Cost Estimators

Summary

Cost estimators read blueprints to prepare estimates.

Quick Facts: Cost Estimators
2010 Median Pay	$57,860 per year $27.82 per hour
Entry-Level Education	Bachelor’s degree
Work Experience in a Related Occupation	None
On-the-job Training	None
Number of Jobs, 2010	185,400
Job Outlook, 2010-20	36% (Much faster than average)
Employment Change, 2010-20	67,500

What Cost Estimators Do

Cost estimators collect and analyze data to estimate the time, money, resources, and labor required for product manufacturing, construction projects, or services. Some specialize in a particular industry or product type.

Work Environment

Although cost estimators generally work in central offices, they often visit factory floors or construction sites. Cost estimators typically work under pressure and experience stress because of the need to meet deadlines. As a result, overtime is common.

How to Become a Cost Estimator

A bachelor’s degree is generally required for entering the occupation. However, some highly experienced construction workers with analytical abilities may qualify without a bachelor’s degree.

Pay

The median annual wage of cost estimators was $57,860 in May 2010.

Job Outlook

Employment of cost estimators is expected to grow 36 percent from 2010 to 2020, much faster than the average for all occupations. Job opportunities should be good as cost-conscious firms increasingly rely on cost estimates.

Similar Occupations

Compare the job duties, education, job growth, and pay of cost estimators with similar occupations.

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Contacts for More Information

Learn more about cost estimators by contacting these additional resources.

What Cost Estimators Do About this section

Estimators often collaborate with engineers and architects.

Cost estimators collect and analyze data to estimate the time, money, resources, and labor required for product manufacturing, construction projects, or services. Some specialize in a particular industry or product type.

Duties

Cost estimators typically do the following:

• Consult with industry experts to discuss estimates and resolve issues
• Identify and quantify cost factors, such as production time and raw material, equipment, and labor expenses
• Travel to job sites to gather information on materials needed, labor requirements, and other factors 
• Read blueprints and technical documents to prepare estimates
• Collaborate with engineers, architects, owners, and contractors on estimates
• Use sophisticated computer software to calculate estimates 
• Evaluate a product’s cost effectiveness or profitability
• Recommend ways to make a product more cost effective or profitable
• Prepare estimates for clients and other business managers
• Develop project plans for the duration of the project

Accurately predicting the cost, size, and duration of future construction and manufacturing projects is vital to the survival of any business. Cost estimators' calculations give managers or investors this information.

When making calculations, estimators analyze many inputs to determine how much time, money, and labor a project needs, or how profitable it will be. These estimates have to take many factors into account, including allowances for wasted material, bad weather, shipping delays, and other factors that can increase costs and lower profitability.

Cost estimators use sophisticated computer software, including database, simulation, and complex mathematical programs. Cost estimators often use a computer database with information on the costs of other similar projects.

General contractors usually hire cost estimators for specific parts of a large construction project, such as estimating the electrical work or the excavation phase. In such cases, the estimator calculates the cost of the construction phase for which the contractor is responsible, rather than calculating the cost of the entire project. The general contractor usually also has a cost estimator who calculates the total project cost by analyzing the bids that the subcontractors' cost estimators prepared.

Some estimators are hired by manufacturers to analyze certain products or processes.

The following are the two primary types of cost estimators:

Construction cost estimators estimate construction work. More than half of all cost estimators work in the construction industry. They may, for example, estimate the total cost of building a bridge or a highway. They may identify direct costs, such as raw materials and labor requirements, and set a timeline for the project. Although many work directly for construction firms, some work for contractors, architects, and engineering firms.

Manufacturing cost estimators calculate the costs of developing, producing, or redesigning a company’s goods and services. For example, a cost estimator working for a home appliance manufacturer may determine whether a new type of dishwasher will be profitable to manufacture.

Some manufacturing cost estimators work in software development. Many high-technology products require a considerable amount of computer programming, and the costs of software development are difficult to calculate.  

Two other groups also sometimes do cost estimating in their jobs. Operations research, production control, cost, and price analysts who work for government agencies may do significant amounts of cost estimating in the course of their usual duties. Construction managers also may spend considerable time estimating costs. For more information, see the profiles on operations research analysts and construction managers.

Work Environment About this section

Cost estimators visit construction sites to gather information.

Cost estimators held about 185,400 jobs in 2010. The industries that employed the most cost estimators in 2010 were as follows: 

While cost estimators generally work in offices, they often visit factory floors or construction sites. Depending on the industry, this may involve frequent travel.

