Top 54 Construction Estimating Software (May 2023)

2023's Best 55 Construction Estimating Systems

Shlomi LaviShlomi Lavi / May 12, 2023

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1. TurboBid

  • Best for: Small, medium and large size businesses
  • Price: starts at $99 per month
  • Mar 09, 2022
Compare TurboBid Vs. TurboBid

TurboBid is an estimating software program that allows clients to estimate all kinds of work such as service work, new residential construction, remodeling, commercial, multi-family, industrial, and flat rate. The estimating software has a user-friendly interface that makes it one of the most user-f...


2. Fast Track Estimating

  • Best for: Small, medium and large size businesses
  • Price: starts at $295 per license
  • Mar 12, 2022
Compare Fast Track Estimating Vs. TurboBid

Fast Track Estimating is an on-premise construction estimating software designed for general contractors and homebuilders. Founded in 1999 by Construction Programs and results, Fast Track Estimating features audit trail, reporting & analytics, cost database and customizable templates and more. Fast ...


3. BIDBUILDER

  • Best for: Small, medium and large size businesses
  • Price: starts at $75 per month
  • Mar 13, 2022
Compare BIDBUILDER Vs. TurboBid

BidBuilder software is an on-premise Construction Estimating Software created to serve builders and remodelers. It is a spreadsheet interface that is integrated with a database power. BidBuilder software is a product of Digital Canal Company founded in 2001 in the US.


4. Craftsman Site License

  • Best for: Small, medium and large size businesses
  • Price: starts at $78.50 per license
  • Mar 13, 2022
Compare Craftsman Site License Vs. TurboBid

Craftsman Site License is an on-premise construction estimating software and some of the features include reporting/analytics, price data/price books, audit trail, electrical estimating, accounting integration, historical database, and product database. In addition, it has a complete estimating feat...


5. Red Rhino

  • Best for: SMBs
  • Price: starts at $75 per month
  • Mar 19, 2022
Compare Red Rhino Vs. TurboBid

Red Rhino Software by Hard Hat is a CMS (construction management solution) that offers integrated software features for takeoff, project management, bid management, estimating, and customer management. The software is also installed as a web-based software solution, making it accessible to users tha...


6. B2W Estimate - Estimating & Bidding

  • Best for: Small, medium and large size businesses
  • Price: starts at $5,500 per license
  • Mar 22, 2022
Compare B2W Estimate - Estimating & Bidding Vs. TurboBid

B2W Estimate is a cloud-based Construction Estimating software that allows its users to optimize their bidding potentials through a central estimating system and cost structures.


7. Takeoff Plus

  • Best for: Start up, Small business, Medium business, Large business
  • Price: starts at $1,995 per license
  • Apr 14, 2022
Compare Takeoff Plus Vs. TurboBid

Takeoff Plus software is a construction estimating solution that is designed for contractors and home builders. The bid sheet templates standardize the estimating process. The change order tool tracks pending, approved and rejected change orders and prints and emails them.


8. D4COST

  • Best for: Small, medium and large size businesses
  • Price: starts at $20 per year
  • Mar 25, 2022
Compare D4COST Vs. TurboBid

D4COST is a cloud-based Construction Estimating software that allows builders to validate initial construction costs and feasibility and conduct valuation studies.


9. QuoteSoft

  • Best for: Small, medium and large size businesses
  • Price:
  • Apr 26, 2022
Compare QuoteSoft Vs. TurboBid

QuoteSoft software is a plumbing and ductwork estimating solution. The solution offers a number of features that include a standard spreadsheet tool that handles equipment, fixtures, labor rates, rentals, and job-related costs.


10. eTakeoff

  • Best for: Small, medium and large size businesses
  • Price: starts at $950 per license
  • May 13, 2022
Compare eTakeoff Vs. TurboBid

eTakeoff is a complete electronic viewer and takeoff solution for estimators across all construction disciplines. From our free Basic viewer to our Advanced and Premier products, there’s a solution for every need. Basic is a FREE viewing, printing and takeoff tool. Its purpose is two-fold. First, it...


