T ECHNICAL A RTICLE

he construction industry has several software companies that are writing software specifically to meet its needs. With more choices available, construction companies often evaluate software based upon how the product looks during the demonstration. This article is written to provide guidelines for purchasing construction estimating software, but the guidelines provided can also apply to most software purchases. After construction companies buy computer software, they either believe the purchase was the best thing they ever did, or they are miserable and wish they had never bought the software. This article examines how to succeed when purchasing software. The key differences between the success or failure of a computerized system include the following: find out if the need is real; have a commitment to implement; overcome four barriers; and dont underestimate training.

Guidelines for Purchasing Software

Kevin Miller
dures within an organization is always difficult, and potential users might have reservations about the software. In this instance, the new programs will likely end up on the shelf. Before inviting different software vendors to demonstrate the software internally, evaluate how the task is currently performed. For instance, if your company does extensive detailed takeoffs based upon crews and production rates, rather than just unit pricing, make sure the software will also use crews and production rates. Many software vendors include glitzy graphics and fancy packaging to grab the attention of potential buyers. All too often, this glitz hides a less-than-useful product [1]. The level of detail in the estimate also increased, providing greater confidence in the estimates. The contractor can now estimate a subdivision of 150 lots in about 2 hours, compared to 6 hours using manual methods, and with a greater level of detail. Now more time is spent reviewing the production rates and less time is spent performing the quantity takeoff. My first experience with implementing a computer estimating system came right after graduating from Brigham Young Universitys construction management program. A commercial general contractor bought some software, and my job was to bring the system online. I had taken classes that used this software and had the knowledge needed to start implementing the software. After learning the companys estimating procedures, the process of examining the database the company had purchased started. The first problem I encountered was that the database had been developed in another part of the country and didnt match how things were done in the geographic area where this company was located. The second problem was that the database generated too much information (i.e., the number of nails needed for forming). The level of detail was overwhelming. The third problem was that the database contained formulas that used multiplication factors with no explanation of why they were there. This caused concern about how the quantities were calculated. The solution to these three problems was to create a database from scratch. The approach to creating the new database was piecemeal. There was not enough time to create everything that was needed in the database at one time, so items were created as they were needed. This kept the task from becoming too formidable. Before starting, the basic coding structure of the database was determined.

IS THE NEED REAL? Many companies have bought software they do not need, so obviously they never receive any benefit from it. To avoid this mistake, a careful evaluation must be made of the actual need for the software. The following key points should be included in the evaluation. Examine the tasks to be automated. If a task is performed on a regular basis, such as estimating, great benefit can be gained from using software. If estimating occurs only every 4 or 5 months, it may be detrimental to purchase an estimating package. If only a few estimates are made each year, the user will be required to relearn the estimating system each time an estimate is performed. The estimating software will probably not be used. The next step is to analyze the proposed software to determine if it is flexible enough to work the way the company works. If the program lacks flexibility, company procedures must be changed to accommodate the procedures required by the software. Changing established proce-

A COMMITMENT TO IMPLEMENT After a software package is purchased, the real work begins. Implementing the software is the step that determines if it is a help or a hindrance. Two companies that committed to implement software had the following experiences. The first company was a homebuilder that purchased an estimating system to reduce the time spent performing estimates and issuing purchase orders. After implementing the system, the time spent on estimates was reduced, and the person responsible for purchase orders went from working 80 hours per week to 50 hours per week. The second company is a site utility contractor. This company had previously prepared estimates manually and occasionally forgot to include items. Estimating also was taking more time than was available. After the estimating system was purchased, the items in the database were used as a checklist to help ensure that items were not left out of the estimate.

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To keep with industry standards, the company chose to follow the Construction Specification Institutes numbering format. By creating a customized database, the firm was familiar with the data and felt confident in the quantities that were generated. This company had a high degree of commitment to implementing the software. It should be noted that many businesses use prepackaged databases and are pleased with them. There are several different national [US] databases available. Means and Richardsons databases have provided a service to many contractors for projects ranging from competitive bids to conceptual budgets. The key to selecting the right database is to take the time necessary to examine it before buying to see if it fits the companys needs. If an organization does not like the software, it can usually be returned within a certain time period. If the company likes the software but not the database, typically, a database cannot be returned after it is installed. The databases that many dealers sell are good guides on how to build a database, but require modifications to make them fit individual estimating methods.

OVERCOMING FOUR BARRIERS Other companies in the area were experiencing the same problem: the problem was not that the software would not do what the dealer claimed, rather the companies in this region had not received adequate training, and there were no databases available that estimated the way we estimated. So after a year, I went to work with a dealer in hopes of helping the situation. Progress was made with several companies, but there were four common barriers that prevented most firms from getting the help they needed. The first barrier was price and distrust. Many organizations had been promised training when they bought the software but had not received it, or believed the quality of the training had been poor. Many were now gun shy of anything the local dealer claimed. The price for the training was more than what many believed was a fair price. The second barrier was that the company buying the software believed its people could set up and operate the software

