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CHAPTER

13
Computers

T he harnessing of electronics has had a terrific impact on the con-

struction industry. A mere three decades ago, estimates were jotted
on paper in the field, carried to the desk, and computed on mechani-
cal calculators or adding machines, or simply extended by hand. If the
person doing the math was lucky enough to have a tape coming out of
the machine, he or she could go up and down the thin strip of paper
with a red pencil, trying to make sure that all of the line items from the
takeoff had been included in the calculations.
Obviously, this was a painstaking process with plenty of room for
error. It took a long time to put all of these pieces together and do, then
recheck, the math. The estimator’s concern about mistakes was
painful, and margins for error were often put into bids at a high per-
centage rate to protect the contractor.
The first major breakthrough in electronics was the calculator. Cal-
culators saved roofers time and kept them from being confined to a
desk.
Next, the answering machine for telephones appeared. This meant
that the small to medium-sized contractor who couldn’t afford a
phone-answering person didn’t miss calls from potential customers—
another giant breakthrough for roofers.

415
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416 CHAPTER THIRTEEN

Then, around 25 years ago, came the first affordable personal com-
puters, and the roofing industry was completely changed, forever. At
first, the PCs—Macs, Osbornes, IBM XTs and ATs—were prohibitively
expensive for many firms. But within a short time, clones from the
Pacific Rim hit the market, and the roofer could buy one for a few hun-
dred dollars. With an early package of spreadsheet software like Lotus
123 or Visicalc, a simple roof estimate could be done in minutes rather
than hours.
The difference in ease and accuracy between estimating with a
spreadsheet and using a calculator with a pad of paper was exponen-
tial—the estimator could make a template. All of the tasks to be done
during the roofing operation could be listed as line items with dollar
amounts next to them; the software could remember the cost of apply-
ing a square of shingles. The computer extended the numbers, and the
laborious task of using a calculator was at an end. The invoices,
change orders, and even accounting were stored in files, and the cen-
tral processing unit could run the numbers faster and more accurately
than any person. Human beings are not as good at performing boring
tasks over and over again as computers are.
Today roofing contractors must use all the available modern tech-
niques and technologies available to them in order to keep up with the
marketplace. The time it takes to learn how to use computers and their
software packages is relatively short. For example, a contractor or an
employee who has little or no formal accounting experience can learn
how to enter the required information. Then a computer can do all of
the complex sorting and calculating that would have required years of
training in times past.
If the computer system is user-friendly enough, everyone, includ-
ing roofing contractors and employees, can save time by streamlining
paperwork. Accuracy of bidding, winning close bids, massaging aged
receivables: The many hours of drudgery eliminated by the correct use
of computers can amount to large cash savings on a daily basis.

Employing Computers Rather than Staff

As the brief history above suggests, the days of guesstimating a job’s
cost and a client’s bill are long past. Gone also are the days of keeping
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COMPUTERS
417
records on old invoices and brown paper bags, of tracking labor hours
and overtime costs by hand. In the electronic age, these activities are
outdated. And obviously, removing considerable chunks of the paper
trail can reduce the need to keep increasing payroll.
A one-time investment of several thousand dollars for computers,
software, a laser printer, facilities for the Web, and the other items
needed for a system can pay for itself quickly in estimating alone—
from enhanced consistency and accuracy as well as timeliness. Esti-
mating is only a part of the workload that computers will handle. They
represent one outlay of cash with minor upkeep expenses and can
slow the ongoing need to add staff in numerous departments: manage-
ment, accounting, estimating, scheduling, delivery, etc. And, as we all
know, adding more staff is not a one-time outlay of cash.
There are many ways in which a construction company can profit
from computerization. Estimating, control of payables during jobs,
reducing workers’ compensation costs, obtaining vendor discounts,
staying on top of receivables, eliminating bookkeeping costs—each
roofer has his or her own list. But—and we can’t emphasize this often
enough—one cost savings that runs through the activities of any type
of firm is that computers can be used rather than hiring more people.
A wide spectrum of hardware and software is now available at amaz-
ingly low costs. The computer and programs required by individual
roofing contractors depend largely on the size of the company and how
many tasks the computer is expected to perform. Figure 13-1 offers
examples of items your firm may want to automate. It is on the enclosed
CD; download it into your computer and print out several copies. Figure
13-2 is a blank checklist to use for writing down your own ideas. Have
everyone fill it out, then consolidate the responses into a review sheet
for decision making about automating your company’s paper trail.