Pricing Guide - Construction Estimating Software:

Construction Software Price Range

Most construction software in the market are priced on a per-user, per-month basis, although the terms are flexible, depending on the need of an organization. The price points for construction software can be divided into three tiers, and the price ranges for each respective tier are $0 to $20, $20 to $100, and $100 above. For instance, FINALCAD pricing starts from $55 per user monthly, EZOfficeInventory pricing from $35 per user monthly, and Adoddle costs about $25 per user monthly.

Meanwhile, some construction software are priced per year, while others have perpetual licenses that can be bought with a one-time fee. For example, ConstructionOnline is priced at $2,400 per year and Contactors Office cost price is around $700 per year.

In addition, construction software vendors adjust their prices to fit different business sizes, while others specifically serve some business sizes.

  • Small Businesses can expect to pay between $5 to $15 for a construction software product. This price range is for the entry-level offerings for small businesses as found on some vendors websites. For example, OpenProject BIM Edition pricing starts from around $5 per user monthly, Site Diary from $10 per user monthly, and PayPanter from $29 per month for two user accounts.
  • Medium Businesses can expect to pay prices that fall between $20 to $45 for a business software. The number of users on each given package can also influence the price of this software. For example, Praesto AE pricing starts from $35 per month, BrickControl from $29 per user monthly, and Pruvan cost price falls around $35 per month.
  • Large Businesses can expect to pay between $120 to $350 and $350 to $1,500 for a construction software per month, although many vendors do not disclose their pricing and would rather have an understanding of the need of a large organization to conclude on pricing. Sometimes, the offering for large businesses usually includes more than one user account. For example, ImproveIt 360 cost price starts from around $150 per month, Onware pricing sits around $500 per month and Aidi from $1,200 per month for unlimited users and projects.

Construction software best of breeds and their price ranges are as follows:

  • Construction CRM Software The pricing for most construction CRM software in the market are set on a per user, per month basis. The price ranges are between $12 and $50 upwards. For instance, Projul pricing starts from around $50 per month, JobNimbus from $25 per user monthly, and Project SaleArchiver from around $47 per month. These price ranges correlate mostly with the starting offerings from each vendor; thus, premium or enterprise plans with more features will cost more, depending on the number of users.
  • Architecture Software The price ranges for architecture software in the market usually fall between the range of $100 to $500, $500 to $2500, and $2,500 upwards and they are set on a per-user, per-month basis. For example, SketchUp pricing starts from around $300 per user yearly, Revit from $3,000 per user yearly, and nanoCAD costs about $150 per user, per year.
  • Construction Accounting Software Most construction accounting products have perpetual licenses that can be bought with one-time fees. However, there are others with monthly plans. The price ranges for perpetual licences are $3,000 to $6,000 and $6,000 to $35,000. For example, STRUCTURE costs around $17,000, Jonas Enterprise around $30,000, and Ventus cost price is up to $5,000. On the other hand, CoreCon, for example, is a construction accounting software which costs $60 per month.
  • Construction Estimating Software Construction companies can expect to pay within the price ranges of $80 to $180, $180 to $1,200, and $1,200 above for a construction estimating software. Most products are priced per year. For example, RsMeans Data Online pricing starts from $240 per year, ProEst from $5,000 per year, and Square Takeoff from $800 per user yearly.
  • Home Builder Software Most home builder products in the market are priced on a per user, per month basis. The price ranges are $25 to $60, $60 to $150, and $150 above per month. For example, Cedreo pricing starts from $79 per user monthly, Contactor Foreman from $50 per user monthly, and BuildTools from $200 per month for three user accounts.

11. Bluebeam Revu

  • Best for: Small, medium and large size businesses
  • Price: starts at $349 per seat
  • May 13, 2022
Compare Bluebeam Revu Vs. TurboBid

BlueBeam Studio is an online/web-based project management software for construction companies. The software connects different stakeholders worldwide with a centralized database and document repository. It runs as the collaboration platform for Revu and handles all the documentation activities.


12. PlanHub

  • Best for: Small, medium and large size businesses
  • Price: starts at $1,199 per year
  • May 24, 2022
Compare PlanHub Vs. TurboBid

PlanHub is a cloud-based construction estimation software for all contractors and supplier businesses to share project files and information, post and make bids, advertise available projects for sale, and search for contractors.


