The estimator is the life blood of business, especially in construction. We have our counterparts in other industries. These are economists and actuaries to name two other occupations. All three deal in reliably forecasting (estimating) costs before they are actually incurred. There are many basic and advanced skill sets involved in estimating.
The basic skill sets for an estimator are in reading, writing and arithmetic. These skills can be picked up in grade school through high school. They are improved upon by on the job training, like blue print reading, contract interpretation and constructability issues. Sometimes the skills are gained through specialized courses of study in vocational schools or colleges. This involves a wealth of subjects too.
The nuances to these three areas are what distinguish a competent estimating professional or career estimator from the pretenders. The nuances are what an experienced estimator knows and what the beginning estimator must learn. This is what other professions need to understand about the estimating profession.
Take the basic skill of reading. An estimator must read blueprints and specifications. These must be translated from their existing media to another form for identification and pricing purposes.
This leads to writing. The estimator must take the information from reading and identify all of the potential cost items on an estimate sheet. This lists items that are shown on the plans and called out in the specifications. It also includes related cost items that are necessary but not shown on the plans. This could be as straight-forward as adding a crane for lifting.
The reading and writing lead to arithmetic. At its simplest level it is just sixth grade mathematics. A quantity multiplied by a unit hour will give the total hours. The total hours times a labor rate will give the total labor dollars. Continue this process with materials, equipment and/or subcontract prices and you will have a line totals. Add all of the labor, material, equipment and subcontracts together and pretty soon you have an estimate total. Add indirect costs and profit and pretty soon you have a bid amount.
These are the basic skills to begin a career as an estimator (or even to be a pretender.) In upcoming blogs the nuances of the reading, writing and arithmetic will be covered. The estimating professionals may nod and say “Yep.” Others may say “I didn’t know that.” Some may say “Baloney” or another equivalent.
