In old times, people hire estimators to calculate the construction project budget. Hiring someone means investing a lot of money and paying someone monthly. It is not affordable for everyone.

Today, you can outsource estimators to save money and many other benefits. Let’s start this blog post and explore the benefits of outsourcing construction estimators!

What Role Do Estimators Play in the Construction World?

Before we shift to the focussed topic of this page, we must understand the estimator’s role in the construction industry.
  • Evaluating the project’s total cost
  • Determining the required quantity of materials and labor
  • Regularly updating budget with project progress
  • Analyzing risks and mitigating them with reliable solutions
  • Recording data
  • Controlling project costs & reducing them with effective strategies
  • Keeping an eye on the inflation rate and taking steps accordingly
  • Negotiating rates with suppliers
Above all, they are responsible for helping contractors and subcontractors calculate accuarte and precise project costs so they can ensure their bid wins.

Why Outsource Estimators Has Replaced an In-house Construction Estimating Team?

More than 90% of contractors believe in cost savings through outsourcing construction estimators. It means outsourced estimators have significantly replaced the in-house estimating team. But why is it so? Actually, hiring an in-house team to calculate the construction project budget is costly. And many other factors cause this to happen. Let’s explore them below!
  • High Cost

High expense is the most prominent factor that has shifted contractors from in-house estimating teams to outsourcing estimators. According to the March 2024 report, an estimator’s average salary is $89,806 in the US. Suppose, you have a team of 10 estimators in your company. It means you invest $898,060 in your employees’ salaries monthly. It is where outsourced estimators jump into the game. They charge between $8-$15 per hour and deliver estimates within 10 to 48 hours. Let’s consider the maximum figures to calculate the highest possible cost for construction estimation. Estimator’s per hour rate = $15 Estimation time required = 48 hours Total cost for estimation = $15 x 48 = $720 Wow, it is actually a big saving.
  • Waiting Times

Time-saving is one of the other advantages of outsourcing construction estimating. An in-house construction estimating team invests more time for the sake of working hours. They only focus on achieving their targets and that’s it. Therefore, an in-house estimating team has disappeared from the construction market.
  • Documentation & Paper Work

Suppose you are creating a bid for a kitchen renovation project in the US. You need estimation services for quality bidding. What will you do? You will go to your in-house estimators and discuss project details. It is where bundles of documentation and paperwork jump into the game. Undoubtedly, it is a time-consuming and money-eating factor in the construction estimation process. Everybody wants to stay away from this mess. Right? So, it is another source of replacement and one of the key benefits of outsourcing estimators for construction projects.
  • Inflexibility

In-house construction estimators team stay inflexible in their working. They follow fixed hours to work and never deliver beyond the requirements. They only put standard struggles to deliver estimates and never give something extraordinary, showing inflexibility. Clients can’t contact them before and after their working hours. Likewise, the in-house estimators team never offers ongoing assistance if you need changes in your plan. The client has to repeat the process to get fresh estimates.
  • Late Deliveries

The in-house estimators team has many construction projects to deal with. Therefore, the late delivery rate is high among them. And it is a factor no contractor can afford because it is highly adverse to the project success.
  • One Estimating Strategy for All Projects

Above all, in-house construction estimators implement a single strategy for all kinds of construction projects. They never bother to examine the project requirements and only give rough estimates. Therefore, inaccuracy chances are high in their calculations.
If you’re interested in learning more about the traditional approach and the role of in-house estimators, you can check out our previous blog post How to Hire a Construction Estimator?

How Outsourcing Construction Estimators is Beneficial?

Thanks to outsourcing construction estimators that have provided constructors with a reliable and trustworthy platform for building estimating services. They have covered all gaps and loops to understand the client’s needs and equip them with tailored budgeting solutions. Let’s explore the benefits of outsourcing construction estimators!
  • Cost Effective Solution

As we have discussed above, outsourced estimators are a good option for contractors who know the worth of money and want to invest it wisely. You can save many dollars by getting estimating services from outsourced estimators. They charge less and only demand for the work they do. You don’t need to pay them monthly or annually.
  • Access to Expertise & Industry Knowledge

Outsourced estimators give contractors open access to their expertise and industry knowledge. You can discuss anything related to the project budget with your estimators. They solve your queries on time by giving the most acceptable and conceptual answer. Furthermore, they enable you to make the right decisions on your own by suggesting to you the beneficial points for the success of your construction project.
  • Construction Budget Control

You want to reduce the project cost as much as possible. Outsourced estimators offer services to help you achieve this goal. They implement effective estimating strategies to cut down unnecessary expenses from the budgeting plan and reduce construction expenses. This approach also helps you increase your profit margins.
  • Increased Budget & Time Efficiency

Many contractors have reported that they have improved project efficiency with outsourced estimators. The statement is applicable for both budget and timelines. Outsourcing estimators help you reduce building costs (as we have mentioned in the previous point) and timelines. They comprehend the project scope and plan the estimating process accordingly. Furthermore, they consider all requirements, including labor, and materials, during takeoff assessment. This helps them estimate the precise construction budget without leaving gaps and loops. In other words, they reduce risk factors by 99.9% and ensure flawless project execution. There are no chances of budget and time overruns when you get estimates from outsourced estimators. Simply put, they reduce the chances of reworks that significantly increase the time efficiency of the construction project under consideration.
  • Access to Advanced Tools & Software

