......
2. How can technology improveyour bids…….
3. Understand how to improve production using estimating strategies!
LAS VEGAS, NV | MARCH 10-14, 20205
Today’s Agenda
• The bid environment today
• Our dependence on spreadsheets
• Project Manager vs Estimator
• The shotgun effect
• 5 Strategies for better bidding
• Q & A
LAS VEGAS, NV | MARCH 10-14, 20206
Today’s Bidding Environment
• Bid more - win more…….does this really work?
• Do we know what it costs us to bid 1 project?
• How do we know what to bid, will it be profitable?
• Can we do it, do we have the manpower?
• Pricing concerns, market volatility, trade war.
• Last minute bids.
• Do we really know our job costs?
• Liability & Risk.
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LAS VEGAS, NV | MARCH 10-14, 20207
Dependence on Estimating Spreadsheets
• Structural errors (bad formulas)
• Data errors (input mistakes)
• Logical Errors(human shortcut mistakes)
• Administrative errors
• Maintenance errors
Spreadsheetscontain an ERROR
out of9 10
LAS VEGAS, NV | MARCH 10-14, 20208
How much are these errors costing you?
LAS VEGAS, NV | MARCH 10-14, 20209
Accounting
ProjectManager
Operations
vs Estimator
LAS VEGAS, NV | MARCH 10-14, 202010
LAS VEGAS, NV | MARCH 10-14, 202011
Problems Caused By The Great Divide
- Limited visibility for Project Managers
- Delayed responses to urgent jobsite needs
- Dependence on paper reporting
- Discrepancies between jobsite conditions and plans/specs
- Difficulty managing manpower
- Poor communication between field and office
- Difficulty reacting to changing conditions
LAS VEGAS, NV | MARCH 10-14, 202012
The U.S. construction
industry will spend
$177.5 billion in labor on
NON-OPTIMAL activities
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LAS VEGAS, NV | MARCH 10-14, 202013
Non-optimal Activities:
Looking for product dataand information
4.7 hours Conflict resolution
3.8 hours
5.5 hours
Dealing with mistakes and rework
14 hours
per week
35% of your employees time
LAS VEGAS, NV | MARCH 10-14, 202014
On average,
52% of all reworkresults from poor data &
miscommunication
LAS VEGAS, NV | MARCH 10-14, 202015
The “SHOTGUN EFFECT”
• How do we know what projects we want to bid?
• Do we just bid everything we can in hopes of getting a win?
LAS VEGAS, NV | MARCH 10-14, 202016
Can our construction
business survive in a low-bid competitive
environment?
LAS VEGAS, NV | MARCH 10-14, 2020
5 STRATEGIESFOR BETTER BIDDING
LAS VEGAS, NV | MARCH 10-14, 202018
5 STRATEGIES FOR BETTER BIDDING
1 Use technology to develop good data
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LAS VEGAS, NV | MARCH 10-14, 202019
Learn about Construction Technology
& Software
• Do your research
• Don’t get caught up in the marketing
• Make sure they have open API’s
• 500+ different products
• Learn about the software company
• YES, Name brand does matter!
19 LAS VEGAS, NV | MARCH 10-14, 202020
Estimating products that share data with project results
Project Management
systems that fully
integrate with your
accounting solution
Mobile Timekeeping and payroll solutions
Mobile service work, Field reports & photo documentation
Superior Reporting
products that are
completely
customizable
Paperless AP flow and
auto routing of docs
LAS VEGAS, NV | MARCH 10-14, 202021
API
Project Management Software with API Integration
Project Management
Software
LAS VEGAS, NV | MARCH 10-14, 202022
Paperless AP flow products
Cloud based project
management
software solutions
Estimating solution that includes Assemblies, Crews, WBS as well as BIM functionalityMobile time and
service solutions
Enhanced Excel software with prebuilt reports and the ability to slice and dice the data in multiple ways at the click of a mouse
LAS VEGAS, NV | MARCH 10-14, 202023
Take advantage of Estimating Software
• Takeoff software should fully integrate with your Estimating software
• Is the database easily configurable?
• Does your estimating software allow you to slice and dice the information
• Does your estimating software integrate with your accounting and project management software
• Can it grow with you?
• Relationship with the software seller
23 LAS VEGAS, NV | MARCH 10-14, 202024
Jobsite and office are fully integrated
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LAS VEGAS, NV | MARCH 10-14, 202025
5 STRATEGIES FOR BETTER BIDDING
1 Use technology to develop good data
2 Use data to find solutions
LAS VEGAS, NV | MARCH 10-14, 202026
Are you bidding
based on the
profit/loss of the
most recent bid?
LAS VEGAS, NV | MARCH 10-14, 202027
What do we do with the data?
