Online Degrees

Cost Estimator Careers

The average value of the Bachelor degree needed to become a Cost estimators is $1,312,046.00.

Points of Interest

• When taking into consideration all of the cost estimators that are employed, there are approximately 59 percent of them that are working in the construction industry, while another 15 percent are working for manufacturers. 
• In the cost estimator industry, there are positive job opportunities predicted for the future; employees that have a bachelor's degree in a related field along with the sufficient experience working in the industry are thought to have the best opportunities available for work. 
• Although not always mandatory or required by companies hiring a cost estimator, employees have the option to become certified voluntarily, being an extremely beneficial choice to make. However, there are certain employers that may make it mandatory to have professional certification if choosing to become employed with their company or organization. 

Nature of the Work

The nature of work of a cost estimator basically involves figuring out how much a project or product will cost. Business owners along with managers look for cost estimators to follow through in helping them decide whether or not to build a structure or manufacture a product. To further benefit clients and themselves, cost estimators also look into finding out which jobs are making a profit. The way that cost estimators follow through with their method of figuring out the costs varies and also depends on the industry in which they are working. Cost estimators study information on all of the things that can change the total cost of the project they are working on. The things they look at would include supplies, labor, location, and other special equipment, like computer hardware and software.

When cost estimators are working in the construction industry, they look at the drawings available and visit the site of the project. From there, they can work out the numbers and measurements to determine the amount of materials and number of construction workers the project will intake. They will also take into consideration the costs of things like unused materials, delays or interruptions due to bad weather, and any shipping postponements. Cost estimators let the architect, construction manager, or owner know if they think the project they are looking into will be a profitable one or not; to make it easier for their client, they also write their findings in a customized and detailed report. When working with larger companies, they may specialize in certain aspects of the project. For example, one cost estimator may estimate only electrical work and another cost estimator may focus on the concrete portion of the project.

Being able to provide an accurate estimate or forecast of the work, cost, size, and duration of future projects are extremely fundamental to the endurance or survival of any business. Cost estimators build up the cost information that business owners and managers require to make a bid for a contract or to decide on the profitability of a proposed new project or product. They also aid in the process of determining which actions are making a profit to benefit the company. In spite of the industry in which they work, cost estimators bring together and evaluate data on all of the factors that can have an effect on costs (e.g. materials, labor, location, duration of the project, and special machinery requirements, including computer hardware and software). Job duties vary widely depending on the type and size of the project.

The way in which a cost estimator follows through in estimating the costs can also differ to a great extent by the industry they are working for. When dealing with a large construction project, for example, the estimation process begins with the pronouncement of submitting a bid. After going through various preliminary drawings and provisions, the cost estimator then visits the location of the proposed development. The cost estimator then gathers information on access to the site; surface landscape and drainage, and the availability of electricity, water, along with other services. The cost estimator will then record that information, and may possibly be placed into the final project estimate.

Once the site visit has been accomplished, the cost estimator will begin to establish the quantity of materials and the labor required to complete the firm’s part of the project. This process, also referred to as the quantity survey or “takeoff,” involves completing standard estimating forms, filling in dimensions, numbers of units, along with other necessary information. A cost estimator that is working for a general contractor, for example, will follow through with the estimates of the costs of all of the items that the contractor must provide to the client.

Even though subcontractors approximately calculate their costs as part of their own bidding process, the cost estimator working with the general contractor often analyzes the bids made by subcontractors. In addition, during the takeoff development, the cost estimator must make decisions concerning equipment needs, the sequence of operations, the size of the crew required, and physical restrictions at the site. Something that also must be taken into consideration by a cost estimator when putting together an estimate would include allowances for wasted materials, inclement weather, shipping delays, and other factors that may increase the total cost of the project.

Following the completion of the quantity surveys, a cost estimator then prepares a cost summary for the entire project, which would include the costs of labor, equipment, materials, subcontractors, overhead, taxes, insurance, markup, and any additional costs that may have an affect on the completion of the project. The cost estimator in charge will then prepare the bid offer for submission to the owner. When working on large construction projects, there may be several cost estimators assigned to each specialize in one area, such as electrical work or excavation, concrete, or forms.

Cost estimators working for a construction project may also be employed by the project's architect, engineering firm, or owner to help institute a budget, manage and control project costs, and to follow through with the actual costs relative to the bid stipulations as the project continues. During the actual construction process, cost estimators may be assigned to manage the cost of change orders and to bargain for and settle any extra costs or moderate any impending claims. Cost estimators may also be called upon as the expert witness in court when dealing with the costs involved in a construction dispute case.

