Estimating the cost of property damage is a mandatory task for contractors, project managers, and insurance companies. Xactimate has emerged as a powerful and reliable construction estimating software. It is widely used all across the globe to calculate construction damage accurately and precisely. Whether you are dealing with fire, wind, hurricanes, floods, or other natural disasters, It provides an extensive solution for all kinds of property damage.
In this article, we will guide you about what Xactimate is, the key features of Xactimate, how to create an estimate in Xactimate, and the best practices for using it. Whether you are a beginner or an experienced user, you will be well-versed in using this software at the end of this article. Let’s dive into what is exactly it is.
What Is Xactimate?
Xactimate is a software developed by Xactware for the purpose of property damage estimation. It is used to create estimates after the damage amidst natural disasters like fires, floods, hurricanes, etc., so restoration and repair work can be done. All estimating companies uses this software to provide Xactimate Estimating Services. This software also includes the local area prices for materials, labor, and equipment. It is based on the regional building codes and regulations for calculating the project’s total cost.
Why Use Xactimate?
There are many advantages of using Xactimate. Some of them are listed as follows:
Accuracy
Xactimate software creates estimates with greater precision and accuracy. It considers all the factors and provides an exact cost estimate for the repair and restoration work. This helps construction contractors and insurance companies avoid overestimating or underestimating the forecast, thus preventing costly surprises and time delays.
Professionalism
An accurate and reliable estimate is the key to building trust among construction contractors, restoration professionals, project managers, and insurance and claim companies. Xactimate’s extensive features allow contractors and estimators to create detailed estimates that include all the material costs, labor costs, rental charges, and other expenses that can affect the overall cost of the project. These reports serve as official documents used by insurance companies and stakeholders to make timely and informed decisions regarding the feasibility of the project.
Standardization
Because of its extensive features, Xactimate has become a standard tool for all construction professionals to use in the field of property damage and restoration estimates. As a result, it has developed as a standard and consistent strategy to estimate accurate costs and improve communication between the various parties involved in the project, thus streamlining the entire construction project.
Efficiency
Xactimate allows users to save time and effort by automating much of the estimation process. With its comprehensive database and built-in cost prices, it serves as an excellent software for reducing the repetitive work of estimators. It automatically calculates the costs of all the factors accounted and that too, based on the local area prices of the project. This feature helps you save time and use it in other crucial tasks.
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How To Create An Estimate In Xactimate?
After we have learned what Xactimate is and its benefits in the construction and insurance field, let’s dive in how to create an estimate in Xactimate. Here is the step-by-step guide of creating an estimate in Xactimate:
Step 1: Set Up A New Project
To create an estimate in Xactimate, you must first create an account and log in to your account. Once logged into your account, you can start building your estimate by setting up a new project.
Open Xactimate: After logging in to your account and opening it, you can start building a new project by clicking “New” at the top left corner of the dashboard.
Enter Project Information: After you have clicked on the “New” at the top left of the dashboard, a window will pop up where you need to enter your project’s information such as:
- Project Name
- Customer or Claim Number (if applicable)
- Type of the Estimate (residential, commercial, or industrial)
- Your company and contact details
- Address of the property
Save the Project: After you have filled in the necessary information, click on “Save.” Now, you can start building your new construction project.
Step 2: Add A Sketch Of The Property
Creating an estimate in Xactimate often starts with adding a sketch of the property. The sketch helps you create a visual representation of the project that helps calculate materials and labor requirements. You can sketch the project by the following steps:
- Open the Sketch Tab: While creating a new project in Xactimate, you can start a new sketch by clicking on the “Sketch” tab. This will open a new, blank canvas.
- Draw The Structure: You can manually create a project sketch using the Tools on the right side. You can create doors, rooms, windows, and walls. After you have made these dimensions, the software will automatically calculate the dimensions.
- Use “Rooms” to add rooms.
- Use “Walls” to add walls.
- Use “Windows & Doors” to add openings.
- Enter Dimensions: You can enter the dimensions manually, or the software will automatically adjust them when you restructure the sketch.
Step 3: Enter Line Items For Repair Costs
Once you are done with your sketch, it’s time to enter line items for the repair and restoration costs. These line items include materials, individual tasks, labor, etc. The Xactimate database contains hundreds of line items, and you can search for them according to your project requirements.
- Open The Estimate Items Tab: When you have completed your estimate, click on the “Estimate Items” tab.
- Search For Line Items: You can use the keywords in the search bar to find your desired line items.
- Add Line Items For Estimate: Once you have your desired line items, you can add them to the estimate by clicking the “Add” option.
- Customize Line Items: You can customize the line items by the descriptions, quantities, and the amount you need for your project.
Step 4: Adjust Pricing and Overhead
One of the main advantages of using Xactimate is its built-in prices, which are based on regional rules and regulations and local area prices. However, you may need to adjust them according to the client’s requirements.
- Review Default Prices: Xactimate automatically applies the local prices to the line items in the estimate. You can manually adjust it further according to the budget.
- Apply Overhead and Profit: It is standard practice to add 10% profit and overhead to each estimate. This allows users to easily apply overhead and profit to their desired projects.
- Account In Tax: Although it applies the tax on the estimate according to the region and state, you can review it and adjust it manually if needed.
Step 5: Generate The Estimate Report
Once you have added all the materials, line items, and expenses, you can generate the estimate report.
- Go To The “Reports” Tab: You can initiate creating the report by clicking the “Reports” tab.
- Choose Report Type: Xactimate offers a variety of reports like summary reports, detailed reports etc. You can choose based on your project requirements.
- Customize the Report: To customize the report, you can add the company logo, client details, and other specifications.
- Generate The Report: After all these steps, click on the “Generate” tab to generate the report. The report is created in PDF form which can be forwarded to the clients.
Best Practices for Creating Accurate Estimates in Xactimate
While Xactimate simplifies the estimating process, following these best practices can help you further enhance your results:
Regularly Update Pricing
Although the Xactimate database is constantly updated, it is useful to keep information on the current market conditions and local prices in the area where the project is located. This helps construction and restoration professionals carefully review the cost estimate and ensure that it is perfectly aligned with the project’s budget.
Keep Learning
Xactimate is powerful and extensive software with various built-in options. Mastering the art of creating estimates requires consistent training, new skills and courses, and regular practice.
Double-Check Sketch Dimensions
Even minor mistakes in the cost estimate can cause huge discrepancies, leading to conflict among contractors and stakeholders. Therefore, you should always check the dimensions before the final estimate.
Stay Organized
Stay organized by creating folders for different clients. This will make it easier for everyone to access information regarding the construction project.
Conclusion
Creating an estimate in Xactimate is not a challenging task if you have a profound knowledge of all the tools and options involved and the best practices for using this software. At Total Scope Estimating, we have a team of estimators who are well-versed and well-trained to use Xactimate to the best of it. Contact us today to get the best estimates through Xactimate.
