Any successful subcontractor will tell you, estimating is both an art and a science. You need a deep understanding of your potential client’s goals, the costs involved, and the timeline required to get the job done.
But it doesn’t stop there. As a business owner, you also have to think about profitability. If you’re not turning a profit, it’s hard to keep your business moving forward.
And let’s face it: managing all these moving parts is tough enough as it is. When you’re doing it manually or by the seat of your pants, without the right tools or processes in place, it gets even harder.
Estimates take too long and you lose out on jobs. Mistakes happen and you end up losing money on jobs. It feels like you’re reinventing the wheel with each new project. But it doesn’t have to be that way.
Let’s break down some common construction cost estimate problems and explore how you can solve them with the right tools.
Problem 1: Estimating takes too long, and mistakes are easy to make
There’s nothing more demotivating than feeling like you’re starting every new project from scratch. When you don’t have construction estimating software in place or a defined process to learn from past projects, you’re left reinventing the wheel. This makes creating estimates time-consuming, and it’s easy to miss something important or miscalculate costs.
The end result? A job that’s either underbid, cutting into your profit, or overbid, causing you to lose out on the project.
Problem 2: Difficulty marking up costs and hitting your target profit
Another challenge subcontractors face is understanding their own financials well enough to markup costs appropriately. It’s understandable. If you’re like most of the subcontractors we talk to, you got into this because you love your trade, not being a businessperson.
But without a good handle on your business’s financial health, it’s tough to build in contingencies for common cost fluctuations—like rising material prices—while still making sure you hit your target profit margin. And without that cushion, a single unexpected cost can throw your whole project off track.
Problem 3: Inefficient proposal process
Getting your estimate together is only half of the story. What happens next?
You need a smooth process for sending that quote to your client and following up as needed. If you’re working on multiple jobs at a time, this can get difficult to manage fast.
Not using modern options like e-signable proposals only adds more time to the process by making it harder for clients to sign and return your proposals quickly. In an industry that oftentimes thrives on speed, this delay can result in missed opportunities and be a blocker in starting the project.
Problem 4: Lack of real-time job tracking
Once the project kicks off, how do you keep track of your actual costs against your estimated costs? Without a job costing system or job costing software in place, it’s easy for a project to drift off-budget, whether due to material overruns, labor mismanagement, or other unexpected costs. Many subcontractors don’t have a way to get real-time insights into their spending, making it hard to spot problems before they escalate.
The solution: How Knowify simplifies estimating for subcontractors
At Knowify, we understand these challenges because we’ve built our platform specifically for subcontractors like you. Over the last decade, we’ve talked to tens of thousands of subcontractors to understand what makes their business’ tick so we can build a product that reflects industry-standard best practices.
Whether you’re just starting out or you’ve been in the game for a while, Knowify is designed to take the headaches out of the full project workflow, including estimating, proposal generation, project management, and cost management.
Here’s how we do it:
Solution 1: Streamlined estimating for new and experienced contractors
For new contractors, Knowify makes it easy to set up basic estimates. If you’re managing more complex projects, you can break them down by phases and cost categories. This gives you a clear, organized way to build out an estimate that matches the scope of the job.
For experienced contractors, Knowify gives you the ability to reuse past estimates as templates, saving you time and helping you build on your previous work. You can also add your catalog of services to Knowify, which allows you to create new estimates faster, with built-in pricing guardrails to help ensure accuracy.
Solution 2: Quick and easy markup
When it comes to hitting your profit targets, Knowify makes it simple. You can add markup to your estimates with just a few clicks and immediately see how it impacts your quote and projected profitability. It’s never been easier to tweak your quote and make sure you’re hitting the margins you need.
Solution 3: Professional proposals that close the deal
Once your estimate is done, Knowify turns it into a professionally designed proposal in just a few clicks. You can send this proposal to prospective clients over email, and we’ll track when they open it, look at the proposal, and sign it. E-signable proposals make it easy for clients to sign on the dotted line and get the project moving forward. Plus, you can set up automated reminders to stay top of mind with potential clients.
Solution 4: Real-time job cost tracking
Once the job is underway, Knowify automatically tracks your job costs in real time and attributes them to the correct project and job phase. Whether it’s materials, labor, equipment, or subcontractors, we categorize everything for you, so you don’t have to.
With a real-time view of your actual costs versus your estimated costs, you can spot potential overruns—whether it’s materials, labor, or something else—before they get out of hand. Having this level of insight allows you to make proactive decisions, ensuring your project stays on track and on budget.
Take control of your estimating process
Knowify is more than just software—it’s a way to take control of your business. With better estimates, faster proposals, and real-time job tracking, you can save time, avoid costly mistakes, and steer your business in the right direction. Ready to streamline your workflow and start winning more jobs? We’re here to help you do it. Book your free 30 minute demo to get started.