13. Simsol Software

  • Best for: Small, medium and large size businesses
  • Price: starts at $100 per month
  • Dec 12, 2022
Compare Simsol Software Vs. TurboBid

Simsol software is an on-premise construction estimating software that is used to create construction estimates as well as document claims within the construction and property insurance industry.


14. UDA ConstructionSuite

  • Best for: SMBs
  • Price: starts at $149 per month
  • Sep 22, 2022
Compare UDA ConstructionSuite Vs. TurboBid

UDA ConstructionSuite is a cloud-based construction estimation as well as management software that is widely used by residential builders, contractors, and subcontractors. This software provides several features such as estimation, scheduling, and document management.


15. B2W Estimate

  • Best for: Small, medium and large size businesses
  • Price: starts at $5,500 per license
  • Apr 27, 2022
Compare B2W Estimate Vs. TurboBid

B2W Estimate is designed to manage your entire estimating and bidding process. Despite its power and feature-rich functionality, it is intuitive and easy to learn. Estimators can be up and running in days, not weeks or months. By spending more time estimating rather than entering data, you can accom...


16. Construction / Job Cost

  • Best for: SMBs
  • Price:
  • Apr 30, 2022
Compare Construction / Job Cost Vs. TurboBid

Construction/Job Cost (referred to as Key2Act) is a cloud-based construction software built for companies to increase revenue and reduce risks.


17. InSite SiteWork

  • Best for: SMBs
  • Price: starts at $245 per month
  • May 15, 2022
Compare InSite SiteWork Vs. TurboBid

InSite SiteWork is cloud-based construction software that enables contractors to work on take-offs and estimate calculations, as well as the generation of construction staking data.


18. The Estimating Software

  • Best for: Small, medium and large size businesses
  • Price:
  • May 14, 2022
Compare The Estimating Software Vs. TurboBid

Estimating software is a construction estimating software for project managers and estimators to make estimates, set-up projects, transfer information, and make reports.


19. Cleopatra Enterprise

  • Best for: Small, medium and large size businesses
  • Price: Has a free version
  • May 19, 2022
Compare Cleopatra Enterprise Vs. TurboBid

Cleopatra Enterprise is a construction estimating software designed to help businesses manage the cost of projects.


20. Roof Wizard

  • Best for: SMBs
  • Price: starts at $225 per month
  • May 21, 2022
Compare Roof Wizard Vs. TurboBid

Roof Wizard is a construction estimating software designed for automated and easy estimation and roof modeling, creating 3D models, making accurate quotes for roof designs, and selecting the best roofing materials.


21. Clear Estimates

  • Best for: Small businesses and start ups
  • Price: starts at $59 per month
  • Jun 07, 2022
Compare Clear Estimates Vs. TurboBid

Clear Estimates is a construction estimating software for construction companies to create proposals and estimates, simplify estimating processes, and customize job templates.


22. Active Takeoff

  • Best for: SMBs
  • Price: starts at $119 per year
  • May 26, 2022
Compare Active Takeoff Vs. TurboBid

Active Takeoff software is an estimating and takeoff solution that is designed for companies in the construction industries. The solution offers a number of functionalities that include an excel integration tool that enables users to export and manage their estimates to a local PC.


23. JobFLEX

  • Best for: SMBs
  • Price: starts at $8 per month
  • Jun 18, 2022
Compare JobFLEX Vs. TurboBid

JobFLEX is a cloud-hosted construction estimation software solution modeled to allow small and medium-sized businesses to generate on-site professional quotes while in the field. Users are given capabilities to tailor the quotes and include photos, logos, drop-down menus, and marketing collaterals.


24. CostX

  • Best for: SMBs
  • Price:
  • Jun 20, 2022
Compare CostX Vs. TurboBid

CostX software is a cloud or on-premise Construction estimating software solution that allows quick & accurate measurement derived from PDF, scanned & CAD drawings and more. It also allows for automatic generation of BIM quantities & 3D/BIM models. CostX software enables users to create customized r...