Automating the Office

Now that you have some overview of what you want a new computer
system or an upgrade of your old system to do, let’s take a look at some
of the basic overall concepts involved with automating the paper trail.
First of all, think through what happens at your office every day:
Possible new jobs come in, typically by phone; reports and requests
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418 CHAPTER THIRTEEN

✓ Item Notes
Keep an updated to-do list
Record takeoffs in the field
Do takeoffs straight from blue-
prints, electronically
Calculate estimates while take-
offs are being done
Prepare a professional-looking
bid sheet for the client
Control costs during each job
phase
Reduce workers’ compensation
costs by tracking work hours by
risk category
Organize accounts payable for
faster collections
Speed up and increase the
collection of accounts receiv-
able
Eliminate external service
bureau costs
Improve clerical productivity

F I G U R E 1 3 - 1 Computer wish list—what we would like to be able to do.

from the jobs that are being performed in the field come in; checks
come in; takeoffs of potential new jobs that need to be estimated are
completed; lawsuits for construction defects claims come in; checks
go out to vendors; equipment is purchased; payroll is cut—even for a
small business, the list of events that take place each week is immense.
The important thing is to go back and review the wish list. The
hardware and software for automating many of the tasks you wish to
automate are now readily available in the marketplace. However, there
are several obstacles that will arise as you begin to pursue automation
seriously. The first problem is where to find the software and hard-
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COMPUTERS
419
✓ Item Notes

F I G U R E 1 3 - 2 Computer wish list—what we would like to be able to do.

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420 CHAPTER THIRTEEN

ware that will do what you want to do. The next obstacle you will meet
is trying to figure out which items are appropriate for your firm. Then
there will come several other major hurdles to clear: installation of the
hardware and software; learning to use them; implementing their
potential as a part of the day-to-day operation of your firm.
There are two major mistakes that firms typically make when they
attempt to upgrade computer systems or install new ones: being afraid
to invest fully in automation, and failing to establish an overall under-
standing of what is needed in order to get the tasks on one’s wish list
taken care of in a real, nuts-and-bolts way.
It is important to remember the idea presented in the previous
chapter: It is very easy to forget that roofing is first of all a business,
and that it is the business of roofing that presents the arena in which
the tradesperson can practice his or her craft as a skillful roofer.
When you purchase a truck or a piece of equipment for the field, it
is immediately obvious how valuable the item will be. Computers
will do many tasks, but all too often the contractor has only a vague
idea of what can actually be done and how to use this time-saving
equipment.
This is why we have presented the list above, to help focus on what
needs to get done. The next step is to find someone who knows a lot
about what can be done, what hardware and software should be pur-
chased with the initial investment, where that can be done most rea-
sonably, how it can be paid for, what the installation entails, and how
thorough training can most simply be achieved.
The principal will often have difficulty seeing this as a simple part
of the business, where the point is to install the computers and keep
the business moving with as little interruption as possible. In almost
all cases, an outside consultant who is familiar with construction
offices should be used as a subcontractor. Just as a general contractor
would be foolish to try to use the carpenters to install a roof, rather
than hiring a roofing contractor, it is foolhardy for the principal to try
to automate the firm—he or she can probably do it, but in very few
cases as skillfully as he or she can roof buildings.
The real cost of computers is not the hardware, software, and con-
sultants—keystrokes are what cost money. Keystrokes represent an
actual cost of doing business in the form of labor. The more keystrokes
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COMPUTERS
421
involved in getting the daily task of roofing done, the less profitable
the computer installation will be.
In other words, if the owner of the company is reading books, call-
ing software companies, and learning code, the actual tasks that create
cash flow from roofing are being overlooked. This would be like trying
to save money by cutting, bending, and installing sheet metal when
your firm has always subcontracted the work out—the crew would be
stumbling around the site trying to figure out what to do rather than
going ahead with the roof application.
It is imperative that the owner think of the automation process in
this same way—that is, like a true business professional. The whole
subject of jobbing out work was addressed in Chap. 2—it is so impor-
tant that we devoted an entire section to it. And it cannot be empha-
sized strongly enough that a highly knowledgeable computer
consultant who can sign a contract for the cost of the installation will
pay for the service many times over. Remember, the hardware, soft-
ware, and consultant are not what is expensive—keystrokes are what
cost money.
There are people all over the country who specialize in construc-
tion systems. You can find them through roofing organizations, the
Yellow Pages, the Internet, software manufacturers, etc. After find-
ing a consultant, sit down with him or her and discuss your wish
list. If the consultant has an immediate understanding of what you
are talking about and can listen to you carefully, you may have the
right person.
Be sure to take the time to get a list of satisfied clients, preferably
roofers. Call the clients up and, if they will let you, visit their places of
business and review what they are doing with the system. Whether
this option is available or not, make certain that the prospective con-
sultant lays out your office for you in a diagram and shows you how all
of the components will work together in a language that you can
understand.

