Accurately forecasting the cost, size, and duration of future projects is vital to the survival of any business. Estimators develop the cost information that business owners and managers need to make a bid for a contract or to decide on the profitability of a proposed new project or product. They also determine which endeavors are making a profit.
Estimators collect and analyze data on all of the factors that can affect costs, such as materials, labor, location, duration of the project, and special machinery requirements, including computer hardware and software. Job duties vary widely depending on the type and size of the project.
The methods for estimating costs can also differ greatly. On a large construction project, for example, the estimating process begins with the decision to submit a bid. After reviewing various preliminary drawings and specifications, the Estimator visits the site of the proposed project. The Estimator gathers information on access to the site; surface topography and drainage, and the availability of electricity, water, and other services. The Estimator records this information, which may go in the final project estimate.
After the site visit, the Estimator determines the quantity of materials and the labor required to complete the firm’s part of the project. This process, called the quantity survey or “takeoff,” involves completing standard estimating forms, filling in dimensions, numbers of units, and other information. A Cost Estimator working for a general contractor, for example, estimates the costs of all of the items that the contractor must provide. Although subcontractors estimate their costs as part of their own bidding process, the general contractor’s Cost Estimator often analyzes bids made by subcontractors. Also during the takeoff process, the Estimator must make decisions concerning equipment needs, the sequence of operations, the size of the crew required, and physical constraints at the site. Allowances for wasted materials, inclement weather, shipping delays, and other factors that may increase costs also must be incorporated in the estimate.
After completing the quantity surveys, the Estimator prepares a cost summary for the entire project, which includes the costs of labor, equipment, materials, subcontractors, overhead, taxes, insurance, markup, and any additional costs that may affect the project. The Chief Estimator then prepares the bid proposal for submission to the owner. On large construction projects, there may be several Estimators, each specializing in one area, such as electrical work or excavation, concrete, and forms.
Construction Cost Estimators also may be employed by the project’s architect, engineering firm, or owner to help establish a budget, manage and control project costs, and to track actual costs relative to bid specifications as the project develops. During construction, Estimators may be employed to manage the cost of change orders and negotiate and settle and extra costs or mitigate potential claims. Estimators may also be called upon as expert witness on cost in a construction dispute case.
Source: U.S. Department of Labor, Bureau of Labor Statistics, Occupational Outlook Handbook