What are the best sources and methods for collecting and storing historical data?

1 Internal data

The first and most obvious source of historical data is your own company's records. You should have access to the bids, contracts, invoices, change orders, schedules, and performance reports of your previous projects. These documents can provide you with valuable information on the costs, durations, productivity, quality, and profitability of your past work. However, to make the most of your internal data, you need to have a consistent and standardized system for collecting, storing, and retrieving it. You can use software tools, such as construction estimating software or project management software, to create a centralized database that allows you to easily search, filter, and analyze your data. You should also update your data regularly and ensure its accuracy and completeness.

2 External data

Another source of historical data is external data from industry associations, government agencies, publications, and other sources. These data can provide you with benchmarks, trends, statistics, and insights on the construction market, such as labor rates, material prices, demand and supply, regulations, and best practices. You can use external data to complement and validate your internal data, as well as to gain a broader perspective on the factors that affect your projects. However, you need to be careful when using external data, as they may not reflect your specific location, scope, quality, and complexity. You should always verify the source, date, and relevance of the external data before using it.

3 Historical data management

Collecting historical data is only half of the equation. You also need to manage your historical data effectively, so that you can use it for future estimates. This means that you need to organize, store, back up, and secure your data in a way that preserves its integrity and accessibility. You can use cloud-based platforms, such as Google Drive or Dropbox, to store your data online and access it from anywhere. You can also use encryption, passwords, and permissions to protect your data from unauthorized access or loss. You should also review and update your data periodically, and delete or archive any outdated or irrelevant data.

4 Historical data analysis

The final step is to analyze your historical data and use it to improve your estimates. You can use various methods and techniques to extract meaningful information from your data, such as descriptive statistics, trend analysis, regression analysis, and variance analysis. These methods can help you identify patterns, relationships, anomalies, and deviations in your data, and use them to adjust your estimates accordingly. You can also use historical data to create and refine your estimating models, formulas, and assumptions, and to compare your estimates with actual results.

5 Historical data benefits

Using historical data for construction estimating can bring you many benefits, such as increased accuracy and reliability of your estimates, reduced risks and uncertainties in your projects, enhanced confidence and credibility with your clients and stakeholders, improved performance and profitability of your company, as well as continuous learning and improvement of your estimating skills.

6 Historical data challenges

However, using historical data for construction estimating also comes with some challenges. Finding relevant and reliable sources of data can be difficult, and the data must be maintained and updated regularly to ensure compatibility and comparability. Additionally, applying the appropriate methods and techniques for data analysis is essential, as well as avoiding bias and errors in your data interpretation.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?