Don’t Underestimate the Estimator: Key Responsibilities of Construction Estimators

In construction, the estimator's role is fundamental to project success. These professionals possess an expansive knowledge of building materials, understand the requirements for various construction projects, engage with up-to-date building methodologies and track the fluctuations of market prices as well as regulatory standards.

These mission-critical individuals drive a huge portion of the preconstruction process. Without them, construction firms would be hard-pressed to turn a profit or win new business.

This article will focus on the role of a construction estimator, what they do and the many challenges they face. 

What a Construction Estimator Does

To win work, contractors have to submit bids. That requires them to walk a fine line between how much a project will cost and how much they will spend. Project owners don’t want to spend more money than is necessary, so a lower bid can attract them. That said, if the contractor underestimates the project’s costs, it shrinks the company’s profit margin. 

In other words, construction firms want their bids to be as accurate as possible to help them win business, then turn a good profit on that job. So, to build in that level of accuracy, they turn to a construction estimator. 

It’s a fairly common misconception that a construction estimator is primarily a number-cruncher. While that’s certainly part of their role, these individuals play a significant part in a firm’s business development. Without them, firms wouldn’t be able to create accurate, competitive bids. Without being competitive, they would struggle to win business. And without the accuracy, they could overpromise and underdeliver, tarnishing the company’s reputation — hurting their ability to land future jobs. 

Because estimating is this person’s core area of focus, they pull together a range of skills and assets that help drive precise bidding. Those include:

• Knowledge about direct costs, like materials
• Insight into indirect costs, like overhead
• Relationships with vendors and trade partners, connecting them to more accurate pricing
• The ability to analyze drawings and specifications
• Contingency planning

Anyone curious about how to become a construction estimator needs capabilities in a range of areas, from cost analysis to relationship building. 

Types of Estimators

Some estimators take on any project that their firm wants to bid on. What they have to estimate depends on the company for which they work. A construction estimator working for a general contractor (GC) will have a much wider range of job costing to tackle than an estimator working for a subcontractor who only pours concrete, for example. 

In large construction firms, estimators might have their field of focus narrowed to a specific specialty. For instance, some may have a dedicated mechanical estimator, electrical estimator, plumbing estimator and structural estimator, for example. 

In rarer cases, an owner might hire an estimator (or a general contractor for their estimating services) before a project gets underway. In this instance, the owner uses the construction estimator to get a feel for the feasibility of the project. The job costing information they receive gives them a baseline to compare bids against, too. 

A Day in the Life of a Construction Estimator

The daily activities of a cost estimator vary depending on the projects in which they’re currently involved and the status of those projects. While estimating concentrates on the front end of a project (i.e., the preconstruction phase), the work required in this role doesn’t necessarily stop at groundbreak. 

To provide a clearer idea of what a construction estimator may do on any given workday, it’s helpful to look at the phases of a project.

Pre-bid

Before a bid ever hits an estimator’s desk, they have plenty of work to do. They might scour the web, looking at builder’s exchanges and tracking indexes to keep a finger on the pulse of material pricing and how it’s likely to move. Someone interested in learning how to become a construction estimator might benefit from spending some time online learning how to monitor material costs. 

But an estimator’s pre-bid work isn’t just about data tracking. They often also engage with trade partners to keep those relationships warm so it’s easy to get information quickly when they need it. 

Ultimately, the construction estimator has continual work to do to be poised to accurately cost a job when the need arises. 

During the Bidding Process

Once a contractor gets invited to bid a project, the workload for a construction estimator grows. They spend time reviewing the drawings and specifications in detail, and they often visit the site, as well. Their goal is to gather all of the details they need to estimate the costs of the project as accurately as possible. 

Then, they return to their desk and create the estimate. That often means breaking down the scope of work by each trade and diving into the granular details to get as much clarity as possible into potential expenses. 

The construction estimator gets tasked with creating the material takeoff, which quantifies the materials required for the project. Combining that with their own pricing knowledge is what enables them to estimate the cost of the project. 

Not every cost on a construction project is tangible. Estimators need to take the following into consideration, too:

• Insurance
• Bonding 
• Permits
• The cost of temporary offices on the jobsite
• Equipment depreciation, maintenance, insurance, etc. 
• Software used on the project

On top of that, estimators need to protect their company’s profit margins by accounting for the wide range of costs that come with running a construction firm. The profit the company makes needs to cover not just employee wages and salaries, but also benefits like insurance, vacation days, and retirement contributions. It also needs to keep the lights on at the office, and cover the cost of leasing that office, too. 

Clearly, when estimating a project, estimators have a lot to take into consideration. 

As the deadline for the bid approaches, intensity might tick up even further. It’s not uncommon for estimators to receive a call at the eleventh hour giving them the final details they need from trade partners. 

Post-bid

Once a bid has been submitted, the estimator’s role shifts depending on whether or not their firm got the job. Either way, the individual continues to do work to earn that construction estimator salary we mentioned earlier. 

If they didn’t win the bid, the company often holds a post-bid huddle to evaluate why they weren’t chosen for the project — and how they can course-correct to improve their likelihood of winning future business. 

If the firm does win the bid, the estimator hands the project over to other stakeholders who will manage the project in the field. They may continue to be involved, though. If the owner submits a major change request, for example, the estimator may get looped back in to plan for that adjustment, helping the firm determine how much to charge for the work. 

The Challenges of Estimating

While construction estimating can be a fulfilling career path, it’s not without its difficulties. Those include:

• Timing

  Construction estimating is a deadline-driven field. The time between when a firm is invited to bid on a project and when that bid is due often isn’t long. Estimators have to be ready to act quickly — and to sacrifice as little accuracy as possible in doing so.

• Difficulty Getting Information

  In many cases, a construction estimator has to rely on someone else to get the information they need. For example, they may have to wait to hear back for an RFI from a trade partner on their current labor rates and availability.

• The Balancing Act

  Overestimating a project’s costs could mean losing a bid because the owner chooses a more affordable option, while underestimating eats into the company’s profit margin. Estimators have to walk the fine line there, making precision a key asset in their work.

• Blended Skills Requirement

  Estimators need to be strong at math and analytics, but they also need to be able to maintain relationships with internal collaborators and external trade partners who provide pricing information. Communication skills are often overlooked, but they make up some of a great estimator’s strongest attributes. They also need to have some level of accounting expertise paired with a solid grasp of the construction process.

• Pressures of the Job

  Many construction estimators feel responsible for their company’s success. To a large extent, their firm’s ability to win new work hinges on their ability to do their job well. And if their estimate ends up being too low, they often feel responsible for cost overruns.

Career Outlook for Construction Estimators

The work required to fulfill an estimator’s job responsibilities is extensive, but the average $85,000 construction estimator salary can compensate for a large amount of responsibility. As a result, many people interested in construction, accounting, or simply a stable career path wonder how to become a construction estimator. 

Successful estimators combine an analytical mind comfortable with numbers with an interest in the construction industry. They should enjoy running calculations as much as they enjoy walking the jobsite. 

To get a better feel for this role, turn to two of its leading organizations: the American Society of Professional Estimators (ASPE) and the Professional Construction Estimators Association (PCEA) of America. Both offer certifications that help estimators bolster their knowledge base and analytical expertise. Exploring certifications can provide insight into what this role requires. 

Additionally, anyone who wants to figure out how to become a construction estimator should shadow an estimator for a day. Getting familiar with their responsibilities gives you a much better feel for this job — and all of the work that’s required to earn a construction estimator salary. 

Individuals looking to combine their strengths of finance and construction often find construction estimating very rewarding. This role allows them to be involved in the front end of projects, helping companies win work and, in doing so, driving the firm’s success. 

Plus, estimators have opportunities to expand their career path. A good estimator could build the skills they need to thrive in a project executive role, for example. 

How Technology Is Changing Estimating

Not so very long ago, paper was the end-all, be-all. Estimators spent their days poring over rolls of plans. 

Today, though, a construction estimator needs to be tech-savvy. Using tools from material pricing databases to cloud-based spreadsheets that allow for collaboration delivers a number of benefits. Digital estimating processes give more people visibility into the process earlier on, allowing for more opportunities for cross-checks. At the same time, connecting estimating to other technology — like BIM models — builds in even more accuracy. Meanwhile, technology helps to expedite processes, helping estimators meet bid deadlines. 

As technology evolves, some parts of a construction estimator’s job will get easier. Even with more sophisticated software and data-driven processes, though, good job costing still relies on the individual’s contributions. From relationships with trade partners to experience overcoming obstacles in past jobs, a seasoned construction estimator brings a lot to the table to help their company succeed.  

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