A Brief Look at Software

A computer system should always be developed to meet the overall
needs of the company. The workhorse for accomplishing those tasks
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422 CHAPTER THIRTEEN

will be the software; after it is chosen, appropriate hardware can be

configured to the software’s requirements.
The most important thing to remember is that keystrokes are what
cost money—not the initial investment. Shop wisely, but don’t be
penny-wise and pound-foolish, and by all means use a consultant with
a broad overview to get you up and running.
The ideal system will include software that allows your firm to
work as closely to the way it already does as possible, with as few key-
strokes as possible. Figure 13-3 is a typical breakdown of what a well-
thought-through system will do. This table is available on the
CD-ROM that accompanies this book. Open the files on the CD by
clicking on the D drive (or whatever drive letter your CD player is
assigned). Print the table out for everyone to review and offer feed-
back. Compare it with your wish list and add anything necessary to
adjust it to fit your firm.

Uses of Computers for a Roofing Firm

Job Comes In to Bid
If there is a set of plans, the estimator does a takeoff with a digitizer (a
moving wheel like a scale wheel, or some other instrument that auto-
matically takes off measurements from a set of plans), which automat-
ically dumps the measurements of the roof into the estimating
package. If there are no plans, the estimator takes the measurements
with an electronic measuring device during a site visit and dumps this
information directly into a template in a notebook computer; it can
then be downloaded back at headquarters or a printout can be done
immediately, in the field.
For simple work that does not require meetings, discussion, prod-
uct pricing, or other complications, the bid can be produced on site,
along with a contract document to be signed by the building owner.
Roughing out estimates without extensive office or on-site work in
order to land the job can save a good deal of cash on all of the bids the
company loses each year. If your rough price lands you the job or puts
you in the running, then you can tighten up the estimate before going
to contract. This tends to work especially well with customers who
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COMPUTERS
423
✓ Item Notes
Job comes in to bid Info about jobs should be
entered into the system only
once. Architects, general con-
tractors, building owners—the
software should add them to a
database that will pass the infor-
mation on to all parts of the
business (marketing, sales, esti-
mating, accounting, etc.)—
always saving keystrokes.
Estimating begins Do takeoffs straight from blue-
prints with a digitizer. Software
calculates estimates while take-
offs are being done. Software
prepares materials lists and after
review sends to vendors.
Get the bid out to the customer Software prepares a profession-
al-looking bid sheet for the
client and enters the company
in the marketing database.
Bid is accepted Software allows staff to open a
new account linked to all
accounts and the entire busi-
ness. Scheduling is completed.
Materials orders are placed.
Control costs during each job Job is mobilized in the field.
phase Materials deliveries are sched-
uled.
Job is tracked by computers Software does payroll. It
reduces workers’ compensation
costs by tracking work hours by
risk category. All payables are
done through computers.

F I G U R E 1 3 - 3 What a well-designed system can do for a company.

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424 CHAPTER THIRTEEN

✓ Item Notes
Organize accounts receivable Payables are handled in a timely
for faster collections fashion. Receivables reports are
always available. All tax infor-
mation is extracted and com-
piled as receivables and
payables come in and go out.
Clerical productivity is
increased.
Job is concluded Demobilization is tracked and
profit and loss figures are com-
puted automatically.
Job-cost accounting is com- The job becomes a part of the
pleted company’s overall accounting
picture. Reports concerning the
real cost of job, profit and loss,
etc., are at the owner’s finger-
tips.

F I G U R E 1 3 - 3 (Continued)

can describe the job and site over the phone, architects, property man-
agement firms, and others with whom your firm does a large volume of
work on an ongoing basis.
This type of estimating is done directly from the blueprints. A dig-
itizer is used for the takeoff from the surface of the plan. The device
traces the dimensioned drawing and dumps the areas of the roof into
the computer’s estimating package. The estimator reviews what is on
the estimating sheet and the plans, and then the computer runs a total.
This is an amazing approach for estimators who have never used it
before. The digitizer picks up dimensions and counts, and the estima-
tor guides it to the proper line item: demolition, felt, shingles, etc.
Then the computer extends everything. The most important thing is
that the estimator have an experienced eye for such things as difficult
access or disposal of hazardous materials, so that these can be
included in the line items.
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COMPUTERS
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Moving to Contract and Job-Cost Accounting
The next step will be discussions with the principals who want the job
done, and then come contract documents and accounting.
The new generations of software for people in the building indus-
try are very sophisticated, and dedicated software for small systems
has been around for well over a decade.
This wrap-around software allows a high-quality printout of the
original estimate to be printed or faxed out; if the principals are inter-
ested, the estimate can be revised and printed, contract documents
produced, and a job-cost account opened for the contract.
Naturally, there are keystrokes involved, but while all parties must
still take great care to see that what comes out of the system is accu-
rate, the number of keystrokes and calculations that must be per-
formed by staff can be reduced drastically from that required with
hand-done systems, or even earlier spreadsheet/word processor com-
puter systems.

