Cost Estimator
A cost estimator plays a crucial role in various industries, primarily construction and manufacturing, by forecasting project budgets. These professionals analyze numerous factors, such as labor, materials, project duration, and site conditions, to develop accurate cost projections. Their estimates are vital for businesses to make competitive bids on contracts and evaluate profitability. Most cost estimators work in office settings, but they often visit job sites to gather essential data, requiring them to be mindful of safety hazards.
Individuals interested in this career typically have a background in mathematics, engineering, or accounting, and they enjoy problem-solving and teamwork. While a bachelor's degree in a relevant field is commonly required, some may enter the profession with an associate degree and extensive industry experience. Cost estimators utilize specialized software and collaborate closely with various stakeholders, including contractors and business owners, to ensure precise and effective cost management throughout a project’s lifecycle. The demand for cost estimators may be declining, but their contributions remain integral to project planning and execution.
Cost Estimator
Snapshot
Career Cluster(s): Architecture & Construction
Manufacturing
Interests: Mathematics, engineering, accounting, solving problems, working with a team
Earnings (Yearly Median): $74,740 per year $35.94 per hour
Employment & Outlook: -3% (Decline)
Entry-Level Education Bachelor's degree
Related Work Experience None
On-the-job-Training Moderate-term on-the-job training
Overview
Sphere of Work. Cost estimators forecast the budgets of projects in a variety of industries. They usually work in the construction industry, where they estimate the costs and duration of projects, but they can also work in the manufacturing industry. The forecasts developed by cost estimators are used by others in the industry to make bids on construction or manufacturing contracts. They are essential to their respective industries, as they help determine the profitability of construction or manufacturing projects and products.
Work Environment. Cost estimators spend the majority of their time in offices. However, visiting construction sites and manufacturing plants is usually necessary for them to forecast costs accurately. Cost estimators must be aware of the various hazards present at these sites. They work closely with business owners, contractors, and project managers to help ensure an accurate cost is forecasted.
Occupation Interest. The cost-estimator profession involves a great deal of working with numbers, so the job tends to attract individuals who enjoy mathematics, engineering, and accounting. Anyone with a strong background in these fields can find success as a cost estimator, but the field does welcome people from a broad range of backgrounds. Cost estimators are detail-oriented problem solvers who enjoy working as part of a team in both an office and a construction or manufacturing environment. Many companies require a cost estimator to be certified, so individuals should be willing to further their training in order to excel.
A Day in the Life—Duties and Responsibilities. Cost estimating for construction and manufacturing involves collecting information and analyzing data on a large variety of factors. These factors vary for each project, but they typically include labor, materials, location, length of the project and any specialized hardware and software that may be needed. Multiple cost estimators may work together on very large projects, with each providing estimates for a specific area of work.
A cost estimator establishes a budget through a variety of methods. For construction projects, cost estimation begins by reviewing the relevant drawings and specifications submitted for the project. Once these are analyzed, and the construction company decides to make a bid, the cost estimator typically visits the location of the future construction project. At the site, they collect all relevant information, including the required utilities, material, insurance, labor, taxes or fees, and projected duration of the project, and estimate all of the costs needed for the contractor to complete the project. Included in these estimates are incidentals such as inclement weather and wasted material.
After a cost estimator surveys all of these aspects, they put together a cost summary for the whole project. This summary is presented to everyone involved in the project, including business owners, engineers, and subcontractors. During the project’s development and duration, an estimator tracks and manages the costs and may also be expected to negotiate costs, moderate any extra costs that arise, or suggest cost-saving measures.
Cost estimators in manufacturing perform similar tasks as those in construction. They forecast all costs associated with the development and production of products.
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Work Environment
Immediate Physical Environment. The majority of cost estimation is done in an office environment. Related research is typically performed on-site at construction work sites and manufacturing plants. These environments can pose a variety of hazards, so proper safety precautions must be taken. To evaluate these sites, travel may be required.
Human Environment. To forecast a project’s budget accurately, cost estimators work closely with others in their industry, including business owners, accountants, contractors, subcontractors, manufacturers, architects or designers, and supervisors. They may be required to negotiate costs.
Technological Environment. Cost estimators rely heavily on computers for their profession. Software for accounting, statistics, mathematics, modeling, and project management is frequently used. Cost estimators also use blueprints and schematics to help estimate costs precisely.
Education, Training, and Advancement
High School/Secondary. Education requirements for a cost estimator vary by industry, but employers commonly require an individual to have at least completed high school or an equivalent degree program. High school students considering a profession as a cost estimator will benefit from courses in mathematics, computer science, and statistics, as well as any course that involves finance or economics. Those interested in cost estimating should strongly consider pursuing a postsecondary degree in a relevant subject area.
Postsecondary. Employers in the construction and manufacturing industry usually require a cost estimator to have a bachelor’s degree in a relevant field. Exceptions are sometimes made for individuals who have years of experience in the construction industry and obtain a relevant associate’s degree. Relevant fields include civil engineering and industrial engineering, finance, business management, operations research, and mathematics. These course programs are offered in a range of institutions, including colleges and universities. Technical and trade schools offer construction-related programs that can teach and train an individual in construction fields related to cost estimating.
Many schools that offer civil and industrial engineering degrees include cost estimating as part of the program, as do schools that offer master’s degrees in construction science or construction management. These schools offer opportunities for individuals to network with others in related industries.
Related Occupations
Bibliography
“Cost Estimators.” Occupational Outlook Handbook. Bureau of Labor Statistics, US Department of Labor, 17 Apr. 2024, www.bls.gov/ooh/business-and-financial/cost-estimators.htm. Accessed 28 Aug. 2024.