Cost Estimator Career Guide

What is a cost estimator?

A cost estimator figures out how much it will cost to make a product or complete a project. They look at everything needed—like materials, labor, and time—and help businesses understand how much things will cost.

These experts play a big part in helping a business keep going and grow. They try to keep costs down and use resources smartly. Their work helps a company decide how to price things, plan budgets, and think about new projects.

Duties and responsibilities

Their main job is to give accurate cost estimates for projects or making products. They look at plans or prototypes and figure out what’s needed, then use special software to add up all the costs. They keep their estimates up-to-date if things like material costs or work times change. Staying on top of market prices and trends is also a big part of their job.

Cost estimators also prepare reports that explain all the costs to the bosses. They might suggest ways to save money or use resources better, based on what they know about the project.

Work environment

Cost estimators’ work environments differ by industry. For instance, those in construction might often visit sites and meet with contractors, architects, and clients. If they’re in manufacturing, they might spend lots of time in offices, factories, or production sites, working closely with engineering and production teams. However, most cost estimators work in offices, focusing on data and software.

Typical work hours

Cost estimators usually work full-time, typically 9 a.m. to 5 p.m., Monday through Friday. When deadlines are close, they might work extra hours to meet them. Overtime isn’t common but can happen when it’s really busy. Some estimators, especially independent consultants, might have more flexible schedules.

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How to become a cost estimator

Becoming a cost estimator means getting the right education, gaining experience, and picking up key skills. Here’s how you can start this career:

Step 1: Earn a bachelor’s degree

Start with a bachelor’s degree in something like engineering, business, or construction management. These courses teach you about math, finance, and business, which are all important for estimating costs.

Step 2: Gain relevant work experience

After college, work in a field that interests you, like construction, manufacturing, or insurance. This job experience gives you a practical understanding of how things work, which is crucial for making good cost estimates.

Step 3: Develop key skills

As you work, build up your analytical and math skills. Knowing how to handle finances and operations is a must. Also, learn to use industry-specific software, which is a big part of the job.

Step 4: Consider getting certified

Certifications aren’t always required, but they can help you stand out. Groups like the International Cost Estimating and Analysis Association offer certifications that show you know your stuff. These usually need you to pass a test and sometimes have work experience.

Step 5: Apply for jobs

With the right education, experience, and skills, you’re ready to look for a job as a cost estimator. Apply, go to interviews, and you might even need to show some sample cost estimates to potential employers. This is your final step to landing the job.

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How much do cost estimators make?

There are many variables that go into determining how much a cost estimator makes, from company size to experience to education, just to name a few. 

Highest paying industries

• Aerospace Manufacturing: $80,200
• Natural Gas Distribution: $79,720
• Petroleum and Coal Products Manufacturing: $79,380
• Oil and Gas Extraction: $78,540
• Scientific Research Services: $77,650

Browse cost estimator salary data by market

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Types of cost estimators

Cost estimators have different specialties, depending on the industry they work in. Here are some common types:

Construction cost estimator

These professionals focus on building projects. They figure out the costs of labor, materials, and equipment needed for construction projects, which is key to setting up the project’s budget.

Manufacturing cost estimator

These estimators work in manufacturing. They analyze how much it will cost to make a product. This includes looking at all potential expenses, which helps decide the product’s cost, price, and even if it’s worth making.

Automotive cost estimator

In the automotive industry, estimators calculate the costs of designing and building new vehicle models. They consider materials, labor, production methods, and timelines, which are vital for making decisions about manufacturing and pricing vehicles.

Software cost estimator

These estimators focus on software projects. They predict the costs involved in developing software, including labor hours, coding, and testing. Their estimates are crucial for planning software projects and figuring out if they’ll be profitable.

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Top skills for cost estimators

To succeed as a cost estimator, it’s crucial to develop certain skills. Here are the key abilities you should focus on:

Analytical skills

Cost estimators need to be sharp with numbers and data. They review technical documents, understand project details, and break them down into cost-effective plans. Their skill in analyzing data helps predict cost trends, which is critical for managing profitable projects and avoiding financial setbacks.

Software proficiency

They use specialized software to create estimates, compare scenarios, and assess the financial impact of various decisions. Staying updated with the latest tools and being willing to learn new software is essential in this fast-evolving field.

Negotiation skills

Estimators often negotiate with suppliers and contractors to get the best prices. Being able to negotiate effectively without straining relationships is key. Good negotiation skills can lead to significant cost savings and enhance project profitability.