Moving the Job into the Field

After the account is opened in the wrap-around software, the field
must be dispatched. Assigning crew and materials; purchasing and/or
renting equipment; organizing with the general contractor, her or his
other subcontractors, and any subcontractors the roofer must contract
with; and scheduling are all time-consuming operations that can be
highly streamlined with automation. (See Fig. 13-4.)

Materials Lists Right from the Estimate

This is a typical function of newer software for building industry pro-
fessionals. The roofer can get a list produced right from the estimate,
and the project manager, the job foreman, or even a highly competent
gofer can do the shopping—fax it to several vendors and see if they can
sharpen their pencils to get the sale.
The Net can be valuable when it comes to looking for interesting
add-ons to sell and working on change orders. Appendix A lists prod-
ucts as diverse as photovoltaic shingles (they produce electricity for
the home from sunlight that hits the roof) and various types of unique
slate shingles that can be bought right off the Net.
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426 CHAPTER THIRTEEN

F I G U R E 1 3 - 4 Jobsite electronics.
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COMPUTERS
427
Scheduling and Job Performance
This is another task that the job superintendent can take care of on a
laptop. The most important part of scheduling is rescheduling. As we
all know, jobs are very often fraught with delays: architectural change
orders, weather, poor construction management—the list is endless,
often frustrating, and at times devastating to the financial outcome of
a contract.
This situation makes the ability to reschedule quickly and accu-
rately an imperative, along with producing any change orders that are
required as the schedule changes.
If a foreman at the jobsite is equipped with a laptop, a portable laser
printer, and e-mail and fax capability, a great many problems can be
ironed out instantly, without labor downtime and/or progress delays.
For example, suppose that the crew has started to place underlay-
ment and the foreman notices that several junctions of vertical walls to
pitched and flat areas of roof are not detailed correctly and changes are
required. The architect is not in the office, and the general contractor’s
superintendent is not available.
Without automation, this situation could have serious ramifica-
tions: holding up a crew with the meter running; several days of down-
time due to inclement weather; missing some extra cash flow from a
change order. But at a site that is electronically up to date, the foreman
can get through on the architect’s cell phone, fax a sketch of the roof
junction, get a signed version of the change order back by fax, and
move on with the deadline.

After the Job Is Closed

Of course, the final request for payment must be presented to the client
and the job must become a part of the accounting system. Once the
invoices are out, they become a part of accounts receivable, which
must be tracked for aging.
In wrap-around software, reports are available that clearly delin-
eate aged billing. They compute whatever small amount of interest is
charged the client for the aged invoice and even print out an addressed
invoice that can be inserted into an inexpensive glassine envelope.
They can even be faxed or sent by e-mail and funded electronically.
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428 CHAPTER THIRTEEN

Any of the modern, worthwhile types of job-cost accounting soft-

ware also offers numerous other reports that can help with manage-
ment: reports on profit and loss, financial status, average age of billing,
names of old customers for marketing campaigns, and a host of other
information like accounting trails that is invaluable and very time-
consuming to get from the accounting system by hand. Use the list in
Fig. 13-5 when you are considering accounting software.

Looking at the Basic Software

Unless you are a very sophisticated computer user or the principal of
an extremely large roofing firm that uses big, complex computer sys-
tems, there are several pieces of software with which you will proba-
bly not need to trouble yourself—the operating system, the shell,
communications software, etc.
The operating system is the software (DOS, Unix, Linux, etc.) that
coordinates you (your input into the computer through the keyboard,
a microphone, or whatever) with the CPU (central processing unit or
main computer chip) and all the devices like monitors, printers, etc.
Microsoft’s DOS is the most common operating system. Many
sophisticated computer people will tell you that it is not the best sys-
tem; however, it is the most widespread operating software for small
systems and therefore the one for which it is simplest to find consul-
tants and office staff familiar with its installation and use.
The shell is the software that interfaces all of the software and gives
you swift access to it, including the software that controls outside
devices like printers, digital cameras, digitizers, etc. Again, Microsoft
has far and away the most widely used shell—Windows. This book is
about roofing, not comparing software; therefore, we are not spending
a lengthy amount of time on the subject. In order to avoid being dis-
tracted from your business as a roofer, sticking with the most widely
used shell, which is Windows, may be the most efficient route. When
Microsoft becomes obsolete, simply pay your consultant to replace it
with a Linux application.
Chances are that MS-DOS and Windows will come installed on
your computer and the roofing software will be set up to work with the
Microsoft packages. Typically, it will be wisest—unless you already
have very strong reasons for doing otherwise—not to worry about the
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429
✓ Feature Notes

