Construction Estimating Techniques Common Among Estimators
Various techniques are employed by project managers for cost estimation, based on several variables.
For instance, some businesses might require cost estimates to keep to corporate policies, while others might start with a rough estimate and refine it as the project moves forward.
The most effective techniques for cost estimation are listed below.
When using analogous estimating, the project manager determines the expenses by using the known expenses of a previous, comparable project.
This approach is based on past data and expert opinion. Since no two projects are alike, analogous estimation has a drawback.
As a result, it is typically utilized during the pre-construction phase of project planning, when there is minimal project information available.
This technique finds the required resources using statistical relationships or algorithms based on historical data. This method’s advantage is that it requires more data to assess costs and is more accurate than analogous estimating.
Here, we can easily estimate costs within the budget because we know the project’s square footage, average costs, and error margins.
Another name for this is detailed estimating.
The team and resources are estimated using this method based on the activity level. After that, the estimates are combined to create estimates for project levels, control accounts, and work packages.
Using this estimating method, a work component is estimated, and for reporting and tracking purposes, the detailed estimate is extended to higher levels.
The size and complexity of the activities determine how accurate this estimating method is.
Three cost estimates are shown here by the project manager. An optimistic estimate shows where money is spent most effectively, whereas a gloomy estimate shows where money is spent least effectively. The more likely scenario, represented by the third point, is a balance between the two.
Three-point estimating comes from program analysis and is based on weighted formulas. The expected costs and the range of uncertainty are provided by the costs computed using an assumed distribution.
Another name for this method is alternative analysis. It provides the options that are available in the correct order and describes how to carry them out. The best ways to complete project tasks within specified project constraints are offered by the data analysis method.
The benefit of this approach is that funds are budgeted for handling unforeseen expenses rather than going over budget. As a result, planned costs rise statistically. Now, let’s move on to the challenges that estimators face.
Challenges an Estimator Face
Even though it can be a rewarding career path, construction estimating is not without its challenges. These include:
The field of construction estimating is deadline-driven. There is frequently not much time between when a company is asked to submit a bid and when the bid is due. Estimators need to be prepared to take swift action while sacrificing the least accuracy amount.
A construction estimator typically depends on another person to obtain the required data. For instance, they might have to wait for a trade partner’s response to an RFI regarding their current labor rates and availability.
Estimators must tread carefully in this area, which makes accuracy a vital skill in their work. Overestimating a project’s costs could result in the owner selecting a less expensive option and losing the bid, while underestimating reduces the company’s profit margin.
In addition to having expertise in math and analytics, estimators must be able to maintain positive working relationships with both external trade partners and internal collaborators who supply pricing data.
Although they are sometimes disregarded, effective communication skills are among the best qualities of a great estimator.
A lot of construction estimators take pride in their company’s achievements. Their ability to perform their job well is largely what determines whether or not their company can get new business.
Additionally, they frequently feel accountable for cost overruns if their estimate turns out to be too low.
How Much Does a Construction Estimator Earn in the US?
The average yearly compensation for a cost estimator in the United States as of June 2021 is $75,186. Pay for entry-level cost estimators starts at $40,000 and goes up to $112,000 for more seasoned professionals. This range is determined by years of experience, location, education, and skill level.
The average pay based on experience is displayed in the table below.
| EXPERIENCE | ANNUAL SALARY | HOURLY RATE |
| High experience (15+ years) | $102,000 | $49 |
| 75th percentile (8+ years) | $86,000 | $41 |
| Average (4+ years) | $75,186 | $36 |
| 25th percentile (Fresh graduate) | $60,000 | $29 |
Opportunities for Construction Estimator Careers
Although an estimator’s job responsibilities involve a lot of work, their average salary of $85,000 as a construction estimator can cover a lot of that work.
Therefore, how to become a construction estimator is a question that many people with an interest in construction, accounting, or just a steady career path have.
An interest in the construction industry and an analytical mind at ease with numbers are qualities shared by successful estimators.
Just like they enjoy strolling around the job site, they should also enjoy performing calculations.
Consult the American Society of Professional Estimators (ASPE) and the Professional Construction Estimators Association (PCEA) of America, two of the industry’s top organizations, to gain a better understanding of this position.
Both provide certifications to estimators to enhance their analytical prowess and breadth of knowledge. Examining certifications can provide you with an idea of the qualifications needed for this position.
In addition, anyone interested in learning how to become a construction estimator needs to spend a day in the shoes of an estimator. You’ll have a far better understanding of this job and all the work necessary to obtain a construction estimator’s salary if you are familiar with their duties.
Construction estimating is often very rewarding for people who want to combine their skills in construction and finance. They can participate in the beginning stages of projects in this capacity, which helps businesses get contracts and, ultimately, propels the success of the company.
Skills a Construction Estimator Must Own
Construction estimators can put themselves in a better position to land a good job and a competitive salary by developing the necessary skills. The following abilities are required:
To compute even the smallest discrepancies in construction projects, estimators must possess strong mathematical abilities.
It is crucial for construction estimators because projects have limited time, and they must be adept at it to finish the work on schedule.
Because construction projects involve working with a variety of individuals, estimators must coordinate communication between project stakeholders.
Since they must work with several reports and blueprints, construction estimators require a sharp eye for detail. A thorough understanding of all supplies, labor, and machinery is necessary to produce high-quality reports.
Since a construction estimator must provide a great deal of advice to the project’s stakeholders at every stage of construction, additional abilities include organization and critical thinking.
Certifications for Skilled Estimators
A professional degree that indicates a person’s knowledge and proficiency in the field of estimating is the estimator certification.
Since employers are requiring estimating certification more and more, it gives candidates an upper hand when looking for work in the construction sector.
Additionally, it helps estimators who want to advance in their careers by giving them more recognition from employers and peers.
Pro Tip: Rather than learning exact formulas and procedures by heart, concentrate on comprehending the underlying concepts while preparing for an estimator certification exam.
Gaining a basic understanding of estimating will improve your understanding of the subject matter and raise your exam passing percentage.
Estimator Certifications
The top certifications currently provided for estimators are listed below.
- Certified Cost Estimator/Analyst (CCEA)
- Certified Construction Estimator (CCE)
- Certified Professional Estimator (CPE)
- American Society of Professional Estimators (ASPE) Certification
- Certified Quantity Surveyor (CQS)
- Project Management Professional (PMP)
Is Technology Making Construction Estimators’ Life Easy?
Yes! Technology is helping a lot in making construction easy and tells us the importance of construction estimating. But an estimator in the construction industry today needs to be tech-aware. There are several advantages to using collaborative tools like cloud-based spreadsheets and material pricing databases.
More opportunities for cross-checks are made possible by the early access to the process that digital estimating processes provide. At the same time, increasing accuracy is achieved by combining estimating with other technologies, such as building information models.
Meanwhile, estimators can meet bid deadlines by using technology to speed up processes.
Certain aspects of a construction estimator’s work will become simpler as technology advances. The contributions of every person are still necessary for effective job costing, even with increasingly advanced software and data-driven procedures.
An experienced construction estimator offers a lot to their company’s success, from connections with providers to past job challenges overcome.
The type of cost estimator used differs based on the size of the project. Throughout a variety of construction projects, estimators can play a variety of roles.
We define cost estimators primarily based on their employers. The following is a discussion of the various kinds of cost estimators:
