How to become a cost estimator and succeed

When a company launches a new product or service, each part of the project has its own cost. Whether it’s the ingredients to create a new product or a team’s internal software, someone needs to accurately monitor the cost of everything.

Someone is a cost estimator. If you’re good with numbers and statistics, this position can be a lucrative career that leverages your math and analytical skills while helping a business grow.

The information that cost estimators gather while working directly with suppliers helps executives bid for and negotiate the best prices for their materials and resources.They play an important role in the creation and management of budgets for individual projects cost estimating softwaregiving teams the data they need to determine whether their work is financially viable.

Why Projects Need a Cost Estimator

Any new project sounds like a good idea before you start doing the financial math.There is a reason 54% of manufacturing projects The final cost was higher than originally anticipated. Without accurate estimates, budgets can easily get out of hand.

Working with a cost estimator keeps the project on schedule and on budget. These estimates have many benefits, including:

• Increase profit margins. There are many factors that can affect the final cost of a project, especially if it lasts for a long time. The longer a project takes, the more susceptible it is to costly obstacles such as inflation or staff changes. But with accurate estimates, you can plan for some of these unexpected issues and help keep project profitability on track.
• More accurate forecasting and planning.Being able to plan ahead helps keep projects under control scope and allows teams to manage their resources more efficiently.
• Enhanced Resource management. When you know what is needed to complete a project, you can better prepare for different needs. For example, being able to identify skill or resource gaps upfront frees managers up to hire and train new employees to fill those gaps.
• Stronger supplier relationships. Cost estimators work closely with suppliers to determine accurate projections of material costs. When estimates are accurate, more trust is built between client and supplier, resulting in a more effective working relationship.

How to become a cost estimator

There is no one right way to become a cost estimator. Before going to college, it’s a good idea to think about the industry you want to work in, as this can help you determine the type of degree you want to get.

Cost estimator level

For those interested in a career in construction, a bachelor’s degree in a major such as construction science, engineering, or construction management can be a great starting point. However, manufacturing companies will also look for majors in business-related fields such as accounting, finance, economics and mathematics, as well as some courses in the physical sciences.

The goal of your degree should be to provide you with some key skills that you can bring to your first professional experience as a cost estimator. Practical skills such as mathematics and analysis are vital, but “Soft skills“Things like communication, attention to detail and critical thinking.

It’s possible to work as a cost estimator without a degree, but it takes longer to advance from entry-level positions. Having experience in the construction industry, in particular, can be a great alternative to a traditional education. But without extensive work experience or a relevant degree, finding a job in this field can be more difficult. Often, those who become cost estimators without a degree transitioned into the job from a similar industry and have years of practical experience behind them.

Cost Estimator Job Types

The industry you work in often determines the type of work you end up doing as a cost estimator. Some of the most common are:

• Cost Analyst or Estimating Coordinator. These are the most basic positions for cost estimators. At this level, you will work under the guidance of a senior estimator and learn how to gather data when preparing your own estimates for small projects.
• Project Cost Estimator. Moving into a mid-career position brings more responsibility for your own projects. By now, you should have a solid foundation of skills and be able to estimate throughout the life of a project.
• Principal or senior cost estimator. At a high level, you can learn more about project estimates. Once you reach this point, you may also be responsible for supervising the work of junior staff.
• cost control manager. Director-level positions focus on the big picture. These individuals have a deep understanding of risk assessment, project management, and financial forecasting.
• Chief Estimating Officer or Vice President of Estimating. Promotion to a senior executive position will free you from the day-to-day estimating job. The focus here is on strategic financial planning to align projects with higher-level corporate goals. These positions also carry a certain degree of influence in decision-making.

How much does a cost estimator make?

The industry you choose to work in and the level you aspire to achieve determine your expected salary as a cost estimator.this National average salary In 2022 it is $71,200.

Top Construction Cost Estimating Software

As a cost estimator, you rely heavily on technology to track your estimates and make accurate forecasts for each project. Using specialized cost estimating software, such as those for the construction industry, is one of the best ways to achieve this.