Profit and loss Need profit and loss copy for

3 years

Financial status Copy of all reports

Average age of billing Report that shows

Old customers, linked to mail- Show us how it works

ing for marketing campaigns

Direct link from estimating to Show us the link

accounting

Accounting trails Printed for accountant—need

example

Estimating link to digitizers Show us, and need list of digi-

for takeoffs tizers that work with it

On-line training and help line Give us # so we can get list

Cost of setup on-site How much—talk with old

clients

Available discounts on hard- Does it do this from estimating?

ware

Is scheduling included? What packs does it talk to?

Examples of all management

reports

Other features

F I G U R E 1 3 - 5 Questions to ask when reviewing wrap-around software.

operating system and shell, but just go with the flow until you are very
sophisticated with computers.
The next type of software is wrap-around generic software pack-
ages. WordPerfect Office and Microsoft Office are the two main pack-
ages in the market today. Again, since Microsoft has so much presence
in the marketplace, it may be best for you to make certain that the com-
puter system you buy comes loaded with Microsoft Office.
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430 CHAPTER THIRTEEN

These packages contain word processing software, a spreadsheet,

and a database as the primary workhorses for generic office tasks. They
also include numerous other pieces of software like web connectivity
and even marketing presentation packages.
See Fig. 13-6 for a concise look at this information. You will need
an operating system, a shell, and a wrap package for general office
tasks. Under the following headings, we examine the tasks that are
typical for a roofing firm: marketing, bidding, closing the bid, con-
tracts, job management, and accounting.

MARKETING
Typically, the tasks performed when working on marketing are accom-
plished with word processing and graphics software. Ordinarily, these
two functions can be found in the wrap-around software packages like
Microsoft Office. There are so many typefaces and drawings available
with these packages that the office’s word processing person can often
handle simple marketing campaigns—newspaper ads, brochures, fly-
ers, etc.
For more sophisticated, large-scale marketing campaigns, it will
probably be wiser to shop the artwork out and concentrate on the busi-
ness of roofing.
Remember that everything about your firm is a part of marketing,
not just your ability to estimate and perform. The look of staff mem-
bers, of equipment, of letterhead and business cards, of bid presenta-
tions: We all watch one another subconsciously, and the more
confidence we have in the person we are dealing with, the more likely
we are to enlist that person’s services. Just like a good computer con-
sultant, a good, local marketing person used on a limited basis can
save your firm money and be a big help in developing a strong pres-
ence in your area of operation.

WORD PROCESSING
Typically, the computers a firm buys today will have a good deal of soft-
ware onboard already, as mentioned above. If you shop with care, you
should be able to purchase a system with Microsoft Office on board.
The word processing software that is included in Office is Word.
Word is a quality product and will serve any roofing firm well. The CD
with this book is completely compatible with Word.
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F I G U R E 1 3 - 6 Computer requirements for a roofing firm.

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432 CHAPTER THIRTEEN

The main tasks for which you will use word processing are letters,
memos, contracts, change orders, and the other documents that are
part of the paper trail.

