While our suggested best practice is to keep your data in the STACK platform and create detailed estimates and proposals directly from your takeoff information, we recognize that not every estimator works the same way. Microsoft Excel has historically been a component in the estimating process for many folks, and we recognize it is still commonly used. Excel is a great tool that not only organizes and analyzes data but also learns your patterns.
If you’re going to continue using the spreadsheet software, we want to provide you with the top dos and don’ts of presenting and analyzing your data. You could have minor errors that add up in the long term, or major ones, like in 2005 when a Kodak employee added too many zeros resulting in an $11 million overstatement. Excel with Excel with our recommended practices:
The Benefits of Using Excel for Construction Estimating
Using Excel for construction estimating brings a range of convenient benefits, making it a preferred choice for many construction professionals:
- Cost-Effectiveness: Excel is often more affordable than dedicated estimating software, which can be expensive to purchase and maintain. For smaller companies or one-off projects, Excel offers a low-cost solution without sacrificing essential estimating capabilities.
- Customizability: Excel’s flexibility allows users to design spreadsheets that cater to specific project requirements. From creating unique cost breakdowns to organizing material and labor lists, Excel can be easily adapted to suit the specific needs of different construction projects.
- Robust Formulas and Functions: Excel provides a wide array of built-in formulas that can handle complex calculations, making it easier to build accurate estimates. By setting up custom formulas, users can calculate everything from material costs to project timelines, reducing the likelihood of costly errors and saving time.
- Integration Capabilities: Excel integrates seamlessly with other software tools, such as project management platforms and material databases, allowing users to pull in additional data as needed. These integrations enhance workflow efficiency, ensuring that estimates are accurate, timely, and reflective of the latest information.
- Familiar Interface: For many users, Excel’s familiar interface is easy to navigate, reducing the learning curve and allowing teams to get started with estimates quickly. This familiarity can also improve collaboration since multiple team members are likely to be proficient with the program.
These advantages can make Excel an, accessible tool for construction professionals who need flexibility and efficiency in their estimating processes, without the added cost or rigidity of specialized software.
How to Set Up a New Spreadsheet for Estimating
Creating a basic Excel spreadsheet for construction estimating involves organizing data in a way that makes it easy to input quantities, apply unit costs, and calculate totals for materials, labor, and other expenses. Here’s a simple guide to setting up your spreadsheet with essential concepts, settings, and requirements.
1. Define Key Sections
- Header Information: At the top, include project details like project name, client, date, and estimator’s name.
- Cost Categories: Organize sections for different categories of costs, such as:
- Materials
- Labor
- Equipment
- Subcontractor
- Overhead and profit
2. Set Up Columns
For each category, create columns that will allow you to track the essential details:
- Item Description: Lists each specific item or task, like “Concrete” or “Framing labor.”
- Quantity: Enter quantities needed for each item.
- Unit of Measure (UoM): Define units (e.g., square feet, cubic yards, hours).
- Unit Cost: Input the cost per unit (e.g., cost per square foot of drywall).
- Total Cost Calculation: Multiply Quantity by Unit Cost. Use a formula like =B2*C2 to calculate it automatically.
3. Apply Basic Formulas and Functions
- Use SUM functions to total costs for each section, e.g., =SUM(D2:D10) for a column of costs.
- Add a Grand Total at the bottom to sum all categories.
4. Formatting for Readability
- Currency Format: Format cost columns as currency for clarity. Select the cells, go to the Home tab, and click Currency in the format menu.
- Borders and Shading: Use cell borders to separate sections and add shading to headers for a clean layout.
5. Creating Templates for Reuse
- Save the spreadsheet as a template if you’ll be using it for multiple projects. This way, you can start with a pre-filled structure each time without re-entering formulas and settings.
This setup provides a straightforward, organized way to perform construction estimates, leaving room to add detail and complexity as you gain experience or require more advanced features.
Quick Tip: CTRL + Z These Mistakes, FAST!
It’s easy to make mistakes in complex spreadsheets containing multiple formulas, data sets, and multiple sheets. Undo these common mistakes in your Excel practices:
Don’t leave cells containing formulas unlocked
Your spreadsheets are full of precious data. With one click, your complex formulas or special formatting can disappear. Protect your work from unwanted changes by locking a cell or cell ranges. Go to: Format – Cells – Protection. Hot tip – if you share your spreadsheets with multiple users, you can protect the sheet so other users can’t unlock cells (Tools –