In the world of construction, long before the final product is complete or physical work begins, there is someone crunching numbers, reviewing plans and precisely estimating costs.
That person is the construction estimator, and in a lot of ways, they’re responsible for determining every cost associated with a given project and expected profits, as well as compiling this information into a competitive bid.
Estimators are crucial to the success of a construction project. So, let’s examine the role construction estimators have in the construction industry.
Key Takeaways for Commercial Construction Estimators
- Construction estimators ensure every cost related to a project is accounted for within their bid proposal.
- Estimators frequently factor in contingencies to offset market conditions, weather or material shortages.
- Since their jobs are multi-faceted, estimators must have a range of skills, including attention to detail, analytical thinking, industry knowledge and tech savviness.
- Many estimators rely on construction estimating software — like The EDGE® — to simplify their workflow so they can create more winning bids faster.
What Is a Construction Estimator?
A construction estimator is responsible for calculating the total cost of a building project before it begins. This includes:
- Materials
- Labor
- Equipment
- Subcontractor fees
- Permits
Estimators help companies determine how much a project will cost, how long it will take and whether it’s financially viable to bid on in the first place.
An estimator’s job requires a combination of financial insight with a deep understanding of construction processes and market conditions.
Why Do Construction Estimators Matter?
The accuracy of an estimator’s work directly impacts the success of not only the project but your entire construction business.
Underestimating can lead to budget overruns, disputes and significant financial losses. On the other hand, overestimating can result in losing out on bids altogether.
In competitive bidding environments — such as government contracts or large commercial projects — a good estimate sets you apart from other bidders.
The key to a good estimate is employing an expert estimator who’s able to balance cost accuracy, profit margins and market trends while forecasting potential issues.
What are the Key Responsibilities of a Construction Estimator?
Construction estimators’ responsibilities are multi-faceted. They’re involved in many processes from when a project is introduced to your company until its completion.
Analyzing Project Documents
Estimators begin by reviewing architectural plans, engineering drawings, blueprints and project specifications.
These documents provide guidance for everything else they do. Any discrepancies or ambiguous areas in project documents must be mentioned by estimators because if they’re missed, they could have a major impact on cost and project timelines.
Quantifying Materials and Labor
Estimators are responsible for quantity takeoff, or the calculating of all construction material quantities that will be needed to complete the project.
They’ll calculate this information based on precise measurements and review of key project documents. Additionally, estimators must evaluate labor requirements based on project scope, timelines and local wage rates.
Sourcing and Pricing
Estimators in construction request quotes from suppliers and subcontractors and consider market price trends for material and labor costs.
They also must factor in delivery charges for equipment, fuel costs and taxes. This part of the process requires strong relationships with suppliers and subcontractors and up-to-date knowledge of market conditions.
Pricing can shift quickly due to factors like material shortages or rising fuel costs, so staying informed helps estimators forecast potential cost increases to prevent costly surprises later.
Risk Mitigation and Contingency Planning
Experienced estimators account for unknowns like weather delays, material shortages or site access issues within their bids. They often include contingencies—or costs that are added to the estimate to account for risks without jeopardizing the bid’s competitiveness.
When creating contingencies, estimators must maintain a careful balance — too much contingency can price you out of a job, while too little leaves you exposed to financial losses.
Estimators use past project data, local knowledge and construction industry trends to make informed decisions about where and how much risk to factor in.
Ultimately, this proactive approach helps protect both profit margins and project timelines.
Preparing and Submitting Bids
Once project costs are calculated, estimators compile the data into a formal bid proposal and submit it to the project owner. The bid includes a breakdown of:
- Costs
- Timelines
- Contingencies
The final bid must be accurate, clearly presented and aligned with the client’s expectations to avoid confusion or disputes later in the project.
A well-crafted bid not only improves the chances of winning the project but also sets the tone for a transparent and professional working relationship.
Collaborating Across Teams
Estimators must frequently coordinate with project managers, engineers, architects and suppliers to ensure project success.
Input from these colleagues helps ensure the estimate reflects real-world conditions, design intent and potential constraints.
By bridging the gap between planning and execution, estimators help align the entire workforce around realistic expectations and achieve success.
What Key Skills Do Great Estimators Have?
There are a range of skills estimators must have to succeed, including:
- Attention to Detail: One miscounted item can result in thousands of dollars in unrealized costs.
- Analytical Thinking: The ability to assess complex documents and forecast potential issues is a crucial to developing accurate estimates that factor in current market conditions.
- Construction Knowledge: Estimators need to understand construction methods, materials and labor practices to provide detailed, effective estimates.
- Tech Awareness: Proficiency in estimating software is a more common skill in recent years as estimators are expected to create winning bids faster.
Ultimately, these skills will help estimators build a repeatable estimating framework that helps them juggle multiple projects simultaneously and build more winning bids.
What Digital Tools Do Modern Estimators Use?
Many estimators are investing in construction estimating software to simplify their estimating process. This software offers features like:
- All-in-one takeoff and estimating
- Trade-specific databases
- Automated labor calculations
- Proposal writer that pulls data from your estimate into your bid proposal
Construction estimating software is built to save time, reduce errors and create consistency within the estimating process.
By streamlining takeoffs, automating calculations and providing access to accurate, real-time data, this software empowers estimators to work more efficiently and bid more jobs.
It also gives estimators the ability to review past estimates, learn from them and pull relevant data for future estimates.
See Why Construction Estimators Trust The EDGE
A construction estimator doesn’t just calculate numbers — they calculate risk, opportunity and potential. Their work enables builders to commit to projects with confidence, clients to trust in the budget and companies to stay profitable.
As the construction industry continues to evolve with technology, more and more companies are investing in construction estimating software — like The EDGE — to simplify their estimating process. With The EDGE, estimators can:
- Create material takeoff and estimates on the same screen
- Access trade-specific databases to build better bids faster
- Auto-calculate production changes, factor them into change orders and get approvals to keep projects on track
For more information about The EDGE, speak with a specialist today.