25. 247PRO Estimator Software

  • Best for: Small businesses and start ups
  • Price: starts at $49 per month
  • Jun 26, 2022
Compare 247PRO Estimator Software Vs. TurboBid

247PRO Estimator Software is a cloud-based construction estimating software designed to help remodelers and contractors manage a central hub for leads, documents, and projects.


26. Houzz Pro

  • Best for: Small, medium and large size businesses
  • Price: starts at $65 per month
  • May 12, 2023
Compare Houzz Pro Vs. TurboBid

Houzz Pro is a software platform designed for home professionals, including architects, interior designers, and contractors, to help them manage their businesses more efficiently. The platform was developed by Houzz Inc., the technology company that operates an online platform and mobile app for hom...


27. RIB Candy

  • Best for: Small, medium and large size businesses
  • Price:
  • May 12, 2023
Compare RIB Candy Vs. TurboBid

RIB Candy, created by RIB Software, is a comprehensive construction management software designed to streamline project management processes. It is a versatile platform that caters to the needs of everyone involved in construction projects, including contractors, architects, engineers, and project ow...


28. HeavyBid

  • Best for: Small, medium and large size businesses
  • Price: starts at $180 per month
  • Jul 16, 2022
Compare HeavyBid Vs. TurboBid

HeavyBid is both a cloud-based and on-premise software designed to work in companies dealing with infrastructures and contractors. The software is designed to work perfectly in medium-sized companies and large-sized companies.


29. LaserQuote

  • Best for: SMBs
  • Price: starts at $59.90 per user/month
  • Jul 15, 2022
Compare LaserQuote Vs. TurboBid

LaserQuote is a web based manufacturing and estimating solution for businesses of all sizes. It offers such services as quote management, contract management, cost database, and others. The software was designed and launched by Idronic headquartered in Brisbane, Australia.


30. Construction Cost Estimator

  • Best for: Small, medium and large size businesses
  • Price: starts at $39.99 per license
  • Jul 19, 2022
Compare Construction Cost Estimator Vs. TurboBid

Construction Cost Estimator is a desktop, and mobile app Project Estimates solution that helps users to create cost estimates using their Mac, iPhone, or iPad devices. Construction Cost Estimator is a product of Wasatch Digital Media which launched the platform in 2012 in the United States.


31. Electrical Estimating Software

  • Best for: Small, medium and large size businesses
  • Price:
  • Jul 26, 2022
Compare Electrical Estimating Software Vs. TurboBid

The WinTRF SD Electrical Estimating Software has been recognized as one of the easiest to use and implement by Electrical Contractors from all 50 states and many locations overseas. They are multi-platform products that operate in any Windows environment available. They are distributed complete and ...


32. House Flipping Spreadsheet

  • Best for: Small businesses and start ups
  • Price: starts at $127 per license
  • Jul 29, 2022
Compare House Flipping Spreadsheet Vs. TurboBid

House Flipping Spreadsheet is a real estate management software designed for real estate investors, rehabbers, and flippers to analyze purchase prices and make a repair cost estimate.


33. Construction Partner

  • Best for: SMBs
  • Price: starts at $5,995 per license
  • Jul 28, 2022
Compare Construction Partner Vs. TurboBid

Construction Partner is a construction accounting software designed to track costs on materials, labor, and equipment automatically. It also allows users to simplify payroll processing by automating complex calculations.


34. Takeoff Live

  • Best for: Small, medium and large size businesses
  • Price: starts at $599 per desktop
  • Aug 09, 2022
Compare Takeoff Live Vs. TurboBid

Takeoff Live is a construction estimating software for subcontractors, contractors, architects designed to measure the amount of material required for projects. The software also calculates volumes, lineal footage, and square footage.


35. CBD2 Estimating

  • Best for: Small, medium and large size businesses
  • Price: starts at $39.95 per license
  • Oct 19, 2022
Compare CBD2 Estimating Vs. TurboBid

CBD2 Estimating is a growing cloud-based Construction software, it is designed to support small, medium and large size construction business. CBD2 Estimating received a rating of 4.1 from ITQlick team. The software cost is considered affordable (2.3/5) when compared to alternative solutions.


