Cost Estimators
 |
Cost Estimators
Do you get a kick out of calculating? Consider a career as a cost estimator. The career information presented here will help you discover what the job outlook is, what the working conditions are, what education you'll need, and the salary range you can expect to earn.
|
Read More
Cost Estimators
 |
Cost Estimators
Do you get a kick out of calculating? Consider a career as a cost estimator. The career information presented here will help you discover what the job outlook is, what the working conditions are, what education you'll need, and the salary range you can expect to earn. |
Learn more in the career education information listed below:
- Job Description
- Employment
- Job Outlook
- Related Occupations
- Working Conditions
- Education, Training & Qualifications
- Salary Expectations
- Associations, Resources & Accreditation
Overview
- Fifty percent work in the construction industry, and another 20 percent are found in manufacturing industries.
- Growth of the construction industry will be the driving force behind the demand for cost estimators; employment of cost estimators in manufacturing should remain relatively stable.
- In construction and manufacturing, job prospects should be best for those with industry work experience and a degree in a related field.
Job Description
Accurately forecasting the cost of future projects is vital to the survival of any business. Cost estimators develop the cost information that business owners or managers need to make a bid for a contract or to determine if a proposed new product will be profitable. They also determine which endeavors are making a profit.
Regardless of the industry in which they work, estimators compile and analyze data on all the factors that can influence costs - such as materials, labor, location, and special machinery requirements, including computer hardware and software. Job duties vary widely depending on the type and size of the project.
The methods of and motivations for estimating costs can vary greatly, depending on the industry. On a construction project, for example, the estimating process begins with the decision to submit a bid. After reviewing various preliminary drawings and specifications, the estimator visits the site of the proposed project. The estimator needs to gather information on access to the site and availability of electricity, water, and other services, as well as on surface topography and drainage. The information developed during the site visit usually is recorded in a signed report that is included in the final project estimate.
After the site visit is completed, the estimator determines the quantity of materials and labor the firm will need to furnish. This process, called the quantity survey or "takeoff," involves completing standard estimating forms, filling in dimensions, number of units, and other information. A cost estimator working for a general contractor, for example, will estimate the costs of all items the contractor must provide. Although subcontractors will estimate their costs as part of their own bidding process, the general contractor's cost estimator often analyzes bids made by subcontractors as well. Also during the takeoff process, the estimator must make decisions concerning equipment needs, sequence of operations, and crew size. Allowances for the waste of materials, inclement weather, shipping delays, and other factors that may increase costs also must be incorporated in the estimate.
On completion of the quantity surveys, the estimator prepares a total project - cost summary, including the costs of labor, equipment, materials, subcontracts, overhead, taxes, insurance, markup, and any other costs that may affect the project. The chief estimator then prepares the bid proposal for submission to the owner.
Construction cost estimators also may be employed by the project's architect or owner to estimate costs or track actual costs relative to bid specifications as the project develops. In large construction companies employing more than one estimator, it is common practice for estimators to specialize. For example, one may estimate only electrical work and another may concentrate on excavation, concrete, and forms.
In manufacturing and other firms, cost estimators usually are assigned to the engineering, cost, or pricing departments. The estimators' goal in manufacturing is to accurately estimate the costs associated with making products. The job may begin when management requests an estimate of the costs associated with a major redesign of an existing product or the development of a new product or production process. When estimating the cost of developing a new product, for example, the estimator works with engineers, first reviewing blueprints or conceptual drawings to determine the machining operations, tools, gauges, and materials that would be required for the job. The estimator then prepares a parts list and determines whether it is more efficient to produce or to purchase the parts. To do this, the estimator must initiate inquiries for price information from potential suppliers. The next step is to determine the cost of manufacturing each component of the product. Some high technology products require a tremendous amount of computer programming during the design phase. The cost of software development is one of the fastest growing and most difficult activities to estimate. Some cost estimators now specialize in estimating only computer software development and related costs.
The cost estimator then prepares time-phase charts and learning curves. Time-phase charts indicate the time required for tool design and fabrication, tool "debugging" - finding and correcting all problems - manufacturing of parts, assembly, and testing. Learning curves graphically represent the rate at which performance improves with practice. These curves are commonly called "cost reduction" curves because many problems - such as engineering changes, rework, parts shortages, and lack of operator skills - diminish as the number of parts produced increases, resulting in lower unit costs.