without any help. Therefore, the company did not budget any money for implementation. They tried to implement the system using their own people and either only partially succeeded or failed to make the system usable. After trying for awhile, they would give up and let the software sit on the shelf. They figured if they could not implement it, someone from outside could not help them, because the outside person would not know how the company operated. The third barrier of time has two different scenarios. The first is the business believes its employees are so busy they do not have the time to learn how to run the software. They will get to it when things slow down. However, work never slows down and the software sits on a shelf. The second scenario is that the firm spends enough time to get the software to perform basic functions. This results in some benefits from the software, but the full benefits are never realized. The fourth barrier is that telephone support may cost money. During the sales process, the dealer was asked if telephone support were available, and the dealer replied, yes. An inquiry was not made concerning the cost of the support. The dealer recognized that the customer is cost sensitive and didnt want to make the cost of the sale any higher, so he or she didnt push the telephone support issue. Customers are trying to save money so they opt not to purchase telephone support. After the software is bought and a call is made to the support line, the caller is asked for a credit card number. The new user becomes angry and believes the company has been cheated because he or she just spent thousands of dollars for the software and now cant get the help needed without spending more money. The software package just found a new home on the shelf. The solutions to overcome these four barriers are to first, before purchasing, call several references to see how they like the product. People will spend a large amount of money on software without calling others to see how it worked for them. Call other users and ask questions such as, how much time did it take to implement the software? Who would they recommend for training? How have they benefitted by purchasing the software? Was it worth the time, effort, and money?

By asking these types of questions, a company will get responses from someone other than the person who is trying to sell the software. Even though they may be competitors, other firms typically still give honest opinions about the software. Second, realize that it will take more than a week to get all aspects of the software working. While it usually takes more time and effort than a week, progress should still be seen within a week. The right help is always beneficial, while the wrong help is worthless. Two pieces of advice about getting help in implementing software: first, check to see if the person helping to set up the software has really used it before. Second, if after a day or two, doubts arise about the consultants ability, get someone else. Do not count on the dealer to know how to implement the system. Dealers often only know the software well enough to show it, but lack the ability to efficiently set it up. Third, if the company will invest a little more time to learn the software, the product will save employees time. In either scenario, the software could provide a greater return, but time is not invested, so the potential return is never realized. A good approach to overcome this barrier is to set aside a half-hour each day to expand the database or to learn more about the program until the user believes he or she has reached the level they wish to obtain. Fourth, every software dealer will tell a potential customer there is support available. Usually, there is. However, you should ask how much support costs. Is it an 800 number? How long is a customer on hold? Check out wait times by getting the number and calling it. Call several times during the day to measure the length of the wait. Some companies have a real person available within 90 seconds, while others rely extensively on voice mail. A final word of advice is to make sure that your organization is aware of all of the costs before purchasing the software. Costs that need to be examined are the initial purchasing costs, additional hardware costs, training and implementation costs, annual software upgrade fees, and required hardware upgrades. The software dealer may say that the program can run on an outdated machine like a 286. It probably can; however, it may operate slower than cold tar.

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DONT UNDERESTIMATE TRAINING A survey conducted by Engineering News-Record [2] found that, Welltrained users are happier and more productive. Without knowing how to run estimating software, users experience a higher level of frustration and may be playing Russian roulette with the companys future. There may be key stroke sequences that must be done in order to ensure that the numbers are accurate. If there are specific keystrokes that must be performed and are not, judgments may be based upon correct but invalid information. Get trained on the software to avoid making costly mistakes. If a local dealer does not provide training classes, check to see if the company that wrote the software offers classes. These classes can provide information and ideas to make operating the system easier. Things to be aware of about training classes include the size of the class and whether or not the class is hands-on. If the class is nothing more than a lecture, the attendees probably will remember very little. If the class is hands-on, find out how many people will be in each class. If there are over 10 to 15 people per instructor, it may become more like a lecture. The ideal situation is for the local dealer to have someone provide a local training class. This is beneficial as long as the instructor is competent. After the class is over, invite the instructor to your office

to analyze how things are being implemented. Average construction firms spend 6 percent of their information technology budget on training [2]. If onsite training is desired, do not pay for the training in the sales agreement. Rather, set aside money in the budget for training and pay for it as the training is received. Make an agreement with the dealer or a consultant on an hourly, daily, or weekly basis. If training is paid for up front, there is a possibility you may have a hard time getting the training. The dealer has his money and his efforts are now spent trying to get other people to buy the software. A good resource for finding people who know how to run various software programs is a college or university that has a construction management program. The faculty will know which students are familiar with which software programs and have an idea of how well the person will meet your firms needs. If someone is hired straight out of college, allow them the opportunity for additional training to sharpen up their skills.

mon barriers, and receive proper training. Following these guidelines should make software implementation a more successful experience.

REFERENCES 1. Wilkinson, Carol. Software, Choose a Winner. Strategies (March/April 1997): 13. Phair, Matt, and William J. Angelo. Digital Demands. Engineering News-Record (March 24, 1997): 32.

2.

urchasing a software package can be the best thing a company has ever done, or it can be a big waste of money. The keys to success when purchasing software are to determine if there is a real need for the software, commit to implement the software, be aware of and overcome com-

Kevin Miller is an instructor at Brigham Young University. He earned a B.S. in the construction management program at Brigham Young University in 1991 and a masters degree from the University of Phoenix in 1995. He is married and is the father of 3 children. He has provided technical training for a Timberline software dealer. From 1991 to 1996, he estimated for one small and one large commercial contractor. At Brigham Young University, Mr. Miller teaches the estimating and design of residential and commercial projects.x

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