Cost estimators working in the manufacturing industry are more often than not assigned to the engineering, cost, or pricing department. The goal of the assigned cost estimator is to properly and professionally estimate the costs connected with developing and producing products. The work for an estimator may begin when a company’s management team requests an estimate of the costs associated with a major redesign of an existing product or the development of a new product or production process. For instance, when estimating the cost of manufacturing a new product, the cost estimator collaborates with engineers in first reviewing blueprints or conceptual drawings to determine the machining operations, tools, gauges, and materials that will be required to complete the job. The cost estimator then proceeds to organize a parts list in order to determine if it would be an efficient choice to either produce or to purchase the parts necessary. In order for this to follow through, the cost estimator asks for price information from prospective suppliers. The step that would follow would be to determine the cost involved in manufacturing each one of the components of the product. Certain high-technology products need to have an extremely large amount of computer programming during the design phase. The cost involved with software development is one of the fastest growing and most difficult activities to provide and estimate. Because of this, there are cost estimators who are known to now specialize in estimating only computer software development and its related costs.

A cost estimator would then proceed to be in charge of preparing time-phase charts and the learning curves. Time-phase charts are use to point out the time required for tool design and fabrication, tool “debugging” (locating along with fixing any of the problems), manufacturing of parts, assembly, and testing. Learning curves serve as visual aids used to be a symbol of the rate at which the performance of workers producing parts for the new product would improve with practice. The learning curves are commonly referred to as “cost reduction” curves, considering that many problems (such as engineering changes, rework, shortages of parts, and lack of operator skills) begin to arise as the number of units produced amplify, resulting in lower unit costs.

After gathering all of the necessary information, the cost estimator then begins to calculate the typical labor hours needed to produce the specified number of units. The typical labor hours are then transformed to dollar values, and then joined with the added factors for waste, overhead, and profit to yield the unit cost in dollars. The cost estimator puts side by side the costs of purchasing parts with the firm's estimated cost of manufacturing them to establish which would be the more economical solution, and making the work more profitable for the company.

The profession of being a cost estimator entails using computers very frequently in order to do all of the necessary paperwork. Using computers facilitates things and allows them more time to study and analyze potential projects or products. Not only do they facilitate things more, but computers simply play a vital role in cost estimation considering the process often involves complex mathematical calculations and requires advanced mathematical techniques. For instance, in order to embark on a parametric analysis (a process used to approximate costs per unit based on square footage or other specific requirements of a project), a cost estimator can use a computer database containing information on the costs and conditions of many other similar projects. Even though it is not possible for computers to be used for the entire approximation process, they can relieve cost estimators of much of the slog and time consuming process associated with routine, repetitive, and lengthy calculations; this takes away time that can be used more efficiently toward completing other necessary work. There is new and improved cost estimating software that has resulted and has lead to more efficient computations, allowing cost estimators more time to visit and analyze their assigned projects.

The work of a cost estimator is also done among other professions; operations research, production control, cost, and price analysts who work for government agencies may also do significant amounts of cost estimating along with the work of their usual duties. The work needed to be done by many construction managers may also include cost estimations.

When pertaining to they type of work environment of a cost estimator, they tend to spend most of their time in office settings, even though visits to construction worksites and factory floors are often needed for their work. In certain industries, there may be everyday travel involved for a cost estimator between a firm's headquarters, its subsidiaries, and subcontractors. Although the majority of cost estimators spend most of their time in an office, there may be some who more frequently visit project worksites. The different worksite can be dusty, dirty, and sometimes unsafe for cost estimators. For example, in the manufacturing industry, a cost estimator may spend time on the factory floor which can be noisy and dirty.

Cost estimators usually work a regular 40 hour week, although overtime is common in order to meet certain deadlines or make up for any time lost along the process. It is highly agreed upon by most that cost estimators often work under a great deal of pressure and stress, especially when having to meet the bid deadlines. Any sort of erroneous estimating can cause a firm to lose a bid or to lose money on a job that was not accurately estimated.

Training, Other Qualifications, and Advancement

Depending on the industry that a cost estimator is working for, the job entry requirements will vary. When working in the construction and manufacturing industries, employers increasingly prefer to hire cost estimators with a bachelor's degree in a related field, even though it is not always mandatory and it is also possible for experienced construction workers to successfully become cost estimators. Voluntary certification is a decision made by many cost estimators and can be extremely beneficial for their work; some employers, including the Federal Government, may make it mandatory to obtain professional certification for employment.

