Cost Estimators

Cost estimators often collaborate with engineers.

Cost estimators collect and analyze data in order to estimate the time, money, materials, and labor required to manufacture a product, construct a building, or provide a service. They generally specialize in a particular product or industry.

Duties

Cost estimators typically do the following:

• Identify factors affecting costs, such as production time, materials, and labor
• Read blueprints and technical documents in order to prepare estimates
• Collaborate with engineers, architects, clients, and contractors
• Calculate, analyze, and adjust estimates
• Recommend ways to reduce costs
• Work with sales teams to prepare estimates and bids for clients
• Maintain records of estimated and actual costs

Accurately estimating the costs of construction and manufacturing projects is vital to the survival of businesses. Cost estimators provide managers with the information they need in order to submit competitive contract bids or price products appropriately.

Estimators analyze production processes to determine how much time, money, and labor a project needs. Their estimates account for many factors, including allowances for wasted material, bad weather, shipping delays, and other variables that can increase costs and lower profits.

In building construction, cost estimators use software to simulate the construction process and evaluate the costs of design choices. They often consult databases and their own records to compare the costs of similar projects.

The following are examples of types of cost estimators:

Construction cost estimators prepare estimates for buildings, roads, and other construction projects. They may calculate the total cost of building a bridge or commercial shopping center, or they may calculate the cost of just one component, such as the foundation. They identify costs of elements such as raw materials and labor, and they may set a timeline for how long they expect the project to take. Although many work directly for construction firms, some work for contractors and engineering firms.

Manufacturing cost estimators calculate the costs of developing, producing, or redesigning a company’s goods or services. For example, a cost estimator working for a home appliance manufacturer may determine a new dishwasher’s production costs, allowing managers to make production decisions.

Other workers, such as operations research analysts and construction managers, may also estimate costs in the course of their usual duties.

Cost estimators may visit construction sites to gather information.

Cost estimators held about 199,400 jobs in 2020. The largest employers of cost estimators were as follows:

Cost estimators work mostly in offices, and some estimators visit construction sites and factory assembly lines during the course of their work.

Work Schedules

Most cost estimators work full time and some work more than 40 hours per week.

Cost estimators learn to use specialized cost estimating software.

Most cost estimators need a bachelor’s degree, although some workers with several years of experience in construction may qualify without a bachelor’s degree.

Education

Employers generally prefer candidates who have a bachelor’s degree.

Construction cost estimators typically need a bachelor's degree in a related field, such as construction or engineering. Manufacturing cost estimators typically need a degree in business or finance.

Training

Most cost estimators receive on-the-job training, which may include instruction in cost estimation techniques and software, as well as industry-specific software, such as building information modeling (BIM) and computer-aided design (CAD) software.

Work Experience in a Related Occupation

Some employers prefer that construction cost estimators, particularly those without a bachelor’s degree, have previous work experience in the construction industry. Some construction cost estimators become qualified solely through extensive work experience.

Important Qualities

Analytical skills. Cost estimators consider and evaluate different construction and manufacturing methods and options to determine the most cost-effective solution that meets the required specifications.

Communication skills. Cost estimators write comprehensive reports, which often help managers make production decisions.

Detail oriented. Cost estimators must pay attention to details because minor changes can greatly affect the overall cost of a project or product.

Math skills. Cost estimators calculate labor, material, and equipment cost estimates for construction projects. They use software, such as spreadsheets and databases, and they need excellent math skills to calculate these estimates accurately.

Time-management skills. Cost estimators often work on fixed deadlines, so they must plan in advance and work efficiently.

The median annual wage for cost estimators was $66,610 in May 2020. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $40,380, and the highest 10 percent earned more than $114,360.

In May 2020, the median annual wages for cost estimators in the top industries in which they worked were as follows:

Most cost estimators work full time and some work more than 40 hours per week.

Employment of cost estimators is projected to show little or no change from 2020 to 2030.

Despite limited employment growth, about 17,800 openings for cost estimators are projected each year, on average, over the decade. Most of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

Employment

There will continue to be some demand for cost estimators because companies need accurate cost projections to ensure that their products and services are profitable.

However, cost estimation software is improving the productivity of these workers, requiring fewer estimators to do the same amount of work. This will limit employment demand for cost estimators.

For more information about cost estimators, visit

American Society of Professional Estimators

Association for the Advancement of Cost Engineering International (AACE International)

International Cost Estimating and Analysis Association

O*NET

Cost Estimators