Do you know that up to 98% of building projects either face cost overruns or are delayed? This is why accurately estimating construction cost, material, labor, and procurements is paramount for documentation and successful project outcomes. Whether you’re working on a renovation or construction project, managing finances by yourself can be a complicated task. That’s where opting for a construction cost estimator can help a lot. You might be wondering, Why prioritize a cost estimator? Slight miscalculations and time mismanagement in the construction industry can not only increase overhead costs but cause delays in project deadlines as well. However, have you thought of ‘How much does it cost to hire an estimator for construction?’
This article will give you valuable insights into the cost of hiring a construction cost estimator.
Types Of Estimators You Can Hire
Estimators have become an important part of the construction sector. Their primary duties include estimating project costs, etc. Explore different types of estimators you can hire below;
Electrical Estimators
Electrical estimators are involved in assessing the electrical work of a building and project the cost required to complete it. Knowing various commercial and industrial building sizes will help in the creation of more accurate budget estimates. For this reason, having an in-depth understanding of electrical materials, including wiring and metals, is necessary for the position.
Landscape Estimators
Private and commercial clients hire landscape estimators to get a clear idea of the exact cost of a landscape project. However, a typical part of their analysis determining variables like property size and soil type. Individuals with extensive knowledge of horticulture and a strong interest in the environment choose to work in this field. So, hiring this type of estimator can be beneficial.
Plumbing Estimators
Plumbing estimators can be advantageous when determining how much a construction project will cost. They can easily achieve this because of their broad understanding of piping materials, labor, and plumbing systems. However, by including the area-based plumbing service pricing in their budget analysis, they can offer their clients a more accurate estimate. This in turn contributes to preventing clients from going over budget. It’ll be ideal to hire these estimators.
Building Estimators
The primary role of building estimators is to determine the cost of constructing the building’s enduring levels above the foundation. To provide the client with a detailed report, their analysis can incorporate the estimate of the civil engineering estimator. Adding more to this, these experts are also called quantity surveyors. Hiring these estimators can be highly advantageous.
Mechanical Estimators
The mechanical estimator is involved in interpreting mechanical designs to calculate the potential final cost of the project. A basic requirement for this role is a thorough understanding of necessary machine parts along with their costs. However, the average salary of mechanical estimators is anywhere around $40784.31 per year. No matter what kind and size of construction projects you’re embarking on, hiring mechanical estimators can be very beneficial.
Benefits Of Hiring A Construction Cost Estimator
Statistics have shown that around 61% of project managers who seek construction estimating services witnessed decreased project overrun costs. Are you thinking of working on a building project? However, there are many potential benefits of opting for a construction cost estimator;
Reduce Overhead Costs
As per recent studies, construction projects find up to a 16% increase in the total project cost. Overhead costs have become a headache for every general contractor, right? The actual cost of the building project can increase the budget that was initially provided. Therefore, it is advisable to get an exact estimation if you want to ensure the utmost success of your work. However, hiring an expert construction cost estimator can also help reduce overhead costs to the brim.
Time Management
Want to ensure a smooth project completion? If so, time management is a very important aspect here. Defining different targets and managing time for project completion helps contractors finish their construction projects in the specified time. However, hiring an experienced cost estimator completely defines the building project into different schedules for increased time management of the project. So, if you want to end your project on time, opt for an estimator.
Increase Profit Margin
Now detailed estimation and effective collaboration can help increase the profit margin rate for your construction project. About 8 to 30% of equipment and material expenses and 12 to 50% of labor expenses can be maintained as well as reduced with high-quality software and years of diversified experience for your project. If you don’t want to face project failures just because of inaccuracies and uncertainties, you should hire a professional construction estimator to work on your building project. So, by generating accurate estimates, he ensures to boost profit margins.
Quality Control
One of the important skills a construction cost estimator is equipped with is quality control. An expert estimator makes certain that the estimation adheres to the budget provided and is according to the client’s guidelines. An estimator can efficiently identify any kind of inefficiency in construction and mitigate it, producing checklists with efficacious results. Therefore, if you want to ensure 100% quality control for your ongoing infrastructure project, hire an estimator.
Winning Bids
About 75% of contractors lose bids on construction projects each year. Guess what? This all happens because of imprecision in cost estimation. Winning bids is equally important. Hiring a highly knowledgeable cost estimator ensures you get more than a 90% increase in your bid-win ratio. This will eliminate the hassle of exploring the market on foot or having experience in cutting-edge software to get an accurate estimation. In addition to this, an expert estimator brings broad years of experience to handle your building footprints, promising more bid wins.
Growing Business
Outsourcing your construction estimation needs to experienced estimators can help you save time and focus on several other crucial activities. With 100% efficiency assured, you can outrank your competitors by providing a well-represented and highly-detailed list fretting over a Spreadsheet. By generating precise estimates, reducing cost overruns, increasing profit margins, and winning more bids, you can ensure more than 20% growth in your construction business.
Factors Affecting The Cost Of Hiring An Estimator
The following are some of the leading factors that can influence the cost of hiring an estimator;
Experience And Expertise
Expert construction cost estimators offer a strong record of accuracy and plenty of expertise. Their industry knowledge can reduce the likelihood of cost overruns and ensure better execution of the building project by helping recognize possible issues and provide the most precise estimates. More customized and accurate estimates can be obtained from cost estimators with specialized knowledge. So, this is how experience and expertise matter when hiring estimators.
