Many design firms use their AVA software primarily to create Bill of Quantities. Cost calculations are mainly handled in parallel in Excel at the chart of accounts and cost planning stages; bids are compared in separate files; and change orders or invoices are documented elsewhere. This results in disparate data sets, repetitive data entry, and unnecessary media breaks. When changes are made—if not before—it becomes difficult to keep all cost information consistent.
Yet an AVA program is capable of much more. When used correctly, it supports a construction project from the early stages of cost determination (cost framework, cost estimation, cost calculation) through the bidding and awarding phases to invoice verification and final cost determination. The key is not to use as many functions as possible. Far more important is a seamless process in which the individual steps are based on a common database.
This article shows what such a workflow might look like in practice and what to keep in mind when implementing it and using it on a daily basis.
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What role does an AVA program play in a construction project?
AVA stands for tendering, awarding, and billing. The term describes three key areas of responsibility within the planning and execution of a construction project. Modern AVA software, however, begins earlier in the process and also supports cost estimation, cost planning, and ongoing cost control.
A comprehensively implemented AVA program integrates, among other things:
- Early identification and breakdown of project costs
- the preparation of Bill of Quantities
- the preparation and execution of requests for proposals
- a comparison of detailed bids
- Documentation of Awards and Contracts
- Supplement Management
- Recording of Services Rendered
- the review of interim invoices and final invoices
- ongoing cost control and cost determination
- Active construction cost management, including forecasts and risk analyses
This creates a clear link between the planned budget, the services put out to bid, the services contracted, and the actual costs billed.
1. Set up the project foundation and cost structure properly
A reliable construction cost workflow does not begin with the Bill of Quantities, but with the project structure. Right from the start, it is necessary to determine how costs will be broken down, responsibilities assigned, and the various project phases documented.
A cost structure based on DIN 276 provides a uniform and widely recognized foundation for this. Service areas and contract units are essential for soliciting bids and awarding contracts. Furthermore, service areas are much easier for many project owners to understand than the classification system outlined in DIN 276. Good AVA software can handle multiple cost structures—such as DIN 276, service areas, or custom cost structures—simultaneously, so that cost trends throughout the project can be presented in a way that is understandable and transparent to different target groups.
Key project foundations include:
- the cost structure used, or cost structures used in parallel, such as DIN 276 and service areas/contracting units
- the allocated budget
- the required level of detail
- Project Variables and Reference Values
- Responsibilities within the Planning Team
- Access Rights for Internal and External Stakeholders
- Rules for Versions and Releases
Especially on larger projects, multiple people often work on cost estimates, Bill of Quantities, or contract packages. Clear user permissions prevent information from being accidentally altered and ensure that responsibilities are clearly defined.
NOVA AVA offers flexible rights management. Permissions can be defined in user roles and applied at the project level and to subordinate content such as cost estimates, Bills of Quantities, or BIM models.
2. Establish a consistent approach to cost estimation and cost planning
As planning progresses, cost information becomes more accurate. DIN 276 distinguishes between various stages of cost determination. These include, among others, cost frameworks, cost estimates, cost calculations, cost proposals, cost quotations, and cost determinations.
In practice, this means that an initial estimate should not be saved as a standalone file and then completely rebuilt later. It makes more sense to refine the existing cost structure step by step.
From the Initial Estimate to the Cost Calculation
In the early stages of a project, area measurements, quantity estimates, or data from comparable projects are often available. These can be used to develop an initial cost estimate.
As planning progresses, these values can be replaced with more specific quantities, components, scope of work, and unit prices. In this way, a rough cost estimate evolves into a more detailed cost calculation.
An AVA program supports this process by allowing different cost stages to be tracked in a structured manner and compared with one another. This makes it clear where costs have changed and which planning decisions are responsible for those changes.
Use benchmark data and comparable projects
Comparative projects are particularly helpful when reliable empirical data is available from construction projects that have already been planned or completed. A prerequisite is that the projects are meaningfully comparable in terms of building type, standard, size, region, and construction period.
Historical figures should not be adopted without scrutiny. Price trends and differing market conditions must be taken into account.
NOVA AVA allows you to use reference projects and construction price indices in cost planning. This enables you to use existing project data as a basis and, by applying price indices, adjust it to reflect current cost levels.
BIM and IFC as an optional basis
If an IFC model is available, model-based quantities can be included in the cost estimation. However, the model does not replace a professional review. Components must be correctly classified, quantity rules must be defined in a transparent manner, and work item rates must be assigned appropriately.
With the BIM add-on from NOVA AVA, IFC models can be used as the basis for quantity and cost planning. Selected components and model information can be linked to cost elements or line items using filters.
3. Incorporate planning results into the Bill of Quantities
The Bill of Quantities describes the services to be offered as part of a request for proposals and subsequently contracted. It contains line items with service descriptions, quantities, units, and, where applicable, estimated prices.
A Bill of Quantities must be complete, unambiguous, and logically structured. This includes not only the actual item descriptions, but also preliminary remarks, conditions of execution, and project-specific requirements.
Depending on the request for proposals, additional items, alternative items, or bonus items may also be required. These must be used deliberately and clearly identified so that bids remain comparable later on.
Do not transmit data more than once
A common mistake is to first calculate quantities and costs in a spreadsheet and then manually transfer them to the Bill of Quantities. If the plan changes, the information must be updated in multiple places.
A streamlined workflow reduces this duplicate data entry. Cost items, quantity estimates, and service areas can be derived from the existing project structure. This ensures that the process by which cost planning is translated into the request for proposals remains transparent.
NOVA AVA supports the creation and editing of Bill of Quantities, as well as the import and export of various file formats. Bill of Quantities can be exported as GAEB files, Excel files, or PDFs, among other formats. Existing content and templates can also be reused.
GAEB for Structured Data Exchange
GAEB formats enable the standardized exchange of construction information between designers, clients, and contractors. Depending on the specific phase of the exchange, Bill of Quantities, bid data, contracts, or billing information can be transmitted.
Structured data exchange is particularly helpful when positions, quantities, and prices are to be processed digitally. Nevertheless, every imported file should be checked. A technical import is no substitute for a business-side review.
4. Prepare the request for proposals and solicit bids
Once the Bill of Quantities has been finalized and reviewed, the bidding phase begins. A distinction can be made between a traditional and a digital approach.
In a traditional bidding process, documents—such as GAEB files, Excel files, or PDFs—are made available and sent to bidders separately. In a digital bidding process, bids are submitted through a central platform.
Regardless of the procedure chosen, all bidders must receive the same information and updates on the status of the process. Changes to the Bill of Quantities should be documented and clearly communicated.
NOVA AVA supports both traditional and digital tenders. Using the tendering function, participants can be invited, documents can be made available, and bids can be solicited in a structured manner. Invited companies can create, review, and submit their bids on the integrated bidding platform without any barriers.
5. Review offers and compare them in the price comparison chart
Once the bids are received, they must first be reviewed for compliance with formal requirements and for accuracy of calculations. Missing prices, changed quantities, incomplete line items, or discrepancies in the information provided can affect comparability.
A price comparison table compares quotes item by item. This highlights differences in unit prices and total prices. Prices that are particularly high or low can be identified more quickly and examined in detail.
A thorough evaluation of bids includes, among other things:
- Check for Completeness
- Verification of Unit Prices and Total Prices
- Accounting for Discounts and Cash Discounts
- Checking for Missing or Changed Items
- Comparison of Requirement Items and Alternatives
- Assessment of Notable Price Deviations
- Documentation of the evaluated bid options
The lowest total price is not necessarily the most cost-effective bid. Factors such as completeness, quality of workmanship, contract terms, and project-specific requirements may also be relevant to the evaluation.