36. Easy Price Pro

  • Best for: SMBs
  • Price: starts at $527.29 per provider
  • Mar 07, 2022
Compare Easy Price Pro Vs. TurboBid

Easy Price Pro is a fast growing cloud-based Construction software, it is designed to support small and medium size construction business. Easy Price Pro received a rating of 4.5 from ITQlick team. The software cost is considered affordable (2.5/5) when compared to alternative solutions.


37. Quick Bid

  • Best for: Small, medium and large size businesses
  • Price: starts at $3,895 per license
  • Feb 01, 2023
Compare Quick Bid Vs. TurboBid

Quick Bid® (QB) set the standard in 1988 when it was introduced to Specialty Contractors. Quick Bid is used by estimators to quickly produce profitable bids with the most precise material and labor costs. Automating construction estimating with QB enables contractors to easily, accurately, and c...


38. iScope

  • Best for: SMBs
  • Price: starts at $85 per user/month
  • Feb 03, 2023
Compare iScope Vs. TurboBid

iScope is a fast growing cloud-based Construction software, it is designed to support small and medium size construction business. iScope received a rating of 2.5 from ITQlick team. The software cost is considered affordable (1.1/5) when compared to alternative solutions.


39. e4Clicks Project Estimator

  • Best for: Large business
  • Price: starts at $550 per year
  • Feb 09, 2022
Compare e4Clicks Project Estimator Vs. TurboBid

e4Clicks Project Estimator is an award-winning cloud-based Construction software, it is designed to support large size construction business. e4Clicks Project Estimator received a rating of 4.5 from ITQlick team. The software cost is considered affordable (1/5) when compared to alternative solution...


40. XactRemodel

  • Best for: Small, medium and large size businesses
  • Price: starts at $58 per month
  • Mar 15, 2022
Compare XactRemodel Vs. TurboBid

XactRemodel is an on-premise construction estimating solution ideal for professional remodelers. Some of its core features include sketch, macros and templates, and project management & scheduling among others.


41. Cubit

  • Best for: SMBs
  • Price: starts at $2,995 per license
  • Mar 02, 2022
Compare Cubit Vs. TurboBid

Cubit is a growing cloud-based Construction software, it is designed to support small and medium size construction business. Cubit received a rating of 2.5 from ITQlick team. The software cost is considered affordable (1.5/5) when compared to alternative solutions.


42. HomeProSoft

  • Best for: SMBs
  • Price:
  • Mar 28, 2022
Compare HomeProSoft Vs. TurboBid

HomeProSoft is a fast growing cloud-based Construction software, it is designed to support small and medium size construction business. HomeProSoft received a rating of 2.5 from ITQlick team. The software cost is considered affordable (1.4/5) when compared to alternative solutions.


43. Carlson Takeoff Software

  • Best for: SMBs
  • Price: starts at $7,500 per license
  • Mar 25, 2022
Compare Carlson Takeoff Software Vs. TurboBid

Carlson Takeoff Software is a fast growing cloud-based Construction software, it is designed to support small and medium size construction business. Carlson Takeoff Software received a rating of 4.5 from ITQlick team. The software cost is considered average (3.6/5) when compared to other solutions ...


44. Square Takeoff

  • Best for: Small, medium and large size businesses
  • Price: starts at $997 per license
  • May 16, 2022
Compare Square Takeoff Vs. TurboBid

Square Takeoff is a cloud-based construction software that allows construction managers to manage and share their organization bids and projects, as well as completing blueprints takeoff using calculations based on total square feet, linear feet, and item counts.


45. BidGenius

  • Best for: Small, medium and large size businesses
  • Price: starts at $799 per year
  • Sep 09, 2019
Compare BidGenius Vs. TurboBid

BidGenius is a growing cloud-based Construction software, it is designed to support small, medium and large size construction business. BidGenius received a rating of 4.8 from ITQlick team. The software cost is considered average (2.7/5) when compared to other solutions in their category.


46. Causeway Estimating

  • Best for: Small, medium and large size businesses
  • Price:
  • Sep 24, 2019
Compare Causeway Estimating Vs. TurboBid

Causeway Estimating is a growing cloud-based Construction software, it is designed to support small, medium and large size construction business. Causeway Estimating received a rating of 4 from ITQlick team. The software cost is considered affordable (1.7/5) when compared to alternative solutions.


