When a business launches a new product or service, each part of the project has its own costs. Whether it’s the raw materials to create new products or internal software for the team, someone needs to oversee exactly how much everything costs.
That someone is a cost estimator. If you have a knack for numbers and statistics, this role can become a lucrative career that makes use of your mathematical and analytical skills while helping businesses grow.
Cost estimators collect and analyze information about the time, money, and resources needed to complete specific projects. Cost estimators use the financial data they gather to predict the necessary budget for a new product or service. They then provide recommendations on final product pricing to achieve the greatest return-on-investment (ROI). Cost estimators are most common in construction and manufacturing.
The information that cost estimators collect when working directly with suppliers helps senior executives bid and negotiate the best prices for their materials and resources. They play an essential role in budget creation and management for individual projects using cost estimation software, giving teams the data needed to determine whether their work is financially feasible.
Any new project sounds like a good idea until you start working out the financials. There’s a reason that 54% of manufacturing projects end up costing more than originally projected. Without accurate estimates, budgets can easily get out of hand.
Working with a cost estimator keeps projects on schedule and on budget. The estimates come with a number of benefits, including:
There’s no one right way to become a cost estimator. Before heading off to college, it’s a good idea to think about the industry you’d like to work in first, as this can help you determine the type of degree you want to get.
For those interested in working in construction, Bachelor’s degrees in majors like construction science, engineering, or construction management can all be a great starting point. However, manufacturing companies also look for majors in business-related fields such as accounting, finance, economics, and mathematics, as well as some courses in physical sciences.
The goal of your degree should be to provide you with some of the critical skills that you can take into your first professional experiences as a cost estimator. Practical skills like mathematics and analytics are essential, but so are “soft skills” like communication, attention to detail, and critical thinking.
It is possible to work as a cost estimator without a degree, but working your way up from an entry-level position takes longer. Having experience in the construction industry in particular, can be a good alternative to traditional education. But without extensive work experience or a relevant degree, it’s more difficult to find work in this field. Typically, those who become cost estimators without a degree are transitioning into this work from a similar industry with many years of practical experience behind them.
The industry you’re working in usually determines the type of job you end up with as a cost estimator. Some of the most common ones are:
The industry you choose to work in and the level you aspire to reach determine the salary that you can expect to make as a cost estimator. The average salary nationwide in 2022 was $71,200.
As a cost estimator, you rely heavily on technology to keep track of your estimates and make accurate forecasts for each project. Using specialized cost estimating software, like those for the construction industry, is one of the best ways to do this.
To be included in the construction cost estimating category, platforms must:
* Below are the top five leading construction estimating software solutions from G2’s Winter 2024 Grid Report. Some reviews may be edited for clarity.
Procore construction software helps teams manage projects, resources, and finances related to construction projects. This tool connects project contributors to technology solutions built specifically for construction industry professionals, like the owner, the general contractor, and the specialty contractor.
“The features, updates, and new features constantly being added, and how well it works without constant issues are what sets Procore apart from other softwares. Once set up, it is user-friendly and just an all around easy way to keep track of your projects from start to finish. Also, the ability to collaborate with architects/owners/subs is extremely helpful and included in the cost.”
- Procore Review, Christina H.
“You can't bulk edit status. I think it would be helpful to have a bar chart on observations and the ability to assign it to more than one person.”
- Procore Review, Jason H.
Autodesk Construction Cloud connects teams with data and workflows across all areas of each construction project to minimize risk, improve efficiency, and increase profit margins. Autodesk gives users a broad set of field execution and project management tools in a single software platform that is easy to deploy, adopt, and use.
“Autodesk is continuously adding new features to help improve productivity and communication on projects. The design collaboration module is a fantastic tool for project managers to review the design during the project without requiring prior knowledge.”
- Autodesk Review, Rick H.
“Their account and project administration is quite complex. I have to go through many options to just create my project and set it up along with assigning roles, and the weird thing is that I have to assign myself roles for every product I use under Construction Cloud, like Docs, Build, etc.”
- Autodesk Review, Aashrut V.
Trimble Accubid Classic allows contractors to assemble and manage bids, helping them put together comprehensive databases of materials and labor costs. This tool offers a comprehensive material and labor database of over 40,000 items.
“It is very easy to add items and assemblies that fit our needs. I have been adding to and modifying our database for 18 years and I am still not using 50% of its capacity. I also like the integration with Live Count that has allowed my estimating department to go completely paperless. No more plans cluttering up the workspace.”
- Trimble Accubid Classic Review, Randy M.
“The user interface can be unforgiving. Many features could be entirely unknown without extraordinary training. Discoverability and features need a great overhaul to meet the standards that a more tech savvy generation has come to expect.”
- Trimble Accubid Classic Review, Garrett G.
As a project management and cost platform, Knowify is built specifically for trade contractors to keep projects, teams, and finances efficiently organized. It makes it easy for users to track projects and invoice clients in one place.
“It offers many features to stay organized with invoicing, bills, scheduling, and many other things contractors need to be on top of to remain profitable. This will change how your contracting business is run, and you will find yourself using the software daily.”
- Knowify Review, Cristian B.
“From the accounting side (and being a company in California) one of my biggest complaints is sales tax tracking. I know this is not an issue for every company or every industry.”
- Knowify Review, Casey B.
PlanSwift is a top takeoff and estimating software that lets estimators improve their accuracy for any project. It’s an easy-to-use visual point-and-click interface, so that users can measure linears, unit counts, square footage, pitches, and angles in seconds with one click.
“The main thing I like about it is there are tons of added plug-ins that are trade-specific. This helps streamline the takeoff process if there is a specific style a company would normally perform.”
- PlanSwift Review, Ashley B.
“Learning curve on this software is long. Also, collaboration between users can be a pain. I would need to email my file to another user and sometimes the files would be sent missing items or not even sent. The cost per user is also a little steep.”
- PlanSwift Review, Jaime R.
The role of a cost estimator is one of the most important in a range of industries. It’s a big responsibility. After all, it’s on you to decide whether a project is financially viable or not. But for analytical individuals with an eye for numbers, this can be a great career choice.
Learn the ropes of construction and manufacturing project management with manufacturing intelligence software that helps you gather and analyze data from multiple sources.
Holly Landis is a freelance writer for G2. She also specializes in being a digital marketing consultant, focusing in on-page SEO, copy, and content writing. She works with SMEs and creative businesses that want to be more intentional with their digital strategies and grow organically on channels they own. As a Brit now living in the USA, you'll usually find her drinking copious amounts of tea in her cherished Anne Boleyn mug while watching endless reruns of Parks and Rec.
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