With NOVA AVA, bids can be compared in a price comparison table. NOVA AVA automatically generates the price comparison table itself based on the submitted bids. In addition, variants can be calculated to compare, for example, different items or design alternatives.
6. Document the award and cost estimate
After the bids have been evaluated, a decision is made regarding which services are to be awarded to which company. In this process, the services, contract amounts, discounts, contract terms, and—where applicable—excluded alternatives must be clearly documented in the award proposal.
An AVA program can transfer the results of the bid evaluation directly into the contract management system. This maintains the link between the Bill of Quantities, the bid, and the contract.
At the same time, the award of the contract serves as an important basis for the cost estimate. The previously planned cost frameworks (cost estimates, cost calculations) are now compared with the actual award results. Discrepancies between the cost calculation and the contract amount should not only be presented as a difference but also evaluated from a technical perspective.
Important questions include:
- Which contracting units are over budget?
- Where were better results achieved?
- Which services have not yet been awarded?
- What risks or reserves remain?
- How is the current cost forecast changing?
NOVA AVA integrates bid comparison, contract award, and contract management within the project workflow. This allows contracted services to proceed based on the previously reviewed bid data.
7. Consistently incorporate cost overruns into cost control
In many construction projects, changes during execution cannot be completely avoided. What matters most is how change orders are recorded, reviewed, and factored into cost projections.
If addenda are documented only in separate lists or email threads, the connection to the original order can easily be lost. It then becomes difficult to make a reliable cost estimate.
A structured addendum management process should include at least the following information:
- Relation to the original assignment
- Description and Rationale for the Change
- Affected items and quantities
- Quoted and Verified Prices
- Current audit status
- Approval or Rejection
- Impact on the contract value and cost forecast
For cost control, it is not enough to consider only supplements that have already been approved. Reported or expected cost changes may also be relevant to the forecast. It must remain clear what the status of each amount is.
With NOVA AVA, change orders can be entered and processed within the order structure. Combined with cost analysis, this allows you to compare planned, ordered, forecasted, and billed costs.
8. Combine quantity surveying, invoice verification, and billing
Before invoicing, it is necessary to document which services were actually performed. This is done through quantity surveys and service reports. The recorded quantities then serve as an essential basis for reviewing interim invoices and final invoices.
A measurement should be clearly assigned to a specific item and be mathematically traceable. In the case of cumulative invoices, it must also be clear which quantities have already been included in previous invoices.
Review Invoices for Installment Payments
When reviewing an interim invoice, the following points, among others, are considered:
- Do the billed items match the order?
- Are the quantities supported by measurements?
- Have quantities that have already been billed been correctly accounted for?
- Do they include any agreed-upon discounts and contract terms?
- Have any supplementary budgets been approved?
- Are there any withholdings or deductions to consider?
- Is the cumulative statement correct?
An AVA program supports this review by linking order lines, approved change orders, work quantities, and previous invoices.
Final Invoice and Cost Determination
The final invoice is used to settle the services rendered. At this point, any prior progress payments, additional invoices, withholdings, and—if applicable—any outstanding services must be taken into account.
The verified billing data is then incorporated into the cost determination. This documents the actual project costs incurred and enables a final comparison with previous cost figures.
NOVA AVA offers features for performance tracking, quantity takeoff, target-actual comparisons, invoice verification, and billing. This allows information to be tracked from the order and execution phases all the way through to the final cost analysis.
Common Mistakes When Using an AVA Program
Even powerful software does not automatically lead to effective construction cost management. Clear processes and consistent data maintenance are crucial.
The program is used only for Bill of Quantities
If cost planning, contract awarding, and billing are handled outside the software, only a small portion of the potential workflow is utilized. The connections between the planned budget, the contract, and actual costs are lost.
Cost planning will continue to be done in Excel
Excel can be useful for individual calculations. Problems arise, however, when it becomes a parallel source of truth. Changes then have to be transferred and synchronized multiple times.