To be included in the construction cost estimating category, platforms must:

• Generate accurate estimates, bills of quantities (BoQ) or budgets for potential construction projects
• Quantity digitization
• Generate or provide templates for bids, proposals, cost reports, or other types of project cost documents
• Tags to promote line items, proposals, and client or worksite information
• Providing or providing access to a cost repository

* Below are the top five leading construction estimating software solutions from G2’s 2024 Winter Grid Report. Some comments may be edited for clarity.

1. Procurement

purchase Construction software helps teams manage projects, resources and finances related to construction projects. The tool connects project contributors with technology solutions built specifically for construction industry professionals such as property owners, general contractors, and specialty contractors.

What users like most:

“The constant addition of features, updates and new features, and how well it works without ongoing issues, is what sets Procore apart from other software. Once set up, it is user-friendly and a hassle-free Comprehensive and easy way to track your project from start to finish. Plus, the ability to work with architects/owners/contractors is very helpful and included in the cost.”

– Procore ReviewChristina H.

What users don’t like:

“You can’t batch edit statuses. I think it would be helpful to have a bar chart of observations and the ability to assign them to multiple people.”

– Procore ReviewJason H.

2. Autodesk Construction Cloud

Autodesk Architecture Cloud Connect teams to data and workflows across all areas of every construction project to minimize risk, increase efficiency and increase profitability. Autodesk provides users with a broad range of field execution and project management tools in a single software platform that is easy to deploy, adopt, and use.

What users like most:

“Autodesk is constantly adding new features to help improve productivity and communication on projects. The Design Collaboration module is a great tool for project managers to review designs during the project, without prior knowledge. “

– Autodesk Review, Rick H.

What users don’t like:

“Their account and project management is quite complex. I had to go through a lot of options to create my project and set it up and assign roles, and oddly enough I had to assign my own role to each product I used under Construction Cloud. Such as documentation, builds, etc.”

– Autodesk ReviewAshrut V.

3.Trimble Accubid Classic Edition

Trimble Accubid Classic Allows contractors to collect and manage bids, helping them build a comprehensive database of materials and labor costs. The tool provides a comprehensive materials and labor library of more than 40,000 projects.

What users like most:

“It’s very easy to add projects and components that meet our needs. I’ve been adding to and modifying our library for 18 years and I still don’t use 50% of its capacity. I also like the integration with Live Count which makes my estimates Departments can go completely paperless. No more planning to clutter the workspace.”

– Trimble Accubid Classic ReviewRandy M.

What users don’t like:

“User interfaces can be unforgiving. Many features can be completely unknown without special training. Discoverability and functionality need an overhaul to meet the standards expected by a more tech-savvy generation.”

– Trimble Accubid Classic ReviewGarrett G.

4. know

As a project management and cost platform, Know Built for trade contractors to efficiently organize projects, teams, and finances. It allows users to easily track projects and invoice customers in one place.

What users like most:

「它提供了許多功能，可以讓發票、帳單、日程安排以及承包商保持盈利所需的許多其他事項保持井井有條。 這將改變您的承包業務的運作方式，您會發現自己每天都在使用該software.”

– Know the commentsChristian B.

What users don’t like:

“One of my biggest complaints from the accounting side (as a company in California) is sales tax tracking. I know that’s not an issue every company or every industry faces.”

– Know the commentsKathy B.

5. Plan Swift

Plan quickly is a top-notch takeoff and estimating software that allows estimators to improve the accuracy of any project. It is an easy-to-use visual point-and-click interface that allows users to measure linear, unit count, square footage, pitch, and angle measurements in seconds with just a click.

What users like most:

“The main thing I like about it is that it has a ton of add-ons for specific transactions. This helps simplify the takeoff process if a company typically adopts a specific style.”

– PlanSwift reviewAshley B.

What users don’t like:

“The learning curve for this software is long. Additionally, collaboration between users can be a pain. I need to email my files to another user and sometimes the files are sent with missing items or not even sent. The cost per user is also a bit high.”

– PlanSwift reviewJaime R.

excellence assessment

The role of a cost estimator is one of the most important in many industries. This is a big responsibility. After all, it’s you who decides whether the project is financially viable. But for people who are numbers-oriented and analytical, this could be a good career choice.

Learn the ropes of construction and manufacturing project management Manufacturing smart software It helps you collect and analyze data from multiple sources.