Cost Estimators
Have you ever wondered how big companies plan their massive projects? From towering skyscrapers to advanced industrial products like smartphones, cars, or airplanes, everything begins with estimating the total cost of building or manufacturing them, and calculating the expected time needed to complete them — all so business owners can make sure they don't run out of money halfway through, or end up with costs that exceed profits. Let's take a look at a few examples of cost estimation for a project. For instance, estimating the cost of building a residential property involves calculating the cost of the land, building materials, labor, equipment, and the fees for obtaining the necessary permits. In the case of an industrial product like a smartphone, cost estimation includes the cost of raw materials, labor, and other expenses like research and development, marketing, and distribution. A well-estimated cost helps companies allocate their resources efficiently, manage risk, make informed decisions, and calculate expected profits. On the other hand, poor cost estimation can lead to financial losses, missed opportunities, and even project failure. Because of all this, various companies and businesses hire experts known as "cost estimators" to handle the task of calculating all the costs of their projects, whether architectural construction or industrial products. They conduct research, analyze data, and provide insights that help companies make informed decisions. Their role isn't limited to estimating cost alone — it also includes monitoring project progress, identifying risks, and recommending cost-saving measures.
Meet the Writer: Waleed Abo Omiraa
What You'll Actually Do
The core tasks and responsibilities that fill a typical day.
- Analyze blueprints and other documentation to prepare time, cost, materials, and labor estimates.
- Assess cost effectiveness of products, projects or services, tracking actual costs relative to bids as the project develops.
- Consult with clients, vendors, personnel in other departments, or construction foremen to discuss and formulate estimates and resolve issues.
- Confer with engineers, architects, owners, contractors, and subcontractors on changes and adjustments to cost estimates.
- Prepare estimates used by management for purposes such as planning, organizing, and scheduling work.
- Prepare estimates for use in selecting vendors or subcontractors.
- Review material and labor requirements to decide whether it is more cost-effective to produce or purchase components.
- Prepare cost and expenditure statements and other necessary documentation at regular intervals for the duration of the project.
- Prepare and maintain a directory of suppliers, contractors and subcontractors.
- Set up cost monitoring and reporting systems and procedures.
- Establish and maintain tendering process, and conduct negotiations.
- Conduct special studies to develop and establish standard hour and related cost data or to reduce cost.
- Visit site and record information about access, drainage and topography, and availability of utility services.
- Collect historical cost data to estimate costs for current or future products.