You can’t control what you don’t measure!
What do we need to measure?
LAS VEGAS, NV | MARCH 10-14, 202028
Control Costs to Increase Profits…..
We control costs by managing the data in REAL TIME, this enables us to:
• Control labor daily
• Quick approvals
• Easy collaboration
• Access info from anywhere
• Daily job costing
• Improve workflows
• Manage manpower
• REAL TIME forecasting
28
LAS VEGAS, NV | MARCH 10-14, 202029
Estimated Costs
Final CostsTRUE Costs
LAS VEGAS, NV | MARCH 10-14, 202030
Contractors who improved their capabilities to gather and analyze field data have seen the following benefits:
Better budget & schedule compliance
Greater productivity
Improvedsafety
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LAS VEGAS, NV | MARCH 10-14, 202031
5 STRATEGIES FOR BETTER BIDDING
1 Use technology to develop good data
2 Use data to find solutions
3 Change the playing field
LAS VEGAS, NV | MARCH 10-14, 202032
Gain an Unfair Advantage
• Stop using the shotgun approach
• Quit doing the same thing as everyone else
• Avoid “lowest bid” jobs
• Don’t become a commodity
LAS VEGAS, NV | MARCH 10-14, 202033
Things We Can Do to Gain an Unfair Advantage
• Know your customer.
• What is the bid selection process?
• What makes you unique?
• How is your relationship with the customer?
• Be competitive, but not low.
• What is the owners exit strategy?
• Buy Hold or Build Sell
• How else can you differentiate yourself?
• What are the customers REAL CONCERNS?
• Time, Budget, Quality, Complexity
LAS VEGAS, NV | MARCH 10-14, 202034
5 STRATEGIES FOR BETTER BIDDING
1 Use technology to develop good data
2 Use data to find solutions
3 Change the playing field
4 Track your win/loss
LAS VEGAS, NV | MARCH 10-14, 202035
Track your win/loss…..
• Which types of projects give you a higher % of win?
• Did the relationship make the difference?
• In the win
• In the profitability
• Select bid vs open bid.
• What were your qualifications?
• Were you actively engaged with the customer prior to the bid?
LAS VEGAS, NV | MARCH 10-14, 202036
Track your win/loss…..
You will be surprised to see where you are winning most of your work and have the higher capture percentage…..
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LAS VEGAS, NV | MARCH 10-14, 202037
Focus your efforts on these projects…
Projects with the highest % of win…..
The most profitable projects
LAS VEGAS, NV | MARCH 10-14, 202038
5 STRATEGIES FOR BETTER BIDDING
1 Use technology to develop good data
2 Use data to find solutions
3 Change the playing field
4 Track your win/loss
5 Differentiate yourself from the competition
LAS VEGAS, NV | MARCH 10-14, 202039
Analyze the bids and look to offer…..
Value Engineering
Collaborative Design
LAS VEGAS, NV | MARCH 10-14, 202040
Other ways to differentiate yourself….
• Value engineering
• Collaborative design process
• Schedule
• Quality of workmanship
• Safety
• Better products
LAS VEGAS, NV | MARCH 10-14, 202041
5 STRATEGIES FOR BETTER BIDDING
1 Use technology to develop good data
2 Use data to find solutions
3 Change the playing field
4 Track your win/loss
5 Differentiate yourself from the competition
LAS VEGAS, NV | MARCH 10-14, 202042
Accountability
• Choose a software that includes training
• Invest in training for all employees and management
• Empower your team
• Set expectations
• Create a culture that embraces technology
• No Excuses!!
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LAS VEGAS, NV | MARCH 10-14, 2020
Implementation of
Construction Software is
helping construction
companies to increase
PROFIT of up to 25-30% in just 12 months time
43 LAS VEGAS, NV | MARCH 10-14, 202044
A Complete Solution
Job Costing Visibility
• Real time dashboards and reporting allows you to be PROACTIVE not REACTIVE
• Materials, labor and equipment costs are visible to PM’s and field personnel
Tame the Paperwork
• Change Orders, RFI’s, Plans, field reports, submittals are easily tracked
• Paperless approvals with document routing and easy reconciliation
• Much easier to make Cash Flow projections!!!!
Estimate with real data
• Estimates that sync directly to your accounting and project management systems
• Cost history is used for estimates and budgets and is easily accessible
LAS VEGAS, NV | MARCH 10-14, 2020
THANK YOU!
CONTACT INFO:
E: [email protected] | P: 602-334-4670
E: [email protected] | P: 602-920-4288
Questions?
Please complete the session evaluation on the CONEXPO–CON/AGG Mobile App. This is the same place you can log Professional Development Hours (PDH).