With technology permeating all sectors of the economy, the pace and ease of doing business across industries has increased manifold. The real estate sector is no different. The introduction of integrated Enterprise Resource Planning (ERP) systems have made construction companies consolidate their business in an unprecedented way.
These software programs integrate databases from across business processes and give the senior management a bird’s eye view of each project and the company’s profitability at the same time. One of the greatest advantages of opting for an integrated ERP system for your construction company is that it gives you the ability to manage the bidding and tendering process quickly and efficiently. To do this the ERP will enable you to come up with a smart Bill of Quantities (BOQ) and Estimation system.
The bill of quantities referred to as BOQ is one of the most important documents prepared by a construction company which details out the measures of the items required to undertake the different items of work in a building project. It then specifies the cost price of each unit of these items and the total supply cost. It also includes the erection cost of these items, giving us an idea of the total cost of building or the total project cost. This is a key document in the bidding process as many private projects compare item-wise costs of the various bidders before deciding on the company which will be awarded the contract.
This is where the use of a BOQ estimation software comes in handy. It is linked to the inventory management system of the construction company. It is also linked to the procurement and the vendor management systems. This makes it easy for the tender preparation team to pull up accurate cost details of the various items required in the construction of the project and calculate the cost per item. It also helps in ascertaining the appropriate vendor for the specified project looking at cost and quality details.
The greatest advantage of working with smart BOQ (those generated through digital ERP systems) is that it is quite easy to pull up details of past projects handled and pinpoint the quantity and the cost of the materials involved. The software can be programmed to look for similar projects based on the neighbourhood or the size of the project or done for the same client and help finalise a tender which gives the company a defining chance at winning the bid and maximising profit margins.
Integrated ERP systems and BOQ estimation software gain a place of great importance when it comes to proptech start ups wanting to make a mark in the sector by winning key projects. The software helps analyse the pattern of winning bids (based on inputs) and helps estimate profit margins with a great level of precision. Having said this, it is also important for older and more established construction companies to invest in smart BOQ estimation software to be able to consolidate their functioning and expansion and bring in consistency into their handling of projects.
Gone are the days of elaborate paperwork and sleepless nights spent pulling up details that can go into the BOQ before finalising the tender. The introduction of technology has made this a rather easy and efficient process.