47. Contractor Accounting Software

  • Best for: Small, medium and large size businesses
  • Price: starts at $10 per month
  • Aug 31, 2019
Compare Contractor Accounting Software Vs. TurboBid

Contractor Accounting Software is a leading cloud-based Construction software, it is designed to support small, medium and large size construction business. Contractor Accounting Software received a rating of 4.3 from ITQlick team. The software cost is considered affordable (1.5/5) when compared to...


48. Databuild Estimating Software

  • Best for: Small, medium and large size businesses
  • Price:
  • Nov 04, 2019
Compare Databuild Estimating Software Vs. TurboBid

Databuild Estimating Software is a trending cloud-based Construction software, it is designed to support small, medium and large size construction business. Databuild Estimating Software received a rating of 4.4 from ITQlick team. The software cost is considered affordable (1.8/5) when compared to ...


49. EasyEst Estimating Software

  • Best for: Small, medium and large size businesses
  • Price: starts at $199 per license
  • Oct 12, 2019
Compare EasyEst Estimating Software Vs. TurboBid

EasyEst Estimating Software is a fast growing cloud-based Construction software, it is designed to support small, medium and large size construction business. EasyEst Estimating Software received a rating of 3.3 from ITQlick team. The software cost is considered affordable (1.5/5) when compared to ...


50. Construction Report Manager

  • Best for: Small, medium and large size businesses
  • Price: starts at $20 per user/month
  • Mar 13, 2020
Compare Construction Report Manager Vs. TurboBid

Construction Report Manager is a growing cloud-based Construction software, it is designed to support small, medium and large size construction business. Construction Report Manager received a rating of 4.8 from ITQlick team. The software cost is considered average (2.6/5) when compared to other so...


51. EstimatorXpress

  • Best for: Small, medium and large size businesses
  • Price: starts at $582 per license
  • Sep 09, 2019
Compare EstimatorXpress Vs. TurboBid

EstimatorXpress is a growing cloud-based Construction software, it is designed to support small, medium and large size construction business. EstimatorXpress received a rating of 3.9 from ITQlick team. The software cost is considered average (3.3/5) when compared to other solutions in their categor...


52. ESTmep+

  • Best for: Small, medium and large size businesses
  • Price: starts at $920 per year
  • Aug 01, 2019
Compare ESTmep+ Vs. TurboBid

ESTmep+ is a growing cloud-based Construction software, it is designed to support small, medium and large size construction business. ESTmep+ received a rating of 4.2 from ITQlick team. The software cost is considered average (2.6/5) when compared to other solutions in their category.


53. Expert Estimation

  • Best for: Small, medium and large size businesses
  • Price: starts at $99 per user/month
  • Oct 31, 2019
Compare Expert Estimation Vs. TurboBid

Expert Estimation delivers exceptionally accurate estimates with ease and manageability for forecasting, cost control, recovering margins and overheads. Gets bids in on time and budget. Integrates with Expert Project. Installed on Windows. Three license levels support small, medium and large size...


54. Flooring Estimator

  • Best for: Small, medium and large size businesses
  • Price: starts at $1,295 per license
  • Aug 30, 2019
Compare Flooring Estimator Vs. TurboBid

Flooring Estimator is a leading cloud-based Construction software, it is designed to support small, medium and large size construction business. Flooring Estimator received a rating of 3.7 from ITQlick team. The software cost is considered affordable (2.5/5) when compared to alternative solutions.



A Buyer's Guide to Business Software Solutions

How to Evaluate and Buy Business Software
 
If you’re somehow puzzled if this article is only for a specific size of business, no, it’s not. This is for you SMEs, MNEs and start-ups software buyers. Also, we’re not talking about a specific software solution here. Whether the software solution that you’re planning to buy is for Accounting, Business Intelligence, ERP, CRM, Help Desk, Maintenance Management or other types of application, one thing is for sure; with the help of this article, you will be able to know the right process in evaluating and buying a business software solution.
 
