Construction Estimator

Nature of the Work:

Accurately forecasting the cost of future projects is vital to the survival of any business. Cost estimators develop the cost information that business owners or managers need to make a bid for a contract or to decide whether a proposed new product will be profitable. They also determine which endeavors are making a profit.

Regardless of the industry in which they work, estimators compile and analyze data on all of the factors that can influence costs-such as materials, labor, location, and special machinery requirements, including computer hardware and software. Job duties vary widely depending on the type and size of the project.

The methods and motivations for estimating costs can differ greatly by industry. On a construction project, for example, the estimating process begins with the decision to submit a bid. After reviewing various preliminary drawings and specifications, the estimator visits the site of the proposed project. The estimator needs to gather information on access to the site and the availability of electricity, water, and other services, as well as on surface topography and drainage. The information developed during the site visit usually is recorded in a signed report that is included in the final project estimate.

After the site visit, the estimator determines the quantity of materials and labor the firm will need to furnish. This process, called the quantity survey or "takeoff," involves completing standard estimating forms, filling in dimensions, numbers of units, and other information. A cost estimator working for a general contractor, for example, estimates the costs of all of the items that the contractor must provide. Although subcontractors estimate their costs as part of their own bidding process, the general contractor's cost estimator often analyzes bids made by subcontractors as well. Also during the takeoff process, the estimator must make decisions concerning equipment needs, the sequence of operations, the size of the crew required, and physical constraints at the site. Allowances for wasted materials, inclement weather, shipping delays, and other factors that may increase costs also must be incorporated in the estimate.

On completion of the quantity surveys, the estimator prepares a cost summary for the entire project, including the costs of labor, equipment, materials, subcontracts, overhead, taxes, insurance, markup, and any other costs that may affect the project. The chief estimator then prepares the bid proposal for submission to the owner.

Working Conditions:

Although estimators spend most of their time in an office, construction estimators must make visits to project worksites that can be dusty, dirty, and occasionally hazardous. Likewise, estimators in manufacturing must spend time on the factory floor, where it also can be noisy and dirty. In some industries, frequent travel between a firm's headquarters and its subsidiaries or subcontractors may be required.

Although estimators normally work a 40-hour week, overtime is common. Cost estimators often work under pressure and stress, especially when facing bid deadlines. Inaccurate estimating can cause a firm to lose a bid or to lose money on a job that was not accurately estimated.

Education:

Job entry requirements for cost estimators vary by industry. In the construction industry, employers increasingly prefer individuals with a degree in building construction, construction management, construction science, engineering, or architecture. However, most construction estimators also have considerable construction experience, gained through work in the industry, internships, or cooperative education programs. Applicants with a thorough knowledge of construction materials, costs, and procedures in areas ranging from heavy construction to electrical work, plumbing systems, or masonry work have a competitive edge.

Job Outlook:

Overall employment of cost estimators is expected to grow faster than average for all occupations through the year 2014. In addition to openings created by growth, some job openings will arise from the need to replace workers who transfer to other occupations or leave the labor force. In construction and manufacturing-the primary employers of cost estimators-job prospects should be best for those with industry work experience and a bachelor's degree in a related field.

Employment growth in the construction industry, in which most cost estimators are employed, will account for most new jobs in this occupation. Construction and repair of highways, streets, and bridges, as well as construction of more subway systems, airports, water and sewage systems, and electric power plants and transmission lines, will stimulate demand for many more cost estimators. Similarly, increasing population and changing demographics will boost demand for residential construction and remodeling and school construction and repair, spurring demand for more cost estimators. As the population ages, the demand for nursing and extended-care facilities will increase. Job prospects in construction should be best for cost estimators who have a degree in construction management or in construction science, engineering, or architecture and who have practical experience in various phases of construction or in a specialty craft area.

Earnings:

Salaries of cost estimators vary widely by experience, education, size of firm, and industry. Median annual earnings of cost estimators in May 2004 were $49,940. The middle 50 percent earned between $38,420 and $65,620. The lowest 10 percent earned less than $30,240, and the highest 10 percent earned more than $84,870. Median annual earnings in the industries employing the largest numbers of cost estimators in May 2004 were:

• Nonresidential building construction: $56,570
• Building equipment contractors: $53,310
• Residential building construction: $49,830
• Foundation, structure, and building exterior contractors: $49,500
• Building finishing contractors: $47,980

College graduates with degrees in fields that provide a strong background in cost estimating, such as engineering or construction management, could start at a higher level. According to a July 2005 salary survey by the National Association of Colleges and Employers, those with bachelor's degrees in construction science/management received job offers averaging $42,923 a year.

More Career Info:

The following link will take you to the Bureau of Labor Statistics’ Occupational Outlook Handbook (2008-2009). This handbook provides additional information on training and education, employment, job prospects, and more for hundreds of different types of jobs. The Occupational Outlook Handbook is a nationally recognized source of career information, designed to provide valuable assistance to individuals making decisions about their future work lives.

http://www.bls.gov/oco/ocos006.htm

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