SPREADSHEETS
Spreadsheet software is basically designed for computation of figures.
The format is typically a grid of rows and columns, just like a colum-
nar pad of paper. You insert simple codes into the boxes and fill in the
numbers, and the software does the math for you.
Again, try to buy computers that have Office onboard. The spread-
sheet software that is part of Office is Excel. It is quality software and
can be used effectively for the business of roofing.
Spreadsheets are very handy for any math tasks: estimating, track-
ing real-world estimate-to-actual costs on jobs, leveling cash, forecast-
ing cash, etc. Successful contractors are accurate estimators. Before
roofing contractors make any money, they must get a job and complete
it. Getting the job usually requires that the contractor estimate the cost
and present a bid.
Contractors develop estimating techniques through years of educa-
tion, experience, and practice. Techniques are often personal and, for
competitive reasons, private. However, one truth holds across the
board: Roofing success hangs on accurate estimating.
Computer software is imperative in this day and age; it can, with-
out a doubt, enhance the three characteristics of quality estimating:
consistency, accuracy, and completeness.
Advanced software systems feature wrap-around work packages. A
work package allows roofing contractors to prepare a takeoff by enter-
ing the roof’s dimensions and any other required items.
To take off a four-ply built-up roof, for example, enter the roof’s
length, width, and slope. The work package automatically estimates
labor, material, and equipment costs for all the felts, asphalt, surfaces,
fasteners, and any other items related to the roof. Based on the length
of the gravel stop, the work package counts the number of joints
required, adds the proper amount of material for the lap, and rounds
up to the next 10-foot piece.
From this takeoff, the work package calculates estimated labor and
material costs for numerous items, including insulation, fasteners,
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433
felts, and surfaces, and then takes into account waste factors. This
information is then transferred to a complete bill of materials and a
detailed field productivity report.
These intelligent work packages allow the roofing contractor to pre-
pare and generate more accurate bids in less time. The result is, hope-
fully, more winning bids and more free time during which the
contractor can perform other tasks like socializing with potential
clients, leveling and forecasting, and rethinking personal and business
goals.
Consistency suggests that each estimate follow a similar process.
The veteran roofer knows the materials needed, the relationships of
various materials to one another (e.g., adhesive to square foot of mem-
brane ratios), the labor required, and other normal costs associated
with similar jobs.
Accuracy encompasses mathematical correctness. Most experi-
enced contractors recognize the importance of reviewing all calcula-
tions for accuracy. Completeness means accounting for all costs
associated with the job. It is here that the experienced contractor might
include an unusual cost that an inexperienced contractor might over-
look. The contractor’s track record of past work is the most valuable
accuracy tool. As we have said, that information will come from your
past records as you start using new software, and later can be updated
continually from the job-cost accounting software.
Software designed to streamline estimating tasks falls into two
groups, dedicated estimating software and spreadsheets used for esti-
mating. Prepackaged estimating software usually suggests general rela-
tionships between items, but requires the contractor to add to or
replace these generic suggestions in order to customize the software.
In the majority of cases, it is wisest to buy dedicated estimating
software that works with the job-cost accounting software you
choose. Make sure the vendor provides the ability to customize the
way it works for your company. Again, it is preferable to use a con-
sultant to customize the estimating software for you. The vendor of
the package should be able to do it in house or provide a list of qual-
ified consultants.
Independent spreadsheet programs require the user to have a
working knowledge of their most complex functions in order to truly
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434 CHAPTER THIRTEEN

automate estimating and massage data from the accounting software.

It also takes a good deal of time to customize spreadsheets so that
they perform all the tasks involved with your estimating style simply
and quickly. The time invested in learning the software and cus-
tomizing the estimating sheet is well rewarded, as the result is a pro-
fessional estimate that reflects the judgments of the user. But this
will be time during which you will not be making money roofing—
hire a consultant.
If you decide to try estimating with a spreadsheet package, use
your manual estimate form as the basis for your computerized spread-
sheet. Enter the relationships between the components on your man-
ual sheet into the computer. The relationships are entered as
mathematical functions. Consult the instruction manual that came
with your software to determine the format to use when entering
these mathematical functions. Always read and follow the instruc-
tions in the user’s manual.
At this point in time, even though you will probably get spread-
sheet software for free with your computers, it is generally the best
move to buy job-cost accounting software that includes estimating
software which is formatted and waiting for you to enter your line
items and costs.
Estimating software is a powerful tool. After you have learned to
adapt it to your company, you will see its effects all the time. Bids
often contain hundreds of variables, any one of which can make the
difference between winning and losing a job and the resulting profit or
loss. The estimating software can generate accurate estimates quickly
and easily. It can calculate the final bid price, list items, apply quanti-
ties and unit costs, including overhead and profit margins, and then
add the numbers to get a price. The program can even compare your
markup margin against those of your competitors.

Testing the System

Once you get your new software up and running, run parallel systems
for a while. Whether you are replacing an older computer system or
getting automated for the first time, prepare estimates manually or on
the old computer and on the new system in order to verify the accu-
racy of the new work. Once you have made modifications and verified
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COMPUTERS
435
that the new estimating software is functioning to your satisfaction,
stop cross-checking your estimates manually.
Like your old computer or manual estimate sheet, the new elec-
tronic system requires continual price updates. You will also have to
continue to watch for items that are unique to a job that will influence
the cost of production; for example, limited access to a structure will
increase the dollar amount of a number of line items, such as materi-
als handling. Use Fig. 13-7 as a preliminary list of items that you will
need to watch over and change regularly. Pull the checklist up from
the CD and add your own line items. Keep it ready for each estimate
that is produced by your firm.
Figure 13-8 addresses the concepts that should be clearly under-
stood before you make your estimating software purchases, whether
upgrading or buying new. This checklist refers to basic products that
are very important when automating the bidding process. Review
them with care and add your own items in the empty rows.