We’ve been into the software business for years and we’re seeing a lot of nitty-gritty things that often bring confusions and hesitations to many companies looking for better software solutions. Some companies can’t afford to let go their legacy systems while a few is encountering technological snags once the new system is in place. While this is the underlying truth behind software acquisition and implementation, what’s exciting about buying a business software solution is that there is a clear and obvious proof that thousands of companies and corporations today are happy with the benefits this technology is bringing into their respective businesses.  There is a significant increase in their revenue and the growth is on-going. And it’s easy to say; many from the Fortune 500 companies are making a lot of money because of their smartly-acquired business software.
 
So, let’s get straight to the point. What should you do in order to acquire that business software that could make your organization achieve its goals? The answer to this is pretty straightforward: evaluate and buy that right business software. Yes, that’s what you need to do and here’s the best manual from ITQlick.com that could certainly help you in doing that strategically.
 
Consider the Needs of Your Organization
Let’s assume that at this point, the entire management team agreed that you are ready to invest on a certain software application. The budget has been compromised and the key persons who will be involved in the acquisition process were already identified. Therefore, it’s time to approach things the project management way.
 
Define the Project
Every business software solution is categorized base on application type, features, deployment model, market size and pricing model. Remember that our objective here is to evaluate and buy a business software product that will fit into the size and present needs of your business. So what the project management team should try to deal with first is to define the real requirements of your business exactly base on the categories set by the software industry. Moreover, by doing this activity, you are already narrowing down your search for the right solution. Now, consider bringing this list of FAQs to the project management and aim to come up with clear-cut answers.
 
  1. What type of software is needed? Is it Integrated-Suite, Best-of-Breed or Industry-Specific? Ask your CEO’s main agenda and find the perfect match from these available options.
  2. What are the core and secondary features? Are you looking for basic, advanced or hi-end features? List down the specific features per category and allow the department managers and supervisors to give their insights on this list.
  3. How are you going to deploy the system? Would it be on-premise, cloud-based, hosted, or mobile-based? Weigh these options with the help of your CIO.
  4. Are you going for Tier 1, Tier 2 or Tier 3 vendors? Their offered solutions are base on the size of their target market - SMEs, MNEs or start-ups. Seek your CFO’s advice as it is important to match your financial capacity against the cost of the solution that the providers have for you.
  5. Are you willing to pay for the perpetuity software license or a subscription-based solution is way better? How many users are there and what would be their roles in using the system? Solicit feedbacks from future end users for they know better what challenges and risks might possibly come along their way when they’re using the system.
 
Finalize the BOM or List of Requirements
After providing definite answers on the above questions, we can say that the project has already been defined. Your procurement team is now ready to do their role in the acquisition process of this solution. However, in order for them to execute their job properly, they must have the complete list of requirements - features, specifications, hardware, and the software product. In other words, the Bill-of-Materials (BOM) that is final, complete and well-prepared must be handed over to the procurement director. Needless to say, it is very important that everybody is following the company purchasing and procurement protocols at all times.  
 
Request for Proposal (RFP)
The RFP process will bring everything into formality. Since you’re more likely in a line of business that doesn’t regularly buy software products, it is of critical importance that your RFP is well-structured before you send it to your prospect solution providers.
 
Draft the RFP
An RFP that contains all the relevant information as discussed during the project management meetings will enable the providers to return back to you their proposal that is complete and substantial. Therefore, your RFP should basically contain the following:
 
Brief Introduction
  • Company Name
  • Mission and Goals
  • Purpose of the RFP (or the need for software solution)
Business Background
  • Organizational Structure
  • Current Situation (IT infrastructure, system currently in-use, system issues and desired solutions, etc.)
  • Major Objectives of the Software Purchase
Request for Specific Requirements
  • Solution Functionality
  • System Specifications
  • Vendor Company Information
  • Price Model, Service Plans, Package Options
Other Important Inquiries (if necessary)
 
Send the RFP
Well-structured RFP will bring a lot of advantages especially when the proposals from various providers are received and then subjected for review and analysis. Send your RFP to at least three to five providers (or prospects which you have already shortlisted during the project definition phase). Depending on the complexity of the solution, most vendors will send their proposal in a matter of time, which could be around 4 to 6 weeks for Integrated-Suite solution.
 