Scope Of The Project
Big construction projects have wider scopes, demanding more materials, and much longer turnaround times. A cost estimator has a lot of work to do, from estimations to budget adjustments. Estimators are needed to produce detailed budget breakdowns for every part and step of large projects, including structure work, finishing, and site preparation. Adding more to this, costs significantly increase as this level of detail requires more work and valuable time.
Extra Work Time
Speed work is usually needed for building projects with short timelines because construction cost estimators have a short time to generate accurate estimates. However, this sudden need may demand more resources or even extra hours, which will substantially increase the overall cost. So, to work with deadlines, estimators need to work extra hours, and ensure productivity.
Project Complexity
One of the other factors that can affect the cost of hiring an estimator is project complexity. Complete evaluations and complete cost analysis are essential for complex projects, such as sizable commercial buildings or infrastructure development. This in turn demands a cost estimator to invest more knowledge and time in managing a broad range of factors, including specialized materials, structural requirements, complex construction practices, and many more.
Market Condition
The market condition matters a lot when it comes to opting for an experienced estimator for your construction project. Building projects are different in their difficulties and requirements. For example, it’s usually less expensive and easier to estimate costs for residential building projects. Industrial and commercial projects demand a more detailed evaluation, which can change the fees. The cost of hiring an estimator with specialized skills may increase in the result.
Costs Associated With Hiring An Estimator
Several costs associated with hiring a construction cost estimator are discussed in the following;
Equipment And Software
The use of different software and tools can increase the cost of hiring an estimator. Unlike manual software, it can be quite expensive, right? However, they comprise the following;
Hardware – These hardware include monitors, computers, and additional gear that is needed.
Estimation Software – Software license costs, like Bluebeam, Planswift, or Sage Estimating.
Other Tools – Databases and industry publications are used as other helpful tools.
Benefits
Employers frequently offer advantages in addition to base pay that can raise overall compensation packages by up to 20-30%. We’ve discussed it briefly in the following section;
Retirement Plans – 401(k) plan contributions or pensions are available for the estimators.
Health Insurance – Estimators have insurance for vision, medical, dental, and more.
More Benefits – They are provided with disability insurance, wellness initiatives, and others.
Rewards And Bonuses
If you provide bonuses and rewards according to the estimator’s performance, it can be extremely heavy on your pocket. Below are some bonuses companies offer to their estimators;
Profit Sharing – These bonuses are based on the critical policies of the companies.
Sign-On Bonuses – These types of bonuses are given to entice seasoned cost estimators.
Performance Bonuses – Dependent on project profitability, timelines, and estimate accuracy.
Salary And Compensation
For the costs associated with hiring estimators, salary and compensation include the following;
Entry-Level Estimator – An entry-level construction cost estimator can earn between 40,000 and 60,000 per year, which is pretty good.
Mid-Level Estimator – Usually, the salary range of these cost estimators can be anywhere between 60,000 and 80,000 US dollars each year.
Office Space And Overhead
Mostly, companies provide overhead and office spaces for their estimator’s convenience, like;
Utilities And Supplies – These utilities and supplies comprise office supplies and even more.
Workspace – The price of renting a workplace will be given by the company itself.
Recruitment Expenses
Want to know about recruitment expenses? Have a look at some of them in the following;
Advertising – These expenses are linked with posting job openings on trade websites, etc.
Interview Costs – The materials and time used to interview candidates and travel costs.
Recruitment Agency Fees – If utilizing a staffing agency, 15-25% of the 1st year salary.
Additional Costs To Consider When Hiring Estimators
Above all, there are several other costs you need to consider when hiring a cost estimator, like;
- For extra services, such as project management support or value engineering, some businesses might also charge.
- Hiring estimating services may incur additional costs in addition to the estimator fee.
- It covers costs for things, like software licensing and training, and overhead.
- To prevent any surprises later, it is equally important to make these costs clear upfront.
How Much Should I Pay To A Cost Estimator?
The cost of hiring a qualified, highly knowledgeable, and skilled construction cost estimator varies significantly depending on the scope, complexity level, size, type, and location of the construction project. Generally speaking, the budget can be anywhere between $70 and $80 thousand a year. As mentioned earlier, the price may go down or higher depending on what kind of building project you embark on. Hiring an estimator can be advantageous for your construction project. If you really want to beat your market competitors and make a strong position for your company in the industry, hire estimators to generate accurate estimates for your project. With accurate estimates, you can avoid overbudgeting and underbudgeting issues.
The Final Statement
In this age of creativity and technological advancements, construction cost estimators are receiving a lot of attention. Their major role throughout the construction process is the reason behind it all. Comprehensively, construction estimators find the exact budget required to complete a building project effectively. They consider every crucial aspect, such as suppliers, labor, machinery backup plans, transportation costs, and overhead costs. It implies that you may take advantage of their help in a variety of ways. So, choose them wisely. We hope you have clearly understood why hiring cost estimators is important and how much they actually cost