Increased Bid Accuracy, Accelerated Workflows and a Competitive Advantage with Model-based Estimating
"On average, we used to bid a project every 10 days. Now, we’re bidding three projects each week. Tekla PowerFab and model-based estimating have not only increased the accuracy of our estimates, it’s also accelerated our workflow, which allows us to bid more projects.”
— Adam Norman, Managing Partner, GMF Industries
In 1982, with a single welding machine, Larry Norman set out to find work fabricating steel. He visited an amusement park 100 miles away to bid on a project, only to have the legitimacy of his business questioned because he didn’t have a business card. Larry returned with a freshly minted business card and walked away with a contract worth $1,000,000. GMF Industries was born.
Since the mid to late 80’s, GMF has primarily been a large plate fabricator, but, when Larry Norman took a step back from the company in 1999, the company shifted its focus. Under the guidance of Adam Norman, they turned fabrication and engineering techniques into a full-service structural steel fabrication and erection operation. To accomplish this, Norman began looking for a way to accelerate the company’s estimating process by automating the time-consuming manual tasks that led to guesswork and human errors.
Tighter Bids for a Competitive Advantage
Accurately determining the amount of steel needed, how long each phase of the project will take and the cost per project are nearly impossible to accomplish without the right information on hand. In the past, creating a large volume of bids based on 2D drawings left a lot of uncertainties. While GMF’s team of experienced estimators have the skills to compensate for unknowns, such as missing section cuts, model-based estimating has eliminated the need for guesswork.
“In the past, we could compensate for unknowns by putting contingencies in the bid and in some cases, that caused us to lose the job,” said Norman."
Accurate Estimates in Less Time
When Norman heard about model-based estimating, it was still a new concept, but the potential to estimate projects quickly and accurately was intriguing. At the time, estimates were based on 2D drawings, so the workflow was both tedious and slow. Norman saw the opportunity to switch to model-based estimating software, specifically Tekla PowerFab—Trimble’s end-to-end solution for steel fabrication management—to streamline the process and use 3D models to create extremely accurate estimates, in less time.
Norman tasked GMF’s most experienced estimators with defining a new model-based estimating workflow using Tekla PowerFab. Today, estimators can quickly generate an IFC file that allows them to import a 3D model into Tekla PowerFab and use the model data to generate highly accurate material quantities, along with labor and cost data.
“On average, we used to bid a project every 10 days,” said Norman. “Now, we’re bidding three projects each week. Tekla PowerFab and model-based estimating have not only increased the accuracy of our estimates, it’s also accelerated our workflow, which allows us to bid more projects.”
Turning Around a Bid in Three Days and Winning
Shortly after GMF began implementing model-based estimating, they were approached to bid on fabricating and erecting 1,000 tons of steel. Because it was a non-profit project with thin margins, bid accuracy and project efficiency were critical for success. By using technology, they were able to generate the estimate without adding contingencies to cover any unknown costs or changes.
Even though GMF was given less than five days to turn around the bid, they were awarded the project and started ordering material the following Monday. Not only did model-based estimating software help turn out an accurate bid, it also helped GMF hit the ground running after the contract was awarded.
“We never would have been able to turn around a bid this quickly without Tekla PowerFab,” said Norman. “After we won the job, we took the IFC file out of estimating and ordered the material cut to size. We had less waste and were able to hit mill orders straight off the estimate with 100% certainty that we were ordering the right material—all thanks to our new model-based estimating process.”
Opportunities for Estimators to Advance
“Our chief estimator had never worked in a 3D environment. He picked it up in less than a day and actually started improving my estimating workflow.”
Using Tekla PowerFab has also expanded opportunities for less experienced estimators. “Estimating is one of the most important parts of our business,” said Norman. “Our estimators are very seasoned professionals who have fabricated steel in the shop and erected steel in the field, but with Tekla PowerFab automating takeoff and the ability to visualize what the final product will look like in 3D, we’re able to expand our team to younger estimators who are motivated to learn.”