Why still send RFP?
Is there really a need for RFP if your preferred solution (like cloud-based) and the service plans or packages are already displayed on the vendor’s website? Well, yes, you still need to undergo the RFP process. For most sales people, they certainly know that those figures appearing in the vendor’s website are usually the “list price” and not the “actual price”. More importantly, the vendor’s proposal (response to RFP) will serve as your main basis for the negotiation. Therefore, sending an RFP is a strict requirement.
 
Follow up questions relevant to RFP
More often than not, questions and concerns will be raised by the vendors to whom you send the RFP. You have to entertain them with utmost professionalism. Solution providers who are seeking further clarifications relevant to the RFP are consisting of professional software experts who wants to help your organization as much as they can. Entertain them but at the same time, always be cautious when providing additional information which you know is confidential or proprietary.
 
Evaluate the Proposals
Always refer to your finalized BOM when tabulating the contents of each proposal. Part of this process is to check the features that are available from this certain vendor and to cross out those that are not. While using spreadsheet aids the tabulation process, laying down the document proposals on the table and allowing your project management team to review them one by one should always be conducted. Evaluating the proposals in full force can help strengthen your decision-making process. Have another round of brain-storming session and come with the name of your preferred solution provider.
 
When selecting the final vendor, always promote the best interest of your organization. Consider answering these questions with full sincerity.
 
  1. Which vendor can provide the long-term benefits to your organization?
  2. Which vendor can provide the best and honest service from acquisition to full implementation?
  3. Which vendor is willing to devote most of its time in better serving its client?
 
Contact this solution provider and in your own strategic approach, try to get the answers to those three important questions above. In most cases, vendor who really wants to prove its craft will offer product demos on a higher level. Others will even invite you to check their already deployed and working systems. Feel free to connect with this type of vendor. Conduct simulation and testing, be it a cloud-based or on-premise solution. Examine all aspects and angles especially those that your project management team want to really know in-depth. For as long as it could help you arrive at a better decision, consider doing all the options available – for the interest of the organization.
 
Enter the Negotiation Process
Most solutions providers can be flexible in terms of pricing. Although the final say is oftentimes on the mouth of the sales person from the vendor’s side, a good negotiation process can always deliver a win-win situation to both parties involve. While negotiation sometimes cannot be settled in one sitting session, always be honest with your intentions whenever negotiating with your provider. If it’s about your budget, justify it with clarity. If it’s about their service plans, tell them what’s lacking or missing on their solution. At the end of the day, the most important event that should happen is that both of you are shaking hands because of a well done negotiation process.
 
Seal the Contract
So what are you going to do on a contract that involves a significant amount of investment? There are three project management approaches for this.
 
  1. Pass the ball to you legal team. They know what to do and more or less they will tell you if there is something wrong with the contract. Give them enough time to review before they affix their signature and then finally seal the contract.
  2. Hire a consultant base on the technical aspect that you want to clarify in the contract. If it’s the Scope of Work (SOW), a software implementation expert is the right person. If it is related to complex legal terms and conditions, a lawyer can help. If it has something to do with money, invite an accountant to conduct a thorough review and computation if necessary.
  3. Always consider consulting your project management team. Remember that the CIO, CFO and CEO are all team members. They will be the signatories and they know what’s best for the interest of the company when signing a contract agreement.
 
From evaluation to buying stage, it is important that the project manager must take full responsibility of monitoring all the works identified and distributed among team members. This is why delegating the right project manager is also an important consideration when buying a business software solution. And again, ITQlick.com wants to emphasize that whatever the size of your company is, using the project management approach will always lead you into a better outcome – that is getting what you paid for the right business software solution. 

Finding the right business software for your business
Proper business software selections are the precursor to successful deployment and business growth. Finding the right solutions doesnít have to be complicated, and it doesnít have to take days or weeks of your time.

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Auditor - Shlomi Lavi

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Shlomi Lavi is an entrepreneur and founder of ITQlick.com. He holds a Bachelor of Science (B.Sc.) in Information Systems Engineering from Ben Gurion University in Israel. Shlomi brings 17 years of global IT and IS management experience as a consultant and implementation expert for small, medium and large-sized (global) companies. Shlomi’s goal is to share the best knowledge and news about information systems so you can make smarter buying decisions for your business.