A cost estimator provides accurate cost and time estimates for potential projects, which are used for cost-benefit analysis and pricing decisions. They work in construction, manufacturing, and consulting industries, analyzing all aspects of the project to provide an accurate forecast. Incorrect estimates can lead to lost profits and customers.
A cost estimator is the person responsible for providing the total costs and time needed to complete potential projects. These estimates are used to complete a cost-benefit analysis and identify potential selling price and profit. The reports provided by the estimator have a direct impact on the financial decisions taken by the company.
Cost estimators generally work in three different industries: construction services, manufacturing, and consulting. While the details of the roles vary slightly across industries, the core task is the same. They are responsible for collecting and analyzing information related to all aspects of the proposed project and providing an accurate forecast of the total project cost and profit margin.
In the construction industry, the estimator is responsible for reviewing the design drawings and specifications in detail. Working closely with the architecture and design team, they learn about the client’s requirements and the proposed design. The next step is to visit the proposed project website.
Every site is different, but basic needs for water, electricity, and other services must be met and built into the cost of the project. Other factors that should be included are staging space, specialized equipment requirements, and the climate. All these items influence the timeline, costs and must be reflected in the total cost of the project.
A manufacturing cost estimator is a member of the engineering or costing department. Its role is to provide accurate cost estimates for building a product in a variety of scenarios. This task starts with reviewing the designs or designs. A detailed analysis of required parts, manufacturing cost and purchase cost is completed. Assembly, tooling, equipment installation and testing costs are incorporated into the final report.
The cost estimator’s role in a manufacturing environment requires formal post-secondary education in engineering, science, and planning. Other important skills are attention to detail, accuracy and extensive knowledge of all aspects of the business. Most estimators also have several years of experience working in the production field.
A consulting firm generates profit through accurate pricing. Regardless of the actual consulting work, the firm must be able to identify the right resource, estimate the required schedule, and provide an accurate quote to the client. The cost estimator is responsible for reviewing the project specifications, exploring the customer environment, and defining the project scope. They create project plans, milestones, and allocate time for learning and meetings.
Incorrect estimates cost the company profits and potential customers. Once the quotation for the work has been accepted, the company is obliged to provide these services for the price provided. If the price is too high, the company will lose the opportunity to work. If the price is too low, there is no profit and the company may even lose money on the project.
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