WHAT DOES A COST ESTIMATOR DO?

Published: August 23, 2024 - The Cost Estimator translates inspection documents into customer-friendly communication, preparing quotes based on detailed cost analyses, customer requirements, and established pricing policies. Responsible for processing orders, confirming pricing, and ensuring timely delivery, they serve as the initial point of contact for customer complaints, facilitating effective resolutions. Additionally, the role involves analyzing profitability, identifying cost drivers, and preparing comprehensive estimates for management, focusing on manpower, materials, and equipment utilization to optimize production and reduce costs.

A Review of Professional Skills and Functions for Cost Estimator

1. Cost Estimator Duties

  • Quote Evaluation: Evaluate requests, provide quotes for customers, and maintain quotation records in an organized manner.
  • Database Management: Enter quotation data into a computer database using Visual Mfg. and/or a quote worksheet (Excel).
  • Data Accuracy: Maintain accuracy on the computer of quotation data.
  • Historical Research: Research job history to estimate resource hours, pricing, etc., and to ensure accurate and concise quotes.
  • Internal Coordination: Meet with tooling manufacturing personnel, managers, and team leaders to stay abreast of current PUT capabilities and procedures.
  • Vendor Research: Research and obtain quotes from vendors needed to supply materials and services.
  • Customer Relations: Build relationships with and serve customers.
  • Customer Service: Respond promptly to calls and inquiries from customers.
  • Order Verification: Verify original information, deviations, and changes in orders with customers.
  • Customer Negotiations: Discuss quotes with customers via telephone or in-house meetings.
  • Terms Clarification: Clarify warranty, payment terms, inspection, and service issues with customers.
  • Relationship Building: Build collaborative relationships with clients, A&E professionals, contractors/GCs, vendors, and teams.
  • Contract Management: Manage contracts, add services, and handle invoicing.
  • Client Interaction: Receive positive client feedback and proactively market MGAC.

2. Cost Estimator Details

  • Estimating Support: Under the direction of a Senior Estimator, assist with engineers and architects' drawings to help prepare information on job costs, including labor, material, equipment, and specialty items necessary to complete the project.
  • Database Accuracy Review: Review bid projects to determine accuracy in relation to a newly created construction cost estimating database.
  • Database Management: Continually update the database based on comparison to bids and current market trends.
  • Database Development: Develop and maintain cost estimating and related databases.
  • Quantity Surveying: Conduct quantity surveys using various sources of information including 2D drawings and 3D models.
  • Supplier Review: Review supplier quotes for completion of estimating scope.
  • Construction Knowledge Utilization: Utilize knowledge of construction techniques, proper scheduling, purchases, and work for the benefit of the projects.
  • Collaborative Work: Collaboratively work with contractors, state, local municipalities, inspectors, and clients.
  • Plan Interpretation: Interpret plans and specifications.
  • Presentation Development: Develop presentations, mock-ups, training, and documentation materials.
  • Cost Estimation: Prepare cost estimates for commercial and municipal building projects based on the use of construction plans and industry knowledge.
  • Bid Monitoring: Provide continuous monitoring of open bids, RFPs, and estimates to inform management of either new business awards or lost opportunities.
  • Project Management: Provide on-site management of assigned construction projects.
  • Project Performance Management: Ensure project performance through the effective prioritization of safety and environment needs, schedule, costs, equipment, manpower, material, subcontractors, equipment maintenance, and quality.

3. Cost Estimator Responsibilities

  • Bid Analysis: Review bid requirements thoroughly and ask follow-up questions.
  • Pre-bid Strategy: Participate in pre-bidding decision-making efforts.
  • Site Evaluation: Review preliminary drawings and specifications, perform site visits, and gather information related to site access, surface topography, drainage, and the availability of electricity, water, and other services.
  • Scope Identification: Identify areas of work that are outside of the subcontracted scope.
  • Estimation Preparation: Prepare an estimate of the materials, labor, subcontractors, and equipment required to perform the statement of work (SOW).
  • Subcontractor Bid Analysis: Analyze bids made by subcontractors.
  • RFI Development: Develop RFIs and clarifications.
  • Operational Review: Review drawings with the Chief Operations Officer and highlight areas of concern.
  • Cost Summary Development: Develop a cost summary for the entire project, including costs of labor, equipment, materials, subcontractors, overhead, taxes, insurance, markup, and any additional costs that may affect the project.
  • Relationship Building: Establish relationships with current and prospective clients.
  • Vendor Communication: Solicit and maintain communication with subcontractors and vendors.
  • Team Collaboration: Cooperate to achieve project and company goals.

4. Cost Estimator Accountabilities

  • Cost Estimation: Provide cost estimates at planning level through final design, accurately reflecting a reasonable amount of the actual project cost with a goal of 5-10% above the actual cost.
  • Team Support: Assist design staff, project managers, program managers, and construction managers in leading project construction cost estimating efforts and assisting in controlling construction project budgets during planning, conceptual, preliminary, and final design.
  • Cost Management: Notify the project manager or designer of possible cost overruns and suggest possible areas of construction project scope reduction to minimize or eliminate those overruns.
  • Price Analysis: Participate in discussions with designers and suppliers to determine major material and equipment prices to be used on the project.
  • Document Leadership: Lead the preparation of cost estimate documents incorporating input from these discussions.

5. Cost Estimator Functions

  • Estimation: Prepare cost estimates for window repairs using information provided by the inspection department.
  • Communication Translation: Translate inspection documents to customer-appropriate communication.
  • Quote Preparation: Prepare customer quotes based on cost estimates, customer requirements, and company pricing policies.
  • Customer Communication: Communicate a quote to a customer.
  • Order Processing: Process orders, confirm customer pricing, and delivery dates.
  • Customer Service Interface: Serve as the first point of contact for customer complaints and utilize effective judgment.
  • Complaint Handling: Refer appropriate complaints to the Customer Service Manager and, if necessary, the quality department, and actively assist with a resolution.
  • Problem Investigation: Investigate problems, identify possible solutions, and make recommendations to management.
  • Document Processing: Process a variety of documents (work orders, purchase orders, invoices) for data entry using an ERP System such as Pentagon 2000SQL software.
  • Profitability Analysis: Analyze profitability on closed work orders, investigate differences to quote.
  • Requirements Identification: Identify equipment, labor, raw materials, purchased components, packaging, and other requirements needed to produce the product.
  • Cost Computation: Compute cost factors and prepare estimates for management use in planning, manpower availability, materials, equipment utilization, tooling needs, and product cost.