Construction Estimators: A Key Player in Australia's Building Industry
It feels like all eyes have been on Australia’s construction industry as the effects of the pandemic and supply chain interruptions continue to catch up operations and increase prices. Construction projects remain in high demand, especially in the residential sector as the housing crisis continues.
Numbers are on everyone’s mind, with risks higher than ever due to skilled labour shortages and inflation of necessary materials. Construction project managers and contractors need to find the balance between competitive pricing and covering these risks to keep their businesses profitable and projects viable.
Enter construction estimators.
What is a construction estimator?
Construction estimators are the ones who create the estimated budget for a construction project or the ones who make contract bids in a business. The largest marker for success for construction is a well-prepared budget that has considered all factors in the process. Estimators are the ones tasked with finding the balance on the actual costs of a projector crafting a competitive bid for their client.
It’s a crucial role that often flies under the radar, especially for new students or those considering the construction/trades industry, as it requires solid experience and years of work in the construction industry. It’s not exactly a career path that’s widely known or suggested, but construction estimators are the crux of a successful project.
It’s not just large businesses and firms that rely on construction estimators: construction businesses of any size will require someone to do estimates for bids and handle the numbers. That person could be you!
Client’s Estimator
A construction estimator for a small project will often be involved in the design and idea stage. This is ideal for low-level residential or commercial projects, as clients will need advice and suggestions while they develop a design that’s both quality and close to their vision.
Of course, the dream home or idea won’t always be feasible, and part of the role of a client cost estimator is communication and collaboration to create a plan that works for everyone. Managing expectations and a budget can be tricky, but these construction estimators have the benefit of understanding and developing every part of the project.
Contractor Estimator
This is the most common kind of estimator. If you run your own tradie business, this is the kind of construction estimator you might work with to find viable contracts.
They assess potential contract bids for a business to check if the project fits the kind of work the business does and if it will be viable. This means they’ll analyse what needs to be done and how much it would cost and draft contract bids to assess the viability of a bid.
Contractor estimators must ensure that the business is able to complete the scope of the work and that the bid is both competitive and profitable. Businesses might be perfectly capable of carrying out a contract, but they need to know it’s a financially healthy decision first.
Engineer Estimator
These estimators work at the design stage alongside the engineer to help create blueprints and designs that are both financially viable and meet quality standards. These construction estimators are experts in construction methods and can suggest design changes and the logistics of the current design.
Key tasks and skills in the construction estimating process
The importance of a construction estimator can’t be overstated, but what exactly goes into the role? What’s expected of a construction estimator, and what skills does this translate to?
In short, construction estimation requires strong mathematical skills, negotiation (for clients who need to rein in their expectations), strong communication and collaborative skills and a head for analytics to assess the many levels of a construction project. A construction estimator should also have excellent time management skills and the determination to not only keep up with the market, but get ahead of it.
Analyzing Project Plans and Specifications
Potential projects start with the plans, designs, and purpose of the construction. Analytical skills are key in this stage, as construction estimators will need to interpret designs and blueprints to craft their estimates and bids.
Construction estimators must review all specifications in detail and collect the data they need for their bids. They might visit the proposed job site to understand if the current design is viable, or what kind of equipment and site changes need to be made.
This stage forms the foundation for the rest of the process, so it’s essential to take the time required and get a complete picture.
Quantity takeoffs and accurate cost estimates
After reviewing the project plans pre-bid, the material takeoff outlines the required materials for a project. Estimators will need to account for all materials and their specifications, as each unit represents a capital cost in the budget.
For quantity takeoffs, estimators list all necessary items and materials for a project. If a construction estimator is working for a trade business and preparing a bid, they’ll focus on the materials relevant to the trade. For example, a construction estimator working for a bricklaying business won’t include the cost of wiring or piping in their estimates.
Materials will be described in units relevant to their type, and this affects calculations.
Construction estimators need to produce an accurate cost estimate for the materials. For this, estimators require robust mathematics skills and knowledge of the current markets. The most successful estimates will also account for possible future fluctuations and changes in the supply market.
With a list in hand, construction estimators must calculate an accurate cost for each material.
For example:
- Count: items that are singular and can be counted as individual units, such as studs, light fixtures, doors and windows.
- Area: materials that are calculated based on square metres, such as flooring, drywall and roofing.
- Volume: materials calculated by cubic metres, such as concrete, gravel and sand.
- Length: materials that are calculated by linear metres, such as wiring, ductwork and lumber.
And materials aren’t the only costs to consider. Accurate cost estimation covers all the costs that are required to complete a project.
These include:
- Insurance
- Permits
- Management Software
- Site Facilities
- Equipment Hire and Maintenance
As you can see, construction estimators need to understand the process inside and out to create accurate estimations.
Importance of precision in the estimation process
Budgets can make or break a project and affect the financial health of a business, and the last thing a budget needs is an unexpected or surprise expense or delay. Construction estimators need to be experts in their field and understand every aspect of a project.
For example, analysing a construction project means project viability is up for scrutiny as well. Sometimes stakeholders or designers will want the project to be a certain way or utilise a particular material, but in reality, it might not be feasible for the site or the current supply market.
Every part of the construction project process must be considered to produce an accurate construction estimation and ensure project viability. Construction estimators also need to have their eye on the markets and supply-demand fluctuations.
For takeoffs, lack of precision or forgotten points can have disastrous effects. Missing materials cause delays and expensive, last-minute purchases and delivery. Sometimes, the materials could be unavailable and cause delays or require re-assessment of the design.
And if there’s a job that needs doing, but no tradies to do it? Nightmare!
Educational qualifications and certifications
Becoming a construction estimator carries lots of responsibility. We’re not trying to scare anyone off the role, just to make it clear! Estimating is demanding, and each project or contract bid represents a challenge to solve.
Many estimators have come through the industry with years of experience under their belt. Others specialise in one particular trade and have enough knowledge of the sector to be the perfect fit for construction estimation.
There are many pathways to becoming a construction estimator. If you’re already working in the trades and think construction estimation is the next step in your career, or you’re a student looking to the future, there are study options available to prepare you for construction estimation.
If you’re new to the trades, it will be difficult to become a construction manager without insight and experience in the industry. You may need a certificate/training in building and construction or another relevant trade before you’re able to become a construction estimator.
Diploma in Building and Construction Management
This diploma is designed for tradies and employees in the construction industry who want to take the next step into estimation and management. It’s a great option for already-skilled tradies wanting to develop their skills.
Key learning includes:
- Building codes and standards
- Building and Construction Contracts
- Project Management/Project Planning
- Site Management and Supervision
- Environmental Management
This diploma is designed for low-level residential and commercial projects, so it can be an excellent entry point for those new to construction estimation and wanting to upskill.
Certificate IV in Building Project Support
This is another option for estimator hopefuls. Based on electives, there are two outcomes: Contract Administrator and Estimator. This certificate is designed to prepare students for a variety of projects and offers a selection of elective subjects to enhance their skills
Key Learning includes:
- Read and Interpret Building Plans
- Tender Preparation
- Prepare and Administer Construction Contracts
- Building and Construction Estimation
- Building Codes and Standards
- Legal Requirements for Projects
- Management and Procurement of Building Materials
- Waste Minimisation
This Cert IV is designed to be more flexible and offer more options than the diploma, but it depends on the study options available and what you want out of your learning.
Salary range
So, now that we’ve covered the many tasks and skills of a construction estimator, what does the compensation look like? It’s important to know the salary ranges, especially for the kind of responsibility and involvement that construction estimation demands!
For example, we’ll take a few roles and cover their salary ranges
Construction Estimator
Average Salary Range: $70k - $113k per year
This is around the average for regular construction estimator roles. The averages account for low-level residential or contractor client work, as many estimators gain experience and knowledge about different projects. The higher the salary, the more demand and the specialisation skills of a construction estimator.
Senior Construction Estimator
Average Salary Range: $98k - $180k
Experience and success come with a premium, and senior construction estimators can negotiate higher salaries. Smart businesses know construction estimation is an investment, so why not get an expert? For this kind of salary, an estimator needs a wealth of experience and proven success in the field.
The Evolving Role of Construction Estimators
As Australia’s demand for construction grows, the demand for skilled workers and specialisations grows with it. This is especially true of construction estimators, as projects and clients rely on an accurate budget to make their projects a reality. Supply chain disruptions and rising costs have made expert construction estimators and estimation tools more vital than ever before.
Are you considering the construction industry or want to take your business estimating to the next level? Try AroFlo’s construction software to make the most of job management, streamlining everything from takeoffs to supplier communication and timely quotes and estimates.
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