Quick Overview for The Want-to-Be Cost Estimator

My 20+ years as a cost estimator and 30+ overall experience in construction taught me one thing: a cost estimator is a hot commodity during either slow or good economic times. The trick is to be versatile and look at the right construction sector during the ups and downs of the economy. Being narrowly specialized in one particular construction market niche will not help you keep your head above the waters all the time.

The key to success is to become excellent at what you do and continuously grow your experience and knowledge.

The only place where success comes before work is in the dictionary, Donald Kendall

So how versatile is a career in cost estimating? Let’s look at the construction industry and see the opportunities a cost estimator has to work in and expand their experience.

The construction industry is divided into two sectors:

1. Non-residential, and
2. Residential.

The non-residential sector is divided in:

1. Heavy industrial projects: power plants, refineries, nuclear plants, mining, oil and gas, shipyards, processing plants, etc.
2. Institutional and commercial projects: high-rise condos, office towers, schools, stadiums, malls, hospitals, museums, art galleries, etc.
3. Engineering projects: bridges, highways, tunnels, mass transit systems, roads, utilities, water and waste-water treatment plants, power lines, etc.

The residential sector is divided in:

1. New homes and,
2. Renovation and remodelling.

The typical employers in the construction industry are:

1. General contractors,
2. Design-builders,
3. Construction managers,
4. Speculative builders (companies which build buildings they plan to sell/operate for a profit),
5. Trade contractors.

Construction companies are often focused on projects within the same construction sector and on a few project types. There is also a cross-over between general contracting, design-build, construction management, and general contracting.

A cost estimator can also find employment with engineering firms, construction project owners, cost consulting firms and construction materials, suppliers/vendors.

So, where does a cost estimator start at the beginning of his/her career? Here is my advice:

1. Think long-term. Is the cost-estimating path your launch pad for another career in construction? Or do you want to grow a successful career as a cost estimator? I often come across project managers who moved from cost estimating to project management, cost estimators who used to be a trade person and moved into an office job, or project coordinators who learned cost estimating skills. Maybe you do not have the answer yet, but it is good to know that cost estimating can successfully launch you into another career.
2. Think construction sector and type of projects. This is important. What are your preferred types of projects? Residential, non-residential? Industrial? Infrastructure and utilities? Do you like large projects or small ones? The smaller the project, the higher the chances of working on multiple projects at any given time. Focusing on more than one project can be challenging for someone who prefers to work on one project at a time.
3. Think about the type of employer. Thinking of long-term career development in cost estimating, working for a general contractor or design-builder can speed up your career growth. A cost estimator with experience only in a specific trade can find it difficult to grow a career that expands beyond that specific trade. Not necessarily true all the time, but it is something worthwhile considering. There is the aspect of routine and multiple project workloads as well that needs consideration. A trade contractor requires cost estimating on the same scope of work and usually bids on many projects at any given time. So, as a cost estimator, you will be doing a lot of the same thing all over again on multiple projects at the same time.
4. Think versatility and skill transfer. While at the beginning of their career, most estimators start working on specific projects, my advice is to look for a change from time to time. Find opportunities to work on new project types within the same sector or related groups. This will help you stay employed when some construction sectors are doing less than others, add more experience to your portfolio of projects, and open the door for new opportunities.
5. Think project risk level. The risk associated with a project is in direct relationship with the potential rewards of that particular project. The contractor assumes the risk but will build a higher margin within the price, the project team has higher compensation by comparison with those working on low-risk projects. This is my observation through many years in the construction industry. A cost estimator who can take on a project with a high risk, complicated construction methodologies and unique design is a well-compensated estimator.
6. Think local versus global. If you are one of those people who like to chase projects which are quite unique to a region, you might want to consider working for a contractor who travels the world to build those projects. If it is your passion, go for it.

This was my two cents on what advice I would give someone looking to start a career in cost estimating. There is more to be considered, I am sure.

If you have anything to add to this article, please leave your comments below.