When discussing any education and training, in the construction industry, employers increasingly prefer individuals with a degree in construction management, building science, or construction science, all of which usually include several courses in cost estimating. The majority of construction cost estimators also have considerable construction experience, acquired through their work in the industry, internships, or cooperative education programs. For some cost estimators, years of experience can be used as a convenient substitute for a degree in addition to taking classes in the field or getting an associate degree. Prospective cost estimators 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 against other applicants trying to thrive in that profession. When aiming to work in any manufacturing industries, the majority of employers prefer to hire individuals with a degree in engineering, physical science, operations research, mathematics, or statistics or in accounting, finance, business, economics, or a related subject. In most industries requiring higher educational learning, experience in quantitative techniques is very important.

There are any colleges and universities that include cost estimating as part of a bachelor's and associate degree curriculum in civil engineering, industrial engineering, information systems development, and construction management or construction engineering technology. Additionally, a cost estimating study is often part of many master's degree programs in construction science or construction management. Organizations that represent cost estimators, such as the American Society of Professional Estimators (ASPE), the Association for the Advancement of Cost Engineering (AACE International) and the Society of Cost Estimating and Analysis (SCEA), also support educational and professional development programs. The previously mentioned programs are of assistance to students, cost estimators in training, and even experienced cost estimators in learning about changes affecting their profession. Specialized courses and programs in cost estimating techniques and procedures are also accessible by many technical schools, community colleges, and universities.

Cost estimators also receive long-term training on the job considering that every company has its own unique way of arriving at estimates. There are many benefits in working with an experienced cost estimator allowing entry level cost estimators to become familiar with each step in the process. Entrants with no experience reading construction specifications or blueprints tend to initially learn that aspect of the work before all else. Consequently, new entrants are also known to accompany an experienced cost estimator to the construction site or shop floor, where they can observe the work being done, take measurements, or perform other routine tasks as part of their introduction for their new position. As they become more experienced and knowledgeable, cost estimators learn how to tabularize quantities and dimensions from drawings and they learn how to select the suitable prices for materials.

When considering other qualifications, it is necessary for cost estimators to have a strong capacity for mathematics, and must be able to analyze, compare, and interpret detailed and often times poorly defined information, and still be able to make sound and accurate judgments based on their given information. A cost estimator’s ability to focus on details, while analyzing and managing larger obstacles, is of the essence. Personal traits of assertiveness and self-assurance in presenting and supporting conclusions are also important, as are strong communications and interpersonal skills, considering that cost estimators may work as part of a team alongside managers, owners, engineers, and design professionals. It is also fundamental that cost estimators be skilled in working with computers and that they have the necessary skills in programming. A cost estimator’s familiarity with cost estimation software, including commercial, and Building Information Modeling (BIM) software is also beneficial. BIM software technology takes typical blueprints to then create three dimensional models on the computer; which allows for better estimates of the building process. Adeptness in project management and the ability to incorporate work breakdown structure (WBS) techniques are progressively more important in cost estimating complex development projects.

Moving on to the certification and advancement of a cost estimator, it must be noted that voluntary certification can be advantageous to cost estimators since it provides professional recognition of their work competence and experience. There are a growing number of instances in which an individual’s employers may make it mandatory to have professional certification for employment. Offering assistance, the ASPE, AACE International, and SCEA administer certification programs to those interested. In order to become certified, cost estimators usually must have between 2 to 8 years of cost estimating experience and should pass a written examination. Additionally, there are certification requirements that may include having the publication of at least one article or paper in the field.

For the majority of cost estimators, progressing in their field means adapting to the much sought after form of higher pay and prestige. There are many cost estimators that move into management positions, such as project manager for a construction firm, program manager for a government contractor, or manager of the industrial engineering department for a manufacturer. Other employees may go into business for themselves as consultants, providing estimating services for a fee to government or to construction or manufacturing firms, allowing them the added prestige of being their own boss.

Employment 

In 2008, cost estimators held approximately 217,800 jobs in total. While 15 percent of cost estimators were employed in the manufacturing industry, approximately 59 percent of them were employed in the construction industry. The remainder percentage of cost estimators was employed by a variety of other industries. Cost estimators are employed throughout the country, more often than not in or near major industrial, commercial, and government centers and also in cities and suburban areas experiencing rapid change or development.

Job Outlook 

The prediction when looking at the employment of cost estimators in the future is projected to grow much faster than average. Taken as a whole, great job opportunities are predictable; those interested in becoming cost estimators with industry work experience and a bachelor's degree in a related field will have the best options to choose from when applying for their ideal positions.

