The role of the estimator

The role of the estimator in building and construction projects of all sizes is crucial, as it helps form the all-important budget. Building estimators primarily prepare cost estimates and building expenses, but may also be responsible for negotiating prices with any subbies and suppliers.

The estimator can be a defining factor in whether or not the project is a success or a failure. They have in-depth knowledge of materials, construction requirements, building methodologies, market prices, and regulatory standards. They take most of the spotlight during the preconstruction process and can help make sure businesses are profitable and able to win new work.

What is the role of an estimator in construction?

Building estimators prepare estimates for various costs involved in the completion of a construction project. Interestingly, there are only about 7000 building estimators in Australia, servicing the entire construction industry, and they handle the following tasks:

• Assessing engineering and architectural specifications to specify construction costs
• Creating the Bill of Quantities, which lists everything a project needs to be completed successfully
• Dealing with contractor relationships and payment amounts
• Running feasibility studies to understand the value of a project
• Preparing tax depreciation schedules
• Creating monthly cash-flow forecasts

Understanding how much a project will cost, or how much it will cost to complete required works, makes building estimators valuable to both sides of the construction relationship.

Project owners rely on contractor estimates of project costs to determine their profit margins. Building estimators help construction firms and subbies ensure their bids are accurate, which in turn helps them win business and turn a profit.

What skills does a building estimator need?

Estimators need to be skilled across a range of functions to ensure accurate bidding. It may sound like a building estimator is just a number-cruncher; however, that is just a small part of the role. Estimators are vital for business development. Firms need accurate estimates when creating competitive bids to win business. Accuracy avoids overpromising and underdelivering.

Skills required include:

• Knowledge of material costs (a highly fluctuating area)
• An understanding of overhead costs
• Good relationship-building skills for dealings with vendors and trade partners
• Analysis skills for drawings and specifications
• The ability to create contingency plans

What is the average salary of an estimator?

Building estimators in Australia earn between $90k and $100k on average, though this can vary based on where they work. For example, building estimators in Sydney lead the country with average salaries of approximately $125k, and regional spots like far north Queensland and the Mackay/Coalfields see wages of $110k and $95k respectively, thanks to the mining and resources construction activity.

Senior estimators with proven track records can sometimes earn up to $150k, with peak compensation hitting the $200k mark for those with significant experience managing major projects or large teams.

How do you become a building estimator in Australia?

There are two main pathways to becoming a building estimator in Australia: apprenticeships and study. Although only 12–17% of estimators in Australia are female, the role can be suitable for anyone interested in the building and construction industry, and it can often lead to roles such as construction, project or estimating manager. Female workers in the industry speak positively about how inclusive the construction sector can be, making it a worthwhile career consideration for all.

If you opt for the practical experience pathway, this can often be done via a relevant apprenticeship with a registered practitioner. This provides hands-on, practical experience and is often coupled with study via a registered training organisation through the employer. Apprenticeships often end with a Certificate III plus the benefit of extensive experience (and relationships) in the industry.

If you decide to complete a formal degree or diploma in building and construction management, you’ll enter the workforce with extensive knowledge and qualifications, but the lack of experience in the field may hinder your ability to acquire a position.

What are the different types of estimators?

There are three main types of building estimators; however, depending on the role and company, some or all of the tasks can be bundled into one main role:

Client’s cost estimator

Property owners who specialise in smaller projects like residential homes will often have a client cost estimator whose main focus is to manage client expectations. They will be responsible for controlling budgets, negotiating costs, and finalising contracts.

Contractor’s cost estimator

Construction contractors use estimators to evaluate the scope, feasibility, and profitability of their projects. These estimators will prepare competitive contract bids and ensure the contractor can complete the work profitably within deadlines. Understanding which projects are worth bidding for based on capability and profit potential is crucial, and estimators can help mitigate risk here.

Engineer’s cost estimator

Engineers will often use an estimator during the design phase to create plans or suggest alternative construction methods or materials when original designs aren’t feasible. They will take into account factors like project location and logistics for getting materials to the construction site.

Specialty estimators

Estimators can sometimes be categorised by specialisation: general estimators work across all project types, while specialty estimators focus on specific trades such as mechanical, electrical, plumbing, or structural work.

When are estimators engaged during a project?

The type of project and its status often determine when an estimator is engaged. You may think that since such a big part of the role is estimating, the work is often done in the front end of a project; however, that isn’t always the case.

As experts in the tender bidding process, E1 is a popular platform for estimators, so we’ll use the bidding process to exemplify how they can be necessary through multiple project stages:

• Pre-bid

Estimators must keep up with indexes, material pricing and other data tracking to ensure they are ready for the bids when they arrive. They will keep in touch with trade partners to maintain relationships and arm themselves with various information so it can be accessed quickly when the need to cost a job occurs. 

• During the bid

The primary workload for an estimator takes place during the bid. This is when they will review drawings and specifications, visit the site (if possible), and gather various details to estimate project costs accurately. Creating the estimate often means assessing the granular details of the scope of work and quantifying the materials required. Other considerations can include insurance, permits, equipment depreciation, and more.

• Post-bid

After submission, the bid’s success determines whether it’s back to the drawing board to improve the chance of winning future work (unsuccessful) or handling change requests and adjustments for new projects (successful). 

What challenges do building estimators face?

Estimating is deadline-driven and can therefore be a stressful role at times. Estimators often rely on information from others and are spread across analytics and relationship maintenance with little room for error.

Estimators can also feel responsible for the success of their business as they play such a big part in winning new work. As predictions are such a big part of the role, it can be difficult to look into the future to calculate costs for jobs that may take years to complete.

Making life easier for estimators

E1 makes the tendering process much simpler, helping estimators by lessening the manual work of preparing a bid. Our automated addenda management ensures you are always working from the right set of documents, and we provide real-time data to guarantee fewer headaches and better subcontractor decisions. Learn more about how E1 makes tendering smoother today.