What is the Preconstruction Process?

When The Beck Group began looking to upgrade their estimating software from Sage Timberline, it was important for them to choose a technology that would help them better capitalize on an integrated model of construction. As an advocate of innovation, Brent Pilgrim, the National Director of Preconstruction at the Beck Group, knew that revolutionary technology tying preconstruction workflows together and helping stakeholders collaborate better wasn’t just for the future.

Inefficient processes like piecing together estimates from multiple tools and having to copy and paste a lot of information between programs is outdated when there is technology that enables preconstruction teams to perform all their necessary tasks in one software.

Why is being able to capture your historical construction cost data so important? Because once you have a more efficient process, more time can be spent on adding value to a project. As Brent likes to say, “Imagine preconstruction teams no longer performing the manual process of counting widgets, assigning a cost, and evaluating disparities in estimates. Imagine, instead, that our teams are experts in statistical analysis, wizards wielding artificial intelligence, and Masters of Risk model simulation.”

What is Preconstruction?

The preconstruction phase of a project is critical to keeping a construction project on budget and on schedule.

During preconstruction, preconstruction professionals estimate the total cost of a building, define the scope of work, collect bids from sub and specialty contractors, determine labor and equipment costs and needs, determine constructability of the design, spot and stop potential risks in the field, and offer the best solutions to make the building better, all while staying on budget and schedule.

Preconstruction used to be the phase of the building process where estimators would estimate the cost of a building based on a set of design plans. Cost estimators would deliver a conceptual estimate to owners detailing the scope of work, the cost of building the building, and an estimated timeline to project completion.

Traditionally, the project was then passed over into the field and precon was only again involved when there were change orders. Design. Preconstruction. Construction. Each phase worked an isolated bubble introducing a high amount of risk for the project to go overbudget and over deadline.

But as Brent said we are in a new era of preconstruction where design, owners, subs, precon, and operations are coming together to the table early on in the life of a project to collaboratively make the best project decisions, eliminate risk, and keep the project on schedule and on budget for the best outcome for the owner and for those who live and work in those buildings.

The preconstruction phase of a project is now a vital step in delivering an exceptional customer experience by providing a high-quality building within the owner’s budget that exceeds the owner’s expectations in greener building materials, use of space, minimizing costs, and increasing satisfaction in the people who live and work in those buildings.

During preconstruction, teams:

Bring in specialty subcontractors and solicit bids.
Collaborate with architects and engineers to solve conflicts between budget restraints and aesthetics.
Analyze and prevent potential risk during construction.
Develop realistic timelines and major milestones.
Organize equipment, labor, and material costs and delivery.

What Does the Future Preconstruction Process Look Like?

Using data-driven software like DESTINI Estimator, preconstruction teams are using information from previous successful projects to deliver accurate estimates in record time with the added value of providing the owner with greener and leaner building methods, alternative building materials, and options on how to better make use of a building’s space—whether that’s more sunlight in a school, more hospital beds in an emergency room, or more open air spaces in offices and apartment buildings.

With integrated preconstruction technology, you can look at the variations between estimate iterations and quickly see what’s changed and then connect the data throughout the life of the project and share that data into the field.

Stewart Carroll, Chief Customer Officer at Beck Technology says, “the art of estimating is the ability to interpret and predict. The quicker we can get to an accurate, valid, transparent estimate for that base case, we then need to spend as much time as humanely possible looking for better solutions to that project.”

Modern notebook computer with future technology media symbols

How are Preconstruction Teams Doing That Now?

By bringing preconstruction in early in the life of the project. In some cases, even before design. “The boundaries between construction phases are blurring,” says Andrew Zukowski, co-founder of Join preconstruction software. With all teams involved in a project sharing information, you can come up with the right answer, not just the answer that benefits one team.

Eighty percent of architects believe that early collaboration between teams is what drives project success and helps build trusted relationships.

Keeping things close to the chest and withholding information benefits no one; least of all the owner. And dissatisfied owners directly affect your bottom line.

Stewart says, “Today's preconstruction technology is less about quantity takeoff and more about carrying a complete project cost based on assumptions that can be communicated and changed so that the impact on the project can be understood by all stakeholders. And this type of technology has been driven by the target value design process.”

With your client’s journey now more important than ever, it is precon’s responsibility to not only to shape that story, but to share that story with owners.

Brian Parker, a Senior Estimator at Sundt says, “The DESTINI product suite definitely helps us win projects. Clients receive a good visual and a price, just what our clients are looking for. They want to know what the building will look like and how much it will cost. They don’t want to spend time and money having an architect design something and then realize they can’t afford it. The DESTINI products give clients more confidence and insight as well as input in the preconstruction process.” 

One of the steps in the preconstruction process is finding time to add this value to owners. The only way you can do that is by auditing what takes up most of your time. For most estimators that is locating and moving data around and doing takeoff.

During this process, much of your information is lost. Stewart says, “There’s an enormous amount of value in the data that is lost.”

Capturing your construction data from the beginning of the project’s lifecycle (the conceptual phase) allows you to track all the major milestones, so on the next project you can use the data to make data-backed decisions in your costs. When you start your next similar project, the data is available before construction begins. Meaning, you make better project decisions quicker.

Managing Risk

With integrated technology that brings all your workflows into one program, where data is instantly available, you can look at the variations between estimate iterations to see what’s changed. Comparing data allows you to catch problems before they arise in the field. Changes are cheaper when caught earlier.

Collaboration, Not Reaction

When you have the data and the visualization tools to show that data, you have the research to prove what works and what doesn’t. You can easily explain the why behind your project decisions in a way each owner understands. Being transparent about where the numbers come from allows everyone to produce the best solutions for the project, not just ones that benefit one party.

Collaboration leads to everyone winning. The best way to maintain good relationships with your subs and with owners is to be looking out for everyone’s profitability, not just your own.

If your company is moving in the direction of using more integrated building methods, you need the tools that support these new methods. The preconstruction process is changing and the old ways of doing things isare slowly becoming unsupported. Owners are no longer surprised by GCs who introduce innovation. Owners are now expecting innovation. And thus, the preconstruction process is changing.

Estimating teams embracing these new workflows are wowing customers and winning more repeat work.

Improve your preconstruction process today.

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