The Art of Estimating

ESTIMATING plays a key role in the operation of construction companies. Accurate estimates are needed for a company to be successful in the bidding process while maintaining a reasonable profit margin. If the estimates are too high, the company may starve to death because of the lack of work. If the estimates are too low, the company may lose money and go bankrupt. The estimator is constantly walking a fine line between bidding too low and too high.

The Estimator;

The estimator is the person responsible for preparing the cost estimates. Large companies may employ an estimating department with one or more full-time estimators. The estimating department is often changed with preparing all of the company's estimates. In smaller companies, the project managers or company's owner may be responsible for preparing the estimates. Regardless of their job title, employees who are responsible for preparing estimates are estimators. The estimator is responsible for seeing that the estimate accurately incorporates the costs to complete the required scope of work along with a reasonable profit while remaining competitive with other firms in the market. Great skill is required to balance the need to be competitive with the need to be profitable.