Using all of this information, the estimator then calculates the standard labor hours necessary to produce a predetermined number of units. Standard labor hours are then converted to dollar values, to which are added factors for waste, overhead, and profit to yield the unit cost in dollars. The estimator then compares the cost of purchasing parts with the firm's cost of manufacturing them to determine which is cheaper.
Computers play an integral role in cost estimation because estimating often involves complex mathematical calculations and requires advanced mathematical techniques. For example, to undertake a parametric analysis (a process used to estimate project costs on a per unit basis, subject to the specific requirements of a project), cost estimators use a computer database containing information on costs and conditions of many other similar projects. Although computers cannot be used for the entire estimating process, they can relieve estimators of much of the drudgery associated with routine, repetitive, and time-consuming calculations. Computers also are used to produce all of the necessary documentation with the help of word-processing and spreadsheet software, leaving estimators more time to study and analyze projects.
Operations research, production control, cost, and price analysts who work for government agencies also may do significant amounts of cost estimating in the course of their regular duties. In addition, the duties of construction managers also may include estimating costs.
Return to top
Working Conditions
Although estimators spend most of their time in an office, construction estimators must make visits to project worksites that can be dusty, dirty, and occasionally hazardous. Likewise, estimators in manufacturing must spend time on the factory floor where it also can be noisy and dirty. In some industries, frequent travel between a firm's headquarters and its subsidiaries or subcontractors also may be required.
Although estimators normally work a 40-hour week, overtime is common. Cost estimators often work under pressure and stress, especially when facing bid deadlines. Inaccurate estimating can cause a firm to lose out on a bid or lose money on a job that was not accurately estimated.
Return to top
Employment
Cost estimators held about 211,000 jobs in 2000, about 50 percent of which were in the construction industry. Another 20 percent of cost estimators were employed in manufacturing industries. The remainder worked for engineering and architectural services firms and business services firms, and throughout a wide range of other industries.
Cost estimators work throughout the country, usually in or near major industrial, commercial, and government centers, and in cities and suburban areas undergoing rapid change or development.
Return to top
Education, Training & Qualifications
Entry requirements for cost estimators vary by industry. In the construction industry, employers increasingly prefer individuals with a degree in building construction, construction management, construction science, engineering, or architecture. However, most construction estimators also have considerable construction experience, gained through work in the industry, internships, or cooperative education programs. Applicants with a thorough knowledge of construction materials, costs, and procedures in areas ranging from heavy construction to electrical work, plumbing systems, or masonry work have a competitive edge.
In manufacturing industries, employers prefer to hire individuals with a degree in engineering, physical science, operations research, mathematics, or statistics; or in accounting, finance, business, economics, or a related subject. In most industries, great emphasis is placed on experience involving quantitative techniques.
Cost estimators should have an aptitude for mathematics, be able to quickly analyze, compare, and interpret detailed and sometimes poorly defined information, and be able to make sound and accurate judgments based on this knowledge. Assertiveness and self-confidence in presenting and supporting their conclusions are important, as are strong communications and interpersonal skills, because estimators may work as part of a project team alongside managers, owners, engineers, and design professionals. Cost estimators also need knowledge of computers, including word-processing and spreadsheet packages. In some instances, familiarity with special estimation software or programming skills also may be required.
Regardless of their background, estimators receive much training on the job because every company has its own way of handling estimates. Working with an experienced estimator, they become familiar with each step in the process. Those with no experience reading construction specifications or blueprints first learn that aspect of the work. They then may accompany an experienced estimator to the construction site or shop floor, where they observe the work being done, take measurements, or perform other routine tasks. As they become more knowledgeable, estimators learn how to tabulate quantities and dimensions from drawings and how to select the appropriate material prices.
For most estimators, advancement takes the form of higher pay and prestige. Some move into management positions, such as project manager for a construction firm or manager of the industrial engineering department for a manufacturer. Others may go into business for themselves as consultants, providing estimating services for a fee to government, construction, or manufacturing firms.
Many colleges and universities include cost estimating as part of bachelor's and associate degree curriculums in civil engineering, industrial engineering, and construction management or construction engineering technology. In addition, cost estimating is a significant part of many master's degree programs in construction science or construction management. Organizations representing cost estimators, such as the Association for the Advancement of Cost Engineers (AACE) International and the Society of Cost Estimating and Analysis (SCEA), also sponsor educational and professional development programs. These programs help students, estimators-in-training, and experienced estimators stay abreast of changes affecting the profession. Specialized courses and programs in cost-estimating techniques and procedures also are offered by many technical schools, community colleges, and universities.
Voluntary certification can be valuable to cost estimators because it provides professional recognