What Does a Construction Estimator Do?

“Construction estimator” is a title given to a professional whose job is to determine the cost of a construction project before it starts. These experts survey plans and sites, contact subcontractors and materials suppliers, and consult with designers and clients to come up with a plan and budget.

While it’s not their job to make sure everyone is happy, a construction estimator does take everyone’s best interest into account. They ensure contractors make a profit while also ensuring that a job doesn’t overextend the customer. When an issue arises during the planning process, estimators make sure they find a reasonable solution that meets everyone’s needs.

Estimators can work for many different kinds of employers (more on the different types in a bit). They can work for an architecture or construction firm, for the client, for a subcontractor, or even freelance in a consulting role. Regardless of their employment status, great estimators are always in high demand.

The requirements for employment as a construction estimator vary. Smaller contractors may use their most experienced salesperson or the company owner for estimating. Larger outfits may choose seasoned project managers with years of experience in the industry. Architects may prefer to hire estimators with design experience.

In general, a construction estimator will typically have a bachelor’s degree in a construction-related field. Some companies might require a construction estimation certificate, as well. But there are plenty of companies that will overlook these “requirements” for experience as a general contractor or project manager.

As with all things in construction, there are several different types of construction estimators. These professionals may choose to specialize in a particular aspect of estimating or to consult with a specific party in the project process.

Client’s Estimator

A client’s estimator works for construction clients, but their roles and responsibilities vary. For one, they help manage the client’s expectations against their budget. The client explains the grand plan of the project. This includes location, materials, size, and style. If the project isn’t feasible, it’s the client’s estimator’s job to convey that point and help them come up with a new budget or a different plan.

Client estimators can also act as consultants when comparing bids and quotes. This is typically the case on smaller projects, such as building a home or a smaller commercial building. The estimator can help the client negotiate with contractors, act as a voice of reason, and help the client overcome any adversities that might arise during the planning process.

Contractor’s Estimator

Contractors also have estimators, and these professionals are vital to the success of the business. A contractor’s estimator studies the plans provided by an engineer or architect. In addition to that, they visit the site, determine material quantities, labor amounts, and other costs associated with taking the project from the ground up.

Once the estimator has an idea of the cost, they’ll put together an estimate for the client. But here’s the challenge: the estimate has to be right in the sweet spot. It has to be profitable for the contractor but not so much that the client can’t afford it. Also, the estimate can’t be so inexpensive that it sends up red flags and labels the contractor as incapable.

Designer’s Estimator

A designer or engineer’s estimator is often more of a consulting role. In this position, the estimator’s job is to help the designer pack as much value into a project as possible while still making it feasible for the other parties on the project.

A designer’s estimator can also be a problem solver. When the project appears to be headed over budget, the estimator can use their knowledge of the industry to come up with alternative ideas, methods, or materials to help bring the cost down.

Other considerations for these estimators are the job location, the logistics of getting all of the required materials, tools, personnel, and equipment on site. Additionally, it also covers any major site work that needs to be accomplished before the project can take off.

Subcontractor Estimator

In certain trades, a subcontractor might hire its own estimators. These are typically mechanical or electrical contractors. For these positions, the estimator’s job is to look at the drawings, survey the site, ensure everything meets code, and discuss desired outcomes with the client’s representative. They’ll then work with subcontractors’ engineers to come up with a system that meets the building’s needs.

In simplest terms, a construction estimator’s job is to determine how much a construction project will cost. They survey plans, estimate material quantities and volumes, consult with subcontractors and labor unions, and meet with the different parties involved to come up with an amount that the project will cost. This amount includes profit margins, materials costs, and everything involved in taking the project from start to finish.

Common construction estimator tasks include:

• Surveying plans to determine the types of materials, material quantities, trades involved, and any other aspect of the project that the estimate should account for.
• Creating accurate take-offs based on the drawings and any other potential variables that might impact the price.
• Visiting sites to ensure there aren’t any site conditions that could potentially impact the estimate.
• Consulting with subcontractors and labor unions to determine the labor rates and how many tradespeople are required.
• Contacting suppliers to get an idea of materials pricing and availability.
• Staying on top of industry trends, current data, and past fluctuations in materials or labor pricing.
• Developing an understanding of future legislation that might impact the cost and requirements of the project.
• Assessing risks associated with seasonal changes, political climates, potential shortages, and other delay-causing instances.
• Coordinating with the different subcontractors on the project to come up with a reasonable timeline for finishing each stage of the project.
• Advising the different parties on the project of unreasonable expectations, budget incompatibility, timing concerns, and other potential problems.

Last but not least, estimators put together estimates and quotes for clients. This entails taking all of the cost data, quantities, future volatility, material choices, and site requirements and rolling them into one umbrella price. These estimates need to be accurate to ensure that everyone on the project wins, which is a lot of pressure for one role on the project. For this reason alone, estimators are valuable members of the construction team, whether they work for a contractor, client, designer, or sub.

Construction Estimator Skills

The construction estimator plays an integral role in the successful outcome (or lack thereof) of a construction project. This takes a certain stack of skills, and missing just one of these could be the difference between being an estimator. This is until a better fit comes along or being an in-demand estimator who makes a career in the construction industry.

Organization

With so many different values represented in drawings, ideas mentioned in discussions, and constraints to meet, it’s critical to keep everything organized. Meetings, spreadsheets, prices, availability, and all of these different variables are part of an estimator’s everyday job. Hence, they need to stay organized to ensure their estimates are accurate. 

Communication

Estimators need to be masters of communication, and in fact, some emotional intelligence can go a long way, too. These professionals need to be able to talk to several different types of people. This includes daydreaming clients, busy general contractors, detail-oriented engineers, and authority figures like building inspectors.

Each of the above personalities requires a different touch. This is especially true when hastening communication in order to get answers, or when relaying upsetting information. Information such as budget incompatibility, hikes in material pricing, material shortages, potential delays, and just general misunderstandings of the task at hand. The estimator’s role is to handle all of that on their way to developing an accurate cost, regardless of who the employer is.

And while the estimator needs to be nimble, they also need to be honest. If they know the preferred subcontractor’s price or timeline isn’t reasonable, they can’t just forward that information to the GC or client. They have to be honest. The same applies to customers who have big dreams but tiny budgets. Estimators need to be able to administer a dose of reality, sometimes.

Construction Industry Experience

Construction experience is critical to the long-term success of a construction estimator. These professionals need to understand the inner workings of a construction project. They also have to understand everything represented on a set of drawings, how those items relate to each other in the real world, and when a proposed idea or design simply will not work.

Critical Thinking

Another important skill set that an estimator must possess is critical thinking. Estimators need to consider all of the different risks involved in putting together their estimates. They need to understand and account for potential material shortages or pricing volatility and other projects in the area that might draw more affordable labor. They also need to consider seasonal challenges like cold or rainy weather, and any potential legislation or political changes that could impact the cost of the project.

This is one of the most important skills an estimator can have. In most cases, an estimator provides the estimate 6 to 18 months in advance, which means a lot can change by the time the project wraps. Inaccurate estimates mean that customers are overpaying or contractors aren’t making their project profit margins—neither of which are good for the career of a construction estimator.

There are a lot of challenges to being a construction estimator. Fixed budgets, tight deadlines, tons of data, and future volatility can make coming up with an accurate estimate seem almost impossible. However, construction estimators that use software programs to create better estimates have discovered cheat codes.

Estimating software can boost an estimator’s workflow. These programs help record data, keep schedules, create accurate take-offs, and keep all of the necessary parties organized and in the loop.

Also, a construction ERP software solution can be a huge help. With these programs, estimators can look back at past projects and estimates to determine their accuracy, as well as pick up on any trends that might continue to impact that accuracy. Also, a dashboard complete with current projects ensures they know how their estimates are performing against real-time data.

Premiere Construction Software is a full-service construction ERP solution that can help estimators, contractors, developers, and other construction entities run better businesses. Schedule your demo today.