A construction estimator plays one of the most critical roles in the construction process. They crunch the numbers to determine the financial viability of construction projects. Their work is vital in creating accurate project budgets, bids, and quotes.
Construction estimators are the unsung heroes of the construction industry. They often go unnoticed because they work behind the scenes. Cost estimation typically occurs during the preconstruction phase. So you’ll rarely see a cost estimator in action on-site.
If you’re looking for an in-the-office position in construction, this might just be the job for you. You can easily build a stable career out of it, too.
The question is, do you have what it takes to become a construction estimator?
You very well might!
Let’s dive deeper into the construction estimator profession. This article explains the following:
- What a construction estimator does
- The different types of construction estimators
- How much construction estimators earn
- How to become a professional construction estimator
What Is a Construction Estimator?
A cost estimator is the person who calculates how much a construction project will cost.
Construction projects have a myriad of costing factors. These include labor, materials, administration, logistics, overheads, permits, and insurance. The estimator combines all these factors to propose a budget.
Doing that requires sharp math skills, analytical thinking, attention to detail, and a deep understanding of construction processes. The estimator also collaborates closely with other professionals, including quantity surveyors, architects, and project managers.
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What Does a Construction Estimator Do?
In a nutshell, a construction estimator calculates the cost of potential projects. But there’s a lot more to it than that.
Here’s a detailed breakdown of a construction estimator’s job description:
Scope Out Construction Projects
The construction estimator first analyzes a project before determining its cost. They review the proposal, plans, and blueprints to get a clear picture of the scope of work. The goal is to figure out the project’s specifications and requirements.
In short, the estimator identifies two key things. One: what needs to be done. Two: everything required to complete the job (labor, materials, equipment, time, etc.).
Estimate Costs
This is what construction estimators are best known for. They calculate the total cost of a project based on known cost factors. To get an accurate figure, the estimator must do the following:
- Calculate the types, quantities, and prices of the materials needed for a project. This is known as material takeoff.
- Estimate the labor hours required in order to work out the total wages.
- Calculate the cost of equipment and machinery needed for the project. They may consider the costs associated with renting, fueling, maintaining, transporting, and operating construction machinery.
- Sum up quotes from different subcontractors for specialized work, such as electrical and plumbing.
- Identify other project-related costs such as permits, taxes, bonding, and insurance.
Prepare Bids
The estimator gathers enough costing data to prepare bids for construction jobs. However, bidding is a complex numbers game that’s more than just about cost.
Firstly, a good bid must show a clear understanding of the project’s scope and requirements. And most importantly, the final price must be both competitive and profitable.
Preparing a bid is a balancing act between affordability and earnings. If the bid is too high, you might lose the job. Bid too low, and the job eats into your profits. Finding that sweet spot every time can make all the difference between success and failure for a construction company.
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Analyze and Review Bids
A construction estimator goes through every bid before it is submitted. For starters, they verify that the numbers add up. They also look for any potential risks or contingencies associated with the bid.
Construction estimators analyze incoming bids from subcontractors, too. Again, they check the offer’s math and feasibility.
Negotiate With Suppliers and Subcontractors
It’s the construction estimator’s job to find the best deals possible for materials and supplies. This means shopping around and negotiating with suppliers.
Negotiating for lower prices is in the company’s best interests. Materials usually make up the bulk of a construction project’s budget. Making savings here, in any way possible, can significantly lower the overall bid.
This part of the job also involves monitoring and predicting material costs. That’s because material prices are highly erratic. For instance, statistics show that the price of 80% of construction materials has increased by an average of 19% since 2020.
The estimator must stay informed about material pricing to determine the optimal time and place to make a purchase. Also, material price fluctuations are a risk factor in construction. So the more you know, the better.
Evaluate Lost Bids
You can’t win them all. Contractors know this all too well. But they don’t mope around over lost bids. What they do instead is a post-bid huddle to figure out what went wrong.
The construction estimator is crucial in the post-bid review process. They can help identify why their company was not chosen for a job. And, crucially, the estimator provides pointers for improving bidding strategies in the future.
Types of Construction Estimators
You can work as a dedicated estimator for one construction company. Or you can be a freelance construction estimator working on a contractual basis. You can even work for a third-party project management firm that serves clients, contractors, and engineers.
There are plenty of employment options. And you can work up the ranks as well—from junior estimator all the way to senior levels like estimating manager.
Also, construction estimation is a pretty broad profession. You can specialize in any of these five areas:
- Preliminary estimator: A preliminary or conceptual estimator gives a rough figure of a project’s cost. Conceptual estimates are made early in the project before detailed designs and requirements information become available.
