Construction Cost Estimation Software Key Terms

Learn the elements of what to look for in construction cost estimating software

Construction projects are very complex, involve a lot of parties and are usually very expensive. Both the contractor and purchaser of these services benefit from methods that can help reduce costs. Construction cost estimation software can be an invaluable resource for holding costs down. Most software includes the various elements of job costing and accounting, project area and phase analysis, as well as change order processing. If you think this software will benefit your business it would be prudent for you to compare and contrast the various software on the market.

 

Job cost accounting

Job cost accounting refers to the methodologies used to estimate and track the actual costs in a construction project. This is an essential element construction cost estimation software should have.
Try: A more complete definition of job cost accounting is offered at TechTarget.

Change order process

There is hardly ever a construction project that does not need some changes to it. A well designed step-by-step change order process, which is documented, can help reduce the costs associated with making changes in a project. Rather than "re-inventing the wheel," construction cost estimation software can help streamline this process.
Try: DC&D Technologies website offers a more complete discussion of this topic.

Materials management

Materials management is one aspect of logistics management and refers to the purchase of building materials such as concrete, asphalt and aggregates as well as any spare parts or replacements needed during a construction project. Any good construction cost estimation software should include this component.
Try: For a description of the various elements of materials management in an organization check out Auburn University.

Construction unit and composite assemblies

Construction unit and composite assemblies are the elements that comprise a cost estimate on a construction project. A necessity on most construction projects, construction cost estimation software almost always includes this.
Try: For a more complete definition of construction unit and composite assemblies go to Top Ten Reviews.

Purchase order system

A purchase order system is the step-by-step computerized process of tracking a commercial document that is transacted between a buyer and seller. Construction cost estimation software often includes this element in the package.
Try: A succinct definition of a purchase order is furnished at HJ Ventures.

CAD

Computer-aided design or CAD is the use of a computer to draft or draw a product or building. Some construction cost estimation software includes CAD in their program for an additional cost.
Try: Digital Property has a description of the various aspects included in this type of software.

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