The Role of Construction Estimators

When so many construction projects go over budget, the construction estimator has the formidable job of aligning costs and timelines for even the most complex jobs. Here, we’ll look at what the estimator does, how they make projections, common challenges, and why hiring a skilled professional with the right expertise is so important.

What Does a Construction Estimator Do?

A construction estimator has to determine how much a company will spend on a project to keep their bottom line profitable. When so many contractors rely on winning bids to stay in business, the estimator has to strike a careful balance: they have to calculate a number that is low enough to be competitive but high enough to avoid loss.

So, let’s say that a contractor is up for a state-sponsored project to improve existing city infrastructure. Government officials are looking to save tax-payer dollars without endangering public safety, so it’s important for them to choose the most reputable company with the best price.

The estimator will have to estimate not just direct costs, like the price of PPE or concrete, but also indirect costs, like full-time employee salaries and office supplies. Finally, they’ll need to consider both the relationships of their vendors and trade partners as well as their availability and pricing. All the while, professional estimators make contingency plans to ensure that they’re accounting for the unexpected.

Types of Jobs That Hire Construction Estimators

Construction estimators can apply their expertise to a number of construction jobs, including commercial, residential, and government projects.

They’re often called in for large-scale projects like custom homes, large shopping centers, or roadway repairs. Some construction estimators may feel comfortable working on an array of projects, though some estimators prefer to specialize in a specific category.

For example, you may find an estimator in a large construction firm that only estimates the costs of electrical work. In general, the smaller the contractor, the more likely that the estimator will need to wear multiple hats. 

 Main Responsibilities of a Construction Estimator

Construction estimators will typically take charge of the following tasks:

• Estimate breakdown: Estimators need to break each category down to show how they arrived at their final totals. They’ll need to account for costs like materials, labor, equipment, and vendors.
• Risk assessment: From supply chain delays to inclement weather to price hikes, construction projects rarely go as planned. Estimators need to be aware of not just what the risks are, but how they’re likely to impact the overall estimate, schedule, and client satisfaction.
• Collaborations with key stakeholders: The construction estimator plays a connective role in the project, from architects to engineers to project managers. If they’re not communicating with the relevant project teams, key decisions can be missed, causing delays or budget issues.
• Negotiations: As the estimator creates bids for each project, they may need to work with clients to explain each line item and potentially negotiate the terms, costs, and conditions to reach a final agreement.

Skills Required for Construction Estimators

Construction estimators need strong mathematical and analytical skills to create accurate estimates. They also typically need familiarity with standard digital tools and software.

Today’s cloud-based solutions make it possible to consolidate project documents under one platform, so it’s easier to track updates, manage all bids, and double-check certain facts. It's important for estimators to know how to organize their documentation, so it's easier to refer to the correct facts and figures.

Long before construction starts, construction estimators need to facilitate teamwork and communication. They need to have strong record-keeping skills, so they’re able to answer questions and justify their many decisions. So, if the CFO wants to know why the company’s bid is 20% over the average bid of all the competition, the estimator needs to be ready with strong talking points about why the competition is undercutting their costs.

Construction estimating helps decision-makers maintain a handle on profits and losses without compromising their ability to earn future work. So, if the construction estimator isn't actively involved in the project negotiations, they can coach their colleagues to make convincing arguments about why their bid supports the quality work they plan to do.

The Importance of Hiring Skilled Construction Estimators

Cost estimating in construction comes down to helping companies avoid budget overruns, which are unfortunately common in the construction industry. With fewer financial surprises, leadership and staff alike are more likely to stay on schedule, maintain a solid reputation, and remain competitive even on the most lucrative projects.

Construction estimators also make it easier to estimate resources, including labor and materials. When leadership knows what they’ll need to keep the project rolling, even if a step or two doesn’t go according to plan, they’ll feel more confident on the job. Skilled estimators can minimize the odds of delays or material shortages by considering common challenges in project construction and creating contingency plans for multiple scenarios.

The construction estimator is essentially the financial glue to a project, making it possible for everyone to plan more effectively. While they cannot account for every conceivable event, the best estimators will use their mathematical and planning skills to provide concrete information on staffing, materials, and vendors.

How Should Construction Estimators Factor in Job Site Theft?

Construction estimators should consider how everything from supply chains to labor shortages to job site theft impacts their bottom line. However, considering the average loss on a job site is $6,000 and the total losses in the industry are $1 billion annually, it’s not always easy to factor in the high theft costs if multiple pieces of equipment are left unsecured.

Given that the recovery rate of stolen items is just 7%, leaders need to be aware of how a single successful theft could set back their project goals.

One way to reduce the odds of theft is to invest in your jobsite security. With the help of perimeter protection equipment, traceable registration numbers on all major machinery, and clear employee policies, you can introduce barriers to theft that make it more likely that people will think twice about taking your vehicles or tools.

Job site thefts occur for any number of reasons. However, whether it's a casual, opportunity crime or a more orchestrated setup, it can overrun your budget by thousands of dollars. If you want to learn more about how to improve your on-site security, check out our blog on how to prevent job site theft.