Construction cost estimating process
For home builders and remodelers, handling a construction cost estimate often feels like a tug-of-war between getting a bid out fast and making sure it’s right. Estimates are part of every job, but creating them takes valuable time away from finding new projects and managing work in the field. The good news? AI in construction is helping remove that tradeoff.
The bid process, speed & accuracy
The traditional estimating process is slow and complicated. It takes hours of focused, often repetitive work to collect project details, draft a basic scope, and carefully put together a final proposal. For remodelers and home builders, this manual process often means choosing between speed and accuracy.
Sending your proposal quickly can give you a big advantage in a crowded market. Being fast is key to winning competitive bids in remodeling. But rushing shouldn’t mean giving up accuracy. Accuracy protects your profits and helps avoid costly mistakes or unhappy clients later on.
Whether you’re using complicated spreadsheets or relying on gut calculations, the manual estimating process forces contractors to trade speed for accuracy again and again. That tradeoff often leads to lost bids or smaller profit margins.
Even if you’ve done similar projects before and have a good idea of costs, a bid with significant scope gaps can cut into profits and hurt your reputation.
Traditional home remodeling estimating software
Older estimating software might be a step up from sending spreadsheets over email, but that’s usually where the help stops. You still have to manually read plans, write the scope of work, and enter line-by-line costs. That means countless hours stuck at a computer, tracking every single item from floor tiles to door hinges.
Even when builders have a solid idea of what things cost, they still end up giving rough estimates or spending hours building detailed spreadsheets to check every small detail. This can feel like overkill for a simple remodel, but it’s often the only way to stay accurate. The time spent in this process is time lost from finding new work or finishing other jobs.
How AI in construction solves residential remodelers’ speed vs accuracy issue
AI takes away the need to choose between speed and accuracy for remodelers.
- The AI Assistant can read notes, plans, and blueprints faster than any person.
- It uses regional cost averages and your saved cost library to make sure the estimate matches your margins and local market rates.
- It can also create clear, professional proposal language and show a detailed cost breakdown for your client.
- You stay in control by reviewing and editing the draft before you send it.
How would this work for change orders?
AI estimating isn’t just helpful at the start of a project; it’s also a big advantage during construction, especially when dealing with change orders.
For example, imagine you’re building an addition, and the homeowner decides to turn a planned half-bath into a full bath with a tiled shower. That means new plumbing, more materials, and changes to the schedule. Usually, changes like this can cause delays and confusion.
Leveraging AI in change orders
- Instant Costing: Enter the new scope into the system, and the AI instantly prices the change using your saved material and labor costs. It automatically shows how the change affects both cost and schedule.
- Professional Proposal: The AI creates a clean, professional change order that clearly explains the extra cost and time needed for client approval.
- Dynamic Budget Update: Once the client approves the change online, the AI updates the project budget immediately.
This streamlined process keeps change orders from slipping through the cracks, keeps your client informed right away, and protects your profits before you even order extra materials.
Remodeling estimating software powered by Beam
Beam streamlines remodeling workflows with its AI Estimating tool, transforming project info into professional draft estimates based on cost libraries, profit margins, and current market rates. Approved proposals become project budgets, allowing real-time monitoring of estimated vs. actual costs. By integrating estimates, billing, and payments, Beam helps drive growth by increasing bid wins and profits. Try Beam’s AI Assistant for free and see the difference for yourself.