Quantities and line items are entered manually
Every manual transfer increases the amount of work required for verification. There is also a risk that changes will be made to only one of the files used.
Cost figures are not updated regularly
Cost control is only meaningful if new contracts, contract amendments, forecasts, and invoices are taken into account in a timely manner.
Addenda are documented separately
Without a link to the original order, it is difficult to assess their actual impact on costs and billing.
Responsibilities have not been clarified
If multiple people are allowed to edit data but there are no clear responsibilities, discrepancies in the work status can quickly arise.
Templates are adopted without review
Templates and previous Bill of Quantities save time. However, they must be adapted to the current project, the stage of planning, and the specific requirements.
Checklist for a Seamless AVA Workflow
The following points can be used to determine whether the AVA program is already being used consistently:
- Projects are based on standardized cost structures.
- Budgets and cost categories are established early on.
- Cost estimates are refined to reflect later cost levels.
- Comparison projects and key metrics are maintained in a transparent manner.
- Quantities are recorded only once, whenever possible.
- Bills of quantities are prepared based on the current plans.
- GAEB files are technically reviewed after import and export.
- Bids are reviewed for compliance with formal requirements and for accuracy of calculations.
- Contract awards are directly linked to the bid data.
- Addenda remain associated with the respective order.
- Measurements and services are documented by item.
- Installment invoices are reviewed cumulatively.
- Forecasts and cost estimates are updated regularly.
- Access rights and responsibilities are clearly defined.
- Employees work according to common standards.
Not every company needs to implement all features at once. It often makes more sense to first establish a clearly defined core process and then expand it step by step.
Frequently Asked Questions About the AVA Program
What is the difference between an AVA program and basic bidding software?
Software designed solely for the bidding process often focuses on Bill of Quantities and request for proposals. A comprehensive AVA program also integrates cost planning, contract award, contract management, contract amendments, quantity takeoff, and billing.
Can an AVA program completely replace Excel?
Not every single calculation necessarily has to be performed in AVA software. However, for key project costs, it makes sense to have a centralized and traceable data source. Separate Excel files should not be allowed to become an uncontrolled parallel system to the main system.
In which HOAI service phase is an AVA program used?
Its use can begin as early as the initial cost estimation phase and extend across several HOAI service phases. AVA software is particularly relevant for cost planning, preparation for and participation in the awarding of contracts, as well as for project supervision, invoice verification, and cost determination.
What role does GAEB play in an AVA program?
GAEB enables the standardized exchange of Bill of Quantities, bid data, contracts, and other construction information. This allows data to be shared in a structured manner among clients, designers, and contractors.
Is an AVA program worth it even for small design firms?
Even small offices benefit from standardized templates, transparent cost tracking, and fewer manual data entries. It is crucial that the scope of features and workflow align with the actual project volume.
Conclusion: An AVA program provides the greatest benefit throughout the entire process
An AVA program is much more than just a tool for creating Bill of Quantities. Its greatest value is realized when cost planning, bidding, bid evaluation, contract award, change orders, and billing are all integrated into a single process.
A shared database makes changes more traceable and reduces unnecessary duplicate data entry. However, a clearly defined process remains essential. Cost structures, responsibilities, and audit procedures must be planned just as carefully as the technical implementation.
Those who integrate the AVA program step by step into their entire construction cost workflow gain a solid foundation for cost control and project decision-making. This allows for a systematic comparison of planned, contracted, and actual costs throughout the course of the project.
Process construction costs consistently using NOVA AVA
NOVA AVA combines cost planning, Bill of Quantities, bidding, contract award, change order management, and billing in a cloud-based application. Projects can be managed via a web browser without the need for a traditional on-premises installation.
This creates a seamless workflow from the initial cost estimate to the final invoice.
Try NOVA AVA for 14 days for free and with no obligation, and map out the entire construction cost process in a shared application.