Pros and Cons of Outsourcing Construction Estimator
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In this fast-paced era of construction and technology, nobody can deny the role of an estimator and outsourcing services. Both fields are developing rapidly worldwide. The high inflation rate and continuously changing construction material prices have raised estimators’ importance. Moreover, outsourcing estimation services are also a point of conflict between various construction contractors. What do you think; is it better to outsource estimating services or not? As a construction analyst, I believe that outsourcing construction estimating services brings pros and cons. Let’s discuss this topic in detail and start with outsourcing.
What is Outsourcing?
Assigning a task to a third party, such as a firm or a freelancer, is outsourcing. If we talk about construction estimation outsourcing, then it refers to assigning cost estimation for a construction project to any third person.Outsourcing Construction Estimation in the US
According to business research insights, construction firms in the US have reported 20-30 per cent cost savings in construction after outsourcing estimation services. One of the main reasons to outsource estimation is the latest software and estimation tools, which most construction companies lack or don’t have skilled persons to operate. So, outsourcing your estimation services is becoming common in the US. However, it has both pros and cons while outsourcing. Let’s discuss them in detail.How Does Outsourcing Estimating Work?
Outsourcing is not just giving the data to any random party. There are some protocols for outsourcing construction estimating services to any other firm. The following are the details about outsourcing work for construction estimation.When to Consider Outsourcing Estimation for a Construction Project?
If you are considering outsourcing estimation, consider whether you need to outsource estimation. Outsourcing will be more beneficial in the following conditions- If you are new in the construction industry and lack the resources to hire a salaried estimator.
- If you do not have back-to-back projects, then occasional outsourcing is beneficial
- If you do not have enough resources to hire a salaried estimator.
Find An Expert Estimator
After finalizing that outsourcing is more beneficial for you. The next step is finding out an expert estimator in your area. You can search online about estimating firms and freelance estimators. Following are the tips to connect with an expert estimator- Find online freelance estimators or firms
- Choose any top 3 within your budget
- Check their reviews
- Ask about their portfolio
- If possible, Connect with their previous clients
- Book a consultation meeting with them to discuss your project
- Get A Quote
- Choose the one that is within your budget.
Discuss Project Scope
Once you find an expert estimator, book a meeting to discuss your project scope and provide all the necessary documents, such as the initial and shop drawings. Make sure you transparently communicate with the estimator, clearly explain your expectations, and set the deadline.Estimation Process
After this, the outsource estimator will thoroughly analyze the project scope, communicate with your team, listen to their ideas, and address their queries to keep them on the same page. They will then generate estimation reports that include material takeoffs, cost estimation, bid range, potential risk factors, and customized solutions. These reports are sent to you and your team on a shared digital platform where everyone will make suggestions and comments.Approval of Estimation Report
After addressing the reviews and suggestions, cross-checking reports, and fixing the errors, the outsource team again sent you the final report for your approval.Estimation Outsourcing Services Pros
The pros and cons of outsourcing truly depend upon the estimators’ experience. The following are some advantages of outsourcing estimation services.Cost Efficient
Outsourcing estimation services can help you save salaried money on hiring a constant estimator for your construction firm. You can outsource your work whenever you get a project to an estimation firm. This Point is more valid for small construction companies.Skilled Professionals
Outsourcing estimation means working with professionals in the estimation fields. These are people with the professional skills and ability to use the latest tools and technologies, such as BIM modeling and CAD, to determine estimation.Enhance Workflow
Authentic and precise estimation from an expert estimator’s team assists the contractors in managing the project workflow. How? Expert estimators provide detailed guidelines about the cost, materials specifications and potential clashes at the site, which alert the contractors to make informed decisions and prepare them to tackle the possible problems with alternative and practical solutions. Moreover, exact takeoffs help them complete the material quantity required to complete the project before the work starts on-site. In this way, they prevent unexpected project completion delays due to a material shortage or unforeseen circumstances on site.Save Time And Focus On the Core Objective
Outsource cost estimating services saves contractors time, allowing them to focus on their core purposes, such as the construction process, buying materials, and winning bids for new projects.Improve Team Efficiency
Nowadays, the latest software is available that focuses on a shared 2D and 3D model with the whole team. The estimators listen to the ideas of the entire team, such as constructors, contractors, and engineers, and share the 3D models with them. They incorporate their suggestions and keep the whole team on the same page, which helps to improve the team’s efficiency.Increase Profit Margin
The latest estimating tools provide precise material takeoffs with the exact quantities and costs. Estimates increase in cost with a profitable bid range, which helps the contractors win a profitable bid with a significant profit margin.Efficient Budget Management
Outsourcing estimating services helps you control a construction project’s overall budget. They implement the techniques to reduce overhead costs and help complete the project within the least budget possible.Access to the Latest Technology
Estimation experts have the skills to adapt and learn new software such as CAD Drafter and BIM. These tools present a virtual representation of the construction model so you can visualize your project before construction starts on the site. This helps you plan the whole project and its execution correctly to meet the client’s demands and complete the project on time.Alert About Risks on Site
In previous days, estimations were calculated by hand, and the chances of errors were high. But now, AI-integrated models not only reduce human errors but also enhance productivity by alerting people about potential risk factors that can happen at the site location. This is a convenient point for outsourcing estimation skills.Cons of Construction Estimator
Following are the cons of construction estimator services.Communication Challenges
Effective communication is a significant risk when outsourcing estimating services. When working with a third party, there may be chances that they don’t respond on time or that you have a communication gap due to your busy routine. Bad communication can affect the estimation of your project.Privacy Concerns
Once you finalize your choice of outsourced partner, you must provide them with all the data and information about your project, which may raise privacy concerns. It is advisable to sign an agreement about privacy concerns when dealing with an outsourced partner.Rely On Third Party
When you outsource your estimation to any other firm or person, you lose control of your project estimation and totally have to rely on the other person for the estimation. Therefore, it is advisable to always go with an experienced estimator with experience in construction projects and a proven track record of delivering successful estimations with precise takeoffs and cost estimations. In short we can say that there are both outsourcing benefits and disadvantages. What you get will totally depend upon the estimator you choose. An experienced estimator brings more advantages than disadvantages for you. If you are also looking for the best construction estimator who has the proven track record of delivering successful construction projects in the US (residential. commercial), contact “Construction Estimators”. We have 100+ in house construction estimators which remain available 24/7 for you. So, let’s connect for the successful construction projects estimation.Conclusion
Outsourcing construction estimating services is increasing daily due to its unlimited advantages. However, there are also some disadvantages of outsourcing, such as communication gaps and privacy concerns. Therefore, always properly research experienced estimators before finalizing one.Frequently Asked Question
What is outsourcing construction estimating services?
Assigning your estimation for a construction project to any other third party is outsourcing construction estimation.What is the estimated scope of outsourcing for construction projects in the US?
According to business research insights, construction firms in the US have reported 20-30 per cent cost savings in construction after outsourcing estimation services.What are the advantages of Construction estimation outsourcing?
The following are the advantages of construction estimating outsourcing- Cost efficient
- Time efficient
- Budget management
- Access to expertise
- Competitive bid range
- Significant profit margin
What are the disadvantages of construction estimation outsourcing?
The following are the disadvantages of construction estimation outsourcing- Communication gap
- Lose control of project estimation
- Confidential concerns