Accounting—the Backbone of Management

An integrated, wrap-around financial software package can be pro-
grammed to take the appropriate information about percentage of com-
pletion punched in by the project manager and, from the original
estimate, generate an invoice. This should require only a few simple
keystrokes.
The software holds the billing information after the invoice is
presented; it remembers that you have invoiced the client. This
capability gives contractors the information they need to respond
quickly to delinquent accounts and assess late charges. Cash flow
can be significantly improved by keeping a tight rein on receivables.
The integrated software can produce aging reports that show the
accounts receivable balance, as a total, by customer or by overdue
period.
The word processing software in Windows or the wrap-around
roofing software can be set up to take the information from the
accounting modules and produce customized letters to all customers
who are 30 days (or any other amount of time selected by the com-
pany) or more past due on their payments.
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436 CHAPTER THIRTEEN

✓ Item Notes

Changes in materials vendors’

costs

Changes in labor costs

Seasonal changes to account

for temperature fluctuations

New roof or reroof job

Specific job conditions

F I G U R E 1 3 - 7 Checklist of items that must be updated in the estimating database.

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COMPUTERS
437
TAKEOFFS—FIELD

✓ Item Notes

Hand-held computers Comparisons with the unique

requirements of our firm have all
been made. Pricing from vendors has
been reviewed. Projections for pur-
chasing date have been completed
and reviewed.

Measuring devices Device comparisons with the unique

requirements of our firm have all
been made. Pricing from vendors has
been reviewed. Projections for pur-
chasing date have been completed
and reviewed.

Digitizers Device comparisons with the unique

requirements of our firm have all
been made. Pricing from vendors has
been reviewed. Projections for pur-
chasing date have been completed
and reviewed. Calibrations have been
field-tested.

Estimating software Comparisons with the unique

requirements of our firm have all
been made. Pricing from vendors has
been reviewed. Projections for pur-
chasing date have been completed
and reviewed. Estimator has
reviewed software. Price from consul-
tant has been finalized.

F I G U R E 1 3 - 8 Roofer’s computer checklist—takeoffs and estimates.

Scharff_Chap13_6x9-GOOD 9/22/00 3:47 PM Page 438

438 CHAPTER THIRTEEN

TAKEOFFS—OFFICE

✓ Item Notes

Computers Comparisons with the unique

requirements of our firm have all
been made. Pricing from vendors has
been reviewed. Projections for pur-
chasing date have been completed
and reviewed. Integration with soft-
ware package has been confirmed.

Estimating software Comparisons with the unique

requirements of our firm have all
been made. Pricing from vendors has
been reviewed. Projections for pur-
chasing date have been completed
and reviewed. Estimator has
reviewed software. Price from consul-
tant has been finalized. Integration
with digitizer confirmed.

Download devices Device comparisons with the unique

from field measures requirements of our firm have all
been made. Pricing from vendors has
been reviewed. Projections for pur-
chasing date have been completed
and reviewed.

F I G U R E 1 3 - 8 (Continued)
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COMPUTERS
439
Contractors who are willing to dig in, pay a consultant, evaluate
software, and devote some professional energy to making use of com-
puters can enhance the efficiency of their firm exponentially. For
example, your computers can track employee hours and rates of
hourly pay, then process payroll and cut paychecks. At the same time,
these programs can keep track of bank balances, loan payments, and
interest paid or earned. At tax time, reports can be generated that sum-
marize or detail by item all revenues and expenses, categorized by job,
by employee, by vendor, by loan number or name, or by any other cri-
terion. This makes income tax preparation easier and less costly.
External service bureaus are no longer needed.
As long as the proper figures are entered into the computer sys-
tem, any reports, analyses, bids, invoices, or other computer-gener-
ated documents will be accurate. However, always remember the
old saying among computer programmers: garbage in, garbage out
(GIGO for short). This is especially true in estimating, forecasting,
and leveling, where the information entered is often based on past
performance, which must be very carefully tracked in order to be
effective.
All in all, when it comes to very complex or long and tedious tasks,
computers calculate more accurately than human beings do. But you
must wade through the computer hype presented to you by vendors. A
computer is just like a roofing knife; it is a very handy tool that speeds
things up when it is very sharp. But when it is dull, it frustrates every-
one involved.