- Quantity takeoff estimator: Your job will mostly involve calculating material quantities and costs. It’s similar to being a quantity surveyor but with a financial aspect.
- Bid estimator: A bid estimator prepares bids for construction companies. Remember, a bid encompasses the total cost, profit margins, and risks.
- Detailed estimator: A detailed estimate is a comprehensive evaluation of a project’s costs. You’ll be summing up all costing factors and figures to arrive at a final estimate.
- Control estimator: As a control estimator, you’ll be tracking costs in ongoing projects. Your job will be to ensure that every project stays on budget while making regular updates to reflect changes in costs.
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Construction Estimators: 7 Skills You Will Need
The role of a construction estimator is pretty demanding. You’ll need the following set of skills and qualities to play the part:
Math Skills
Math is a fundamental skill in cost estimating. The job involves a lot of complex calculations, so you must be good at math. If you love working with numbers, this might be the job for you.
Analytical Skills
It takes a structured, analytical approach to estimate construction costs. You must be able to interpret complex construction information, break large projects down to their constituent parts, and draw meaningful fiscal conclusions. All that requires analytical thinking.
Efficient Time Management
In construction, time is money (literally). Every minute wasted on a construction site translates to monetary losses. And you don’t want time overruns in construction projects.
So you must be time-conscious in everything you do. In other words, manage the available time as the valuable resource it is, especially when juggling multiple projects.
Negotiation Skills
Are you good at negotiating?
Construction estimators often have to negotiate prices with suppliers and subcontractors. Strong negotiation skills can help you lower project costs without sacrificing quality or profits.
Keen Attention to Details
A good construction estimator pays close attention to detail. Missing a requirement or something on a blueprint can be an expensive blunder. There’s no room for careless errors like misinterpreting a drawing or mistaking a decimal point for a comma.
Problem-Solving Skills
You must be flexible in the way you solve problems. That’s because no two construction projects are ever exactly alike. Similarly, cost estimation processes can vary widely from project to project.
Construction estimation calls for creative problem-solving skills. You must decide which techniques or solutions work best for specific problems.
Technical Skills
Construction estimation is a hands-on profession. You must be well-versed in the industry’s lingo, processes, and dynamics. For instance, you must be able to read blueprints, interpret technical drawings, run construction estimating software, and quantify the various aspects of construction work.
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Construction Estimator Average Salary
How much does a construction estimator earn?
Well, cost estimating is quite a rewarding gig. According to ZipRecruiter, the average construction estimator salary is around $83,000 per year. That works out to $40 an hour. In some cities, such as Nome, Alaska, construction estimators earn nearly $50 an hour.
Meanwhile, those in senior positions can make well over $300,000 a year.
How to Become a Construction Estimator: Step-by-Step
Sold on building a career in cost estimation? Here’s a three-step guide to becoming a construction estimator:
1. Earn a bachelor’s degree
There’s no specific degree program for construction estimation. However, you can obtain a bachelor’s degree in a related field, such as civil engineering, quantity surveying, or construction management.
In addition to a relevant bachelor’s degree, you can enroll in short courses related to business, finance, economics, and project management. These will earn you favor with employers.
2. Gather job experience
Armed with your education credentials, get an entry-level job in construction estimation. Don’t get your hopes too high, though. A college degree will only get you an internship or a junior-level position. But that’s alright—the goal here is to build your work experience.
Most contractors prefer highly experienced estimators. Besides, you can’t obtain the relevant certifications without hands-on job experience.
3. Get certified
Once you’ve amassed a couple of years of work experience, you may apply for construction estimator certification. Get various certifications from renowned organizations such as:
- American Society of Professional Estimators (ASPE)
- Niche Specialist Staffing Partners (SSP)
- Association for the Advancement of Cost Engineering (AACE)
- International Cost Estimating and Analysis Association (ICEAA)
You must meet specific requirements to become a certified construction estimator. Those requirements may include taking a course, passing an exam, and showing proof of work experience.
Getting certified will enable you to secure well-paying permanent employment. And that puts you on track to climbing the estimator career ladder.
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Pro Tips for Becoming a Construction Estimator
Anyone can become a professional construction estimator. This is all you need to do:
- Check whether you have what it takes to become a construction estimator (skills, temperament, and a passion for the job). You can even talk to someone in the field to find out what the job is like.
- Once you’ve made up your mind, get a bachelor’s degree in a related field.
- Get an entry-level job to gather work experience.
- Obtain as many relevant certifications as possible.
- Find jobs that challenge or encourage you to grow professionally.
- Embrace modern technologies, such as CAD (computer-aided design) software, BIM (building information modeling) tools, and estimation software like Joist, to make the job easier.
- Continue learning to sharpen and expand your skill set.