Considering the employment change for cost estimators, it is expected to grow by 25 percent between 2008 and 2018, much faster than average for all occupations. Expansion in the construction industry is considered a large make-up of most new jobs predicted to be available for prospects entering this occupation. In general, construction and repair of highways, streets, bridges, subway systems, airports, water and sewage systems, and electric power plants and transmission lines will fuel the need for more cost estimators. Correspondingly, the increase in population will also result in more needed construction of residential homes, hospitals, schools, restaurants, and other structures that will require the work of many cost estimators. As the human population ages, the demand for nursing and extended-care facilities will also increase; needing further cost estimators for those jobs. The growing complication of construction projects will also boost demand for cost estimators as more workers specialize in specific areas of construction, as opposed to have one cost estimator assigned to complete all those tasks.

When looking at job prospects and considering that there are no official bachelor's degree programs in cost estimating, many employers find it difficult to recruit qualified cost estimators, resulting in having more available employment opportunities open for prospective employees. Job prospects in construction would be best suited for those who have a degree in construction science, construction management, or building science or have years of practical experience in the various phases of construction or in a specialty craft area. Having added knowledge of Building Information Modeling software would also be advantageous. Considering the cost estimating jobs available in manufacturing, individuals who have degrees in mathematics, statistics, engineering, accounting, business administration, or economics, and who are familiar with cost estimation software should have the best job prospects available to them.

Aside from the multitude of job openings arising from population and employment growth, many additional openings should also result. Considering that the work of a cost estimator can be extremely stressful and time consuming, there is an annual need to replace workers who choose to transfer to other occupations to avoid dealing with the stresses and there are also many cost estimators who simply need to retire or leave the occupation for a variety of other reasons. Just as many other construction workers, a cost estimator’s employment is sensitive to the fluctuations of the economy and the need and capability for companies to use their line of work. Employees working in these trades may experience periods of unemployment when the overall level of construction falls. To the contrary, and possibly a benefit to those seeking a job, shortages of these workers may occur in some areas during peak periods of building activity; this could result in an extra benefit or much needed overtime for many employees. Projections

The projections data from the National Employment Matrix shows that the employment of cost estimators in 2008 was at 217,800 and is projected to become 272,900 in the year 2018; showing a change of 55,200 with a percentage change of 25% for those 10 years. 

Earnings 

Considering the numerous industries that cost estimators are working for, along with the experience, education and the size of a firm, a cost estimator’s salary can vary greatly. The median annual wages of wage and salary cost estimators in May 2008 were $56,510 a year. The middle 50 percent of cost estimators earned between $42,720 and $74,320 a year. The lowest 10 percent earned less than $33,150 a year, and the highest 10 percent earned more than $94,470 per year. The median annual wages in the industries employing the largest amount of cost estimators were annually reflected as being:

• Nonresidential building construction - $65,410 
• Building equipment contractors - $60,510 
• Building finishing contractors - $55,430 
• Residential building construction - $55,390 
• Foundation, structure, and building exterior contractors - $54,670

Wages

An estimate and the average (mean) wage estimates for the cost estimator profession:

• Employment: 197,330 
• Employment RSE 0.8% 
• Mean hourly wage: $29.42 
• Mean annual wage: $61,190 
• Wage RSE: 0.3%

The percentile wage estimates for cost estimators are as follows:

• 10% of workers: earned $16.14 an hour; with an annual wage of $33, 560 
• 25% of workers: earned $20.86 an hour; with an annual wage of $43,390 
• 50% (median) of workers: earned $27.55 an hour; with an annual wage of $57,300 
• 75% of workers: earned $36.06 an hour; with an annual wage of $75,000 
• 90% of workers: earned $45.76 an hour; with an annual wage of $95,190

Related Occupations 

Other occupations that follow along in accomplishing similar work to that of a cost estimator include, but are not limited to the following:

• Accountants and auditors 
• Budget analysts 
• Claims adjusters, appraisers, examiners, and investigators 
• Construction managers 
• Economists 
• Financial analysts 
• Financial managers  
• Industrial production managers 
• Insurance underwriters 
• Loan officers 
• Market and survey researchers 
• Operations research analysts 
• Personal financial advisors 

Sources of Additional Information

For those individuals that are interested in choosing to take the next step and pursue a career as a cost estimator, further information about career opportunities, certification, educational programs, and cost-estimating techniques may be obtained by contacting or clicking on the following links: - AACE International, 209 Prairie Ave., Suite 100, Morgantown, WV 26501. Internet: http://www.aacei.org

• American Society of Professional Estimators (ASPE), 2525 Perimeter Place Drive, Suite 103, Nashville, TN 37214. Internet: http://www.aspenational.org 
• Society of Cost Estimating and Analysis, 527 Maple Ave. East, Suite 301, Vienna, VA 22180. Internet: http://www.sceaonline.org

Related Jobs

People with the educational background, skills, and desire to become a Cost estimators might be well suited to work in one of the following fields as well:

• Accountants and auditors
• Tax examiners, collectors, and revenue agents
• Financial examiners