Communication and organizational skills

Effective communication is vital, as they must explain complex information clearly to managers, clients, and other stakeholders. They also need strong organizational skills to manage their tasks efficiently and deliver accurate estimates on time.

Problem-solving orientation

Problems can pop up unexpectedly in any project, potentially throwing off initial estimates. Estimators should be great at problem-solving, ready to reassess situations and find solutions quickly to keep projects on track without compromising quality or budget.

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Cost estimator career path

Cost estimators have several avenues for career advancement after gaining experience. Here’s what the path can look like:

Senior estimating roles

After working as a cost estimator, many move into senior roles where they handle more complex estimates and often oversee junior staff. These positions involve a deeper understanding of the estimating process and coordinating detailed cost studies.

Specialization

Some choose to specialize in specific types of projects, like construction. They might advance to roles such as construction manager or project manager, offering more job security and potential for higher earnings.

Executive roles

For those interested in leadership, moving into executive positions such as director of operations or financial manager is a common path. These roles require strong leadership abilities and a thorough understanding of business operations.

Branching into other fields

Many estimators use their analytical skills to move into financial analysis, strategic planning, or business consulting. Their skills in data analysis, attention to detail, and problem-solving are highly valued in various industries.

Starting a consulting business

Some cost estimators leverage their industry experience and contacts to start their own consulting businesses. They offer cost estimation and business advice, helping clients save money and boost profitability. Running a business includes finding clients, managing finances, and potentially hiring staff, but the independence can be very rewarding.

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Similar job titles

• Budget Manager
• Financial Analyst
• Procurement Engineer
• Procurement Manager
• Project Coordinator
• Purchasing Coordinator
• Purchasing Manager

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Position trends and outlook for cost estimators

• Technological integration: Cost estimators increasingly rely on digital platforms and software to enhance their effectiveness. These tools allow for more efficient analysis, improve estimate accuracy, and enable handling of more complex projects.
• Sustainability trends: As green building practices gain traction, there’s a growing demand for estimators knowledgeable in sustainable materials and methods. Understanding these trends is key for those looking to remain relevant and advance their careers.
• Economic impact: The competitive economic environment, especially among contractors bidding for projects, highlights the critical role of cost estimators. Their ability to influence bidding strategies through precise estimates is more important than ever, affecting the success of their companies.

Employment projections

According to the U.S. Bureau of Labor Statistics, the demand for cost estimators is expected to decline by 3% through 2032. This decrease is largely attributed to the adoption of technologies that automate some traditional roles. However, those who adapt and enhance their tech skills may find better job opportunities despite the overall decline.

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Cost estimator career tips

Understand the industry specifics

Every sector, whether construction, manufacturing, or software, has unique aspects that affect costs and pricing. Immerse yourself in your specific industry. Learn about the latest technologies, materials, labor needs, and regulations to provide the most accurate estimates.

Keep up-to-date with market trends

The global market is dynamic, and fluctuations in material and labor costs can greatly impact your estimates. Staying informed about these trends is crucial for providing relevant estimates and becoming a key player in strategic decisions.

Embrace technology

Tech advancements streamline estimation processes and increase accuracy. Become proficient with the latest estimating software and stay current with developments in your field. This technological edge can significantly boost your career prospects.

Commit to continuous learning

The field of cost estimation is complex and constantly evolving. Engage in ongoing education to keep up with best practices and new methodologies:

• Attend workshops and seminars
• Take online courses
• Consider further academic pursuits like a master’s degree
• Obtain additional professional certifications to enhance your knowledge and skills

Build a professional network

Networking opens up new opportunities and provides insights from peers. Join professional associations and online forums to connect with others in the industry and stay informed about the latest trends and developments:

• American Society of Professional Estimators
• Association for the Advancement of Cost Engineering
• International Cost Estimating and Analysis Association
• LinkedIn Groups such as Estimators Unite and Construction Estimator

Strive for professional certifications

Certifications are a testament to your expertise and dedication. They make you stand out to potential employers and can greatly aid your career advancement:

• Certified Cost Professional (CCP) from the Association for the Advancement of Cost Engineering
• Professional Quantity Surveyor (PQS) from the Canadian Institute of Quantity Surveyors
• Certified Estimating Professional (CEP) from the American Society of Professional Estimators

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FAQs