Estimator Knowledge
The estimator uses all information available to him to build the estimate using the bottom up estimating method. The information comes from his own experience, similar projects close out reports, lesson learned or experience as project manager or construction manager.
The estimate is a forecast cost that might be incurred to deliver or to complete a project. Care should be taken to ensure that all scopes of work are covered and nothing is missed or duplicated.
In general, the estimator has to have a good knowledge of construction work and construction methodology. He or she needs to also have a good handle on the current market (subcontractor’s capabilities, experience and availability). A good knowledge of vendors, suppliers and materials is also important.
The quality of the estimate depends on the estimator having the following knowledge and capabilities:
- Project Management experience in construction and delivery methods (constructability).
- The estimator’s ability to read and interpret drawings and most importantly the ability to visualise the scope of work, whether it is simple or complex.
- Once the Project Management Team establish the delivery method, the estimator should should draft the Estimate Plan which is the basis upon which the estimate will be compiled.
- The ability to sketch the missing construction details (fill in the blanks) of data that may be need to be documented and qualified in the bid submission.
- The estimator and tender team should have a sound knowledge of the basis of design and code requirements.
- Estimator’s experience and familiarity of different construction material to be able to offer alternative solutions.
- Awareness of the labour market and productivity rates included in current industrial relations practices.
- Knowledge of construction plant (what to use to complete the job, availability and rates).
- The ability to forecast the number of staff personnel required to execute the scope of work (as displayed on an organisation chart) to suit the delivery method chosen.
- Awareness of finance, insurances and bonds market.
- Commercial and contractual skills.
- Negotiation skills, which may be required internally as well as externally.
Note that Estimators are not “born” but are developed through years of traineeship and formal or informal learning and practice in the industry.
Learning to become an Estimator takes time, practice, repetition and a lot of “learning by doing”. Skills are developed over time and using trial and error.
A contractor’s success in the industry is highly dependent on the knowledge and experience of the Estimators and the Project Management Team.
17 Essential Estimator Skills
An Estimator must possess the following skill sets and qualifications:
- Building trades (including types & method of construction)
- How to read plans, sketches & understand the specifications.
- Must be able to do quantity take-offs (material take offs).
- Determining the productivity of the labour force and have a basic understanding of industrial relations.
- Knowledge of local building codes and practices.
- Understand constructability and have the ability to visualise the construction of a project in order to estimate it.
- Be computer literate and have a strong command of spreadsheets.
- Meet all challenges without stress and long hours of work (easier said than done sometimes).
- Have good written and oral skills to present the proposal to management and to the client.
- The ability to develop solution and make necessary assumptions.
- Able to spot constructability problems and understand how to deal with them.
- Awareness of market conditions
- Have the ability to prepare the estimate systematically and carefully with patience and attention to detail.
- Use and improve company norms, with reference to estimating books and past contractor experience as required.
- Be strong at mathematics and geometric calculations.
- Able to substitute and qualify “equal quality” material when the specified materials are not available.
- Must be able to keep a database of information on a variety of areas such as labour productivity, materials, sub-contractors and construction plant availability.
The estimator must have a systematic approach to ensure that all cost items have been incorporated into the estimate and none have been duplicated or missed.
At a basic level, all you need is quantities and prices to complete an estimate. The price includes everything needed to complete the job and still be attractive enough against the competition.
Other estimators bidding on the same project might have the same information but it’s the utilisation and interpretation of that information along with experience that is the trick to being successful in estimating.
It is highly unlikely that two estimators on the project will ever produce the same estimate, even if they have the same education and experience in the industry.
The quality of the estimate depends on the qualification and abilities of the estimator. An Estimator must demonstrate the above mentioned capabilities, qualifications, knowledge and skills.