Outsourced estimators give you access to advanced estimating tools and software. You can monitor and keep checking the progress of your project through their provided dashboard. It also enables you to highlight the point you are unsatisfied with and ask them to modify it according to your expectations. Above all, the use of tools and software always equips you with 100% comprehensive and dependable estimates.
  • Efficient Risk Mitigation

Getting services from outsourced estimators can help you with better risk mitigation as they invest more valuable time in your project than an in-house estimating team. They thoroughly understand your project requirements and deliver tailored estimates, enabling you to create a quality bid for the project’s success.
  • Technology Integration

Outsourced estimators integrate technology and innovation on time. They never wait for the next minute and adapt things on the spot. They start learning the new technology and initiate practicing in their regular activities. This makes them more reliable in the construction estimating world.
  • Competitive Bidding

You can submit a highly competitive bid containing 100% accurate estimates by getting services from outsourced estimators. They always scan your competitors’ estimates and then work on yours. The approach enables them to find the loops in the competitors’ assessment and fill gaps in their own. This way, your bid win chances are increased.
  • High-Profit Margins

In-house estimators have a fixed percentage for contractors’ profit margins. They always go for it without trying to enhance them. However, outsourced estimators examine the project from all angles and highlight all the points where they can increase your profit. If your profit percentage is 5% or lower, you can increase it and bring it between 8-15% by hiring an outsourced estimator to calculate your construction project budget.
  • Business Growth

You can boost your business growth by 20% if you engage outsource estimators in your plan. Unlike in-house estimators who only deliver estimates, outsourced estimators are directed to increase your profit and enhance business growth. It is beneficial for both parties. Click Here to read our blog on the benefits of independent construction estimators and how they can help you save money.

How Outsourced Estimators Solve Your Construction Estimating Issues?

We have discussed the key benefits of outsourcing estimators for construction projects. It is time to explore how they generate these perks for contractors and other stakeholders.
  • Explore the below points to get the answer to this question!
  • Thoroughly review the project scope and requirements
  • Scan construction drawings
  • Conduct feasibility studies
  • Quantify material and labor needs precisely
  • Calculate construction estimates using software and tools
  • Consider contingencies and overhead costs
  • Consider competitors’ bids for quality enhancement
  • Check the quality of reports
  • Update data regularly
  • Negotiate rates with suppliers

How to Choose the Most Trustworthy Outsourced Estimating Provider?

Undoubtedly, outsourced estimators can help contractors in many ways. But your first decision and choice decide your project’s success. You must Outsource the most trustworthy construction estimator partner to win the game. Let’s see how you can find the most reliable estimating partner for your construction project!
  • Ask for his experience
  • Look for industry expertise
  • Check his technical proficiency
  • Observe his communication skills
  • Ask for his confidentiality and security strategies
  • Check his scalability in the market
  • Check his certifications
  • Review his portfolio

Tips to Work with Outsourced Estimators

You must know how to work with outsourced estimators to avoid conflicts. And here communication and transparency are essential from both sides. Whatever you share with your estimators must be clear to them. Whatever he delivers must be understandable for you. If anything confuses you at some point, clear them on the spot without any delays. It is essential to keep your construction project on the right track. Simply put, keep connected with your outsource estimators and stay updated with project progress until you win your client’s heart.

Wrap Up

So, outsourcing estimators for calculating the construction project budget can be a game changer. You can enjoy many benefits with this decision, including Access to Expertise & Industry Knowledge, Construction Budget Control, Increased Budget & Time Efficiency, Access to Advanced Tools & Software, Efficient Risk Mitigation, Technology Integration, Competitive Bidding, High-Profit Margins, and Business Growth. Just, be careful when hiring an outsourced estimator. Look for his experience, expertise, industry knowledge, estimating methods, certifications, and portfolio. Always choose the most trustworthy estimators to ensure your project wins.


Who are outsourcing construction estimators?

Outsourced construction estimators are professionals who calculate your project budget while only asking for the money they work for. It is like temporary hiring and you don’t need to pay them monthly. They work from a remote position and don’t need a space in your office for construction estimation.

Why should contractors hire outsourced estimators for budgeting services?

Contractors should hire outsourced estimators for budgeting services for the following reasons:
  • Cost-effectiveness
  • Access to industry knowledge and expertise
  • Integration of technology and innovation
  • Use of estimating software
  • Construction Budget Control
  • Increased budget and time efficiency
  • Efficient risk mitigation
  • Competitive bidding
  • High-profit margins
  • Business growth

How can one choose the most reliable outsourcing construction estimator for estimation?

One can choose the most reliable outsourcing construction estimator for estimation services by seeing the following qualities:
  • Experience
  • Industry expertise
  • Technical proficiency
  • Communication skills
  • Confidentiality and security strategies
  • Scalability
  • Certifications
  • Portfolio

Is outsourcing construction estimators secure?

Only hiring certified outsourced estimators is secure. Undoubtedly, there are scams in the market. Therefore you must look for the qualities (mentioned in the above answer) to ensure safety.

What is the proper method to communicate with outsourced estimators?

Outsourced estimators allow phone calls and email to communicate. Some also provide a dashboard for collaboration. The best options are the use of email and a dashboard. Both techniques keep data recorded and can solve conflicts when they happen.

For what kind of construction projects can outsource estimators deal with?

Outsourced estimators can deal with all construction projects, including commercial, residential, and industrial. More precisely, they can estimate the budget for:
  • Offices
  • Houses
  • Schools
  • Hospitals
  • Restaurants
  • Warehouses
  • Shopping malls
  • Bridges
  • Roads and highways…