Taking Advantage of Vendor Discounts

Many accounts payable software programs enable a contractor to take
full advantage of available vendor discounts. Input each vendor’s due
dates and discount, and the computer automatically cuts checks to the
individual vendors within the discount time frame. The program cal-
culates the discount and deducts it from the payment. This makes it
possible for a project manager to be encouraged to work more and
more on profit centers while being professional and diligent in the
construction process.
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440 CHAPTER THIRTEEN

Shopping and Discounts

It should be noted that thorough, disciplined shopping is always a
very wise move, both before and after getting a job. Before the job, a
rapid quote from vendors with reliable prices should be used in order
to get the bid out in a timely manner. After the bid is accepted, further
shopping can take place in order to increase the margin of profit on the
project.
The estimating software needs to have prices updated on a timely
basis if your company’s bidding process is to stay highly competitive.
Vendors change prices for many reasons: A product line is discontin-
ued, the manufacturer drops or raises prices, the vendor runs a dis-
count to pick up gross sales. Naturally, the more vendors you are
receiving prices from, the more effectively you can buy. And, remem-
ber that you can shop for value engineering.
The Net also offers a couple of other specific advantages. For exam-
ple, you can shop anywhere in the country, or in the world for that
matter, for a product. If you need a unique red-colored slate from
China, the Net is where you will want to start searching. Or, if you just
want to search for better pricing on something as common as roofing
equipment, you are in a much better position for searching than you
were a few years back.

Management Software
For real-world management, the KISS (keep it simple, stupid) princi-
ple is always the best policy. At first glance, this expression might
seem to be cavalier or to make light of the idea of simplicity. But it is a
very straightforward way of making a point that is very important.
The more complex you make your business, the more employees
you will most probably need. This extra employee weight can be com-
pounded heavily when middle management is brought into the loop.
This is one of the major benefits of well-chosen, properly installed
software on which your staff is well trained.
Each job can be treated as a profit center managed by the project
manager, who is capable of using all of the company’s technology and
is in complete and continuous communication with the office, the
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COMPUTERS
441
design anchor’s office, and, when appropriate, the building owner.
Project managers, estimators, schedulers, and accounting all benefit
greatly from software. With the ability to handle shopping, change
orders, rescheduling, payroll, job walk records, and progress reports
by computer at the jobsite and simply transfer the information to the
company’s central computer system, a good many jobs can be managed
well before extra staff is required.

Reporting on Activities
Accurate reports are one of the many benefits a computer provides.
For example, accounts payable software can show, on a monthly basis,
which vendor discounts were taken and which were not. Reviewing
this report helps in fine-tuning the company’s financial picture.
During peak construction periods, it is not unusual for roofers to
fall behind on their paperwork responsibilities. The proper software
packages can simplify the paperwork so much that difficult chores like
extending columns of numbers do not even have to be thought about.
Even tasks as ungainly as taking measurements off of a set of plans
with an architect’s scale are performed automatically.
The important management functions of forecasting and leveling
become very straightforward when a company is using high-quality
software. Full-tasking job-cost accounting software makes it easy to
produce up-to-date reports on accounts payable and accounts receiv-
able, as well as complete financial statements at any time of the year.
These reports are imperative when you deal with financial institu-
tions. The computerized reports present information about the con-
tractor’s business in the language the banks speak. When detailed,
organized, complete financial information is part of the roofing con-
tractor’s loan presentation, it reflects well on the contractor’s profes-
sionalism.

Miscellaneous Software
Make certain to include everything you are interested in doing on your
wish list and discuss these wishes in detail with your computer con-
sultant. For example, a daily minder for all of the crews and the prin-
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442 CHAPTER THIRTEEN

cipal of the company is very important. Sound this—and all of the

tasks that are unique to your company—out with the consultant and
the software vendor. Require them to give you a demonstration of
these benefits.

Hardware
As was explained earlier, hardware should be chosen in relationship
to the software that the firm decides is best suited for its purposes. If
the company is so large and complex that a very high-end system is
required, then certain items covered in this chapter may change. For
example, if very high-end scheduling software is chosen, then Unix
workstations could be required and exotic hardware like a high-end
electrostatic plotter might be needed. However, the typical roofing
firm will probably do quite well with simple scheduling software,
which can use a small laser printer quite well. With a good consultant,
all of the hardware decisions should be fairly simple—consultants
typically know where to get good buys on hardware and on software as
well. As with the software, the initial purchase is not the major
expense when purchasing computers; it’s the keystrokes, which will
come after installation. If a person has to sit and wait for a computer
that does not handle the job well, the desired savings will not be
achieved, and losses from employee downtime and lowered morale
will continue to grow.