Cost estimators often work under pressure and experience stress because of the need to meet deadlines. Inaccurate estimates can cause a firm to lose a bid or to lose money on a job that otherwise could have been profitable.

Work Schedules

Cost estimators usually work full time. However, overtime is common, especially when deadlines need to be met.

How to Become a Cost Estimator About this section

Cost estimators often present their work to clients.

A bachelor’s degree is generally required for becoming a cost estimator. However, some highly experienced construction workers with analytical abilities may qualify without a bachelor’s degree.

Education and Training

A growing number of employers prefer candidates that have a bachelor’s degree. A strong background in mathematics is essential.

Construction cost estimators generally need a bachelor’s degree in an industry-related field, such as construction management or building science. Those interested in estimating manufacturing costs typically need a bachelor’s degree in engineering, physical sciences, mathematics, or statistics. Some employers prefer candidates with backgrounds in business-related disciplines, such as accounting, finance, business, or economics.

Newly hired estimators often learn the industry by working alongside a more experienced cost estimator. This on-the-job training may last anywhere from several months to a few years, depending on the employer. Each company has its own way of handling estimates, and cost estimators have to learn their employers' ways of estimating costs.

It is important to gain relevant experience in an industry before becoming a cost estimator. For example, construction cost estimators should have experience in the construction industry. People interested in cost estimating can get experience through internships, cooperative education programs, or industry-related jobs.

Certification

Voluntary certification can show competence and experience in the field. In some instances, employers may require professional certification before hiring. The American Society of Professional Estimators, the Association for the Advancement of Cost Estimating International (also known as AACE International), and the Society of Cost Estimating and Analysis each offer a variety of certifications.

To become certified, estimators generally must have at least two years of estimating experience and must pass a written exam. In addition, some certification requirements may include publishing at least one article or paper in the field.

Important Qualities

Analytical skills. Accurately evaluating detailed specifications is crucial to a cost estimator’s success. For example, a cost estimator must determine how to minimize costs without sacrificing quality.

Critical-thinking skills. Cost estimators must identify the strengths and weaknesses of potential strategies, especially when considering profitability. Information critical to a product’s cost is not always straightforward, so estimators must devise creative ways to assess it.

Detail oriented. Cost estimators must pay attention to small details because they may have a large impact on a product’s overall cost.

Speaking skills. Cost estimators must have good speaking skills because they often discuss complex product information with other industry specialists. They must also present and defend their estimates and recommendations in a clear and convincing way.

Technical skills. Detailed knowledge of industry processes, materials, and costs are vital to estimators. In addition, they should be able to use sophisticated computer programs to calculate equations and handle large databases.

Time-management skills. Because cost estimators often work on fixed deadlines, they must plan their work in advance and do their tasks efficiently and accurately.

Writing skills. Cost estimators must be able to write detailed reports. Often, these reports determine whether or not contracts are awarded or products are manufactured.

Pay About this section

The median annual wage of cost estimators was $57,860 in May 2010. 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 $34,100, and the top 10 percent earned more than $95,620.

Median annual wages in the industries employing the largest numbers of cost estimators in 2010 were as follows:

Cost estimators usually work full time. However, overtime is common, especially when deadlines need to be met.

Job Outlook About this section

Employment of cost estimators is expected to grow 36 percent from 2010 to 2020, much faster than the average for all occupations.

Demand for cost estimators is expected to remain strong as companies look for more accurate cost projections and products and services that are more cost-effective.

Growth of the construction industry will create the majority of new jobs. In particular, construction and repair of the national infrastructure, including roads, bridges, airports, and subway systems, will drive demand for qualified estimators.

Job Prospects

Job prospects are expected to be good overall. Jobseekers with a bachelor’s degree and related work experience will have the best job opportunities as employers increasingly seek cost estimators with that background.

In manufacturing, those with a strong background in mathematics, statistics, engineering, or accounting, and knowledge of cost estimation software, should have the best prospects.

In construction, those with knowledge of Building Information Modeling (BIM) software are likely to have the best job prospects. Jobs of cost estimators working in construction, like those of many other trades in the construction industry, are sensitive to changing economic conditions. During economic downturns, there are frequent layoffs. During boom times, however, there may be shortages of workers.

Contacts for More Information About this section

For more information about cost estimators, visit

Association for the Advancement of Cost Estimating International

American Society of Professional Estimators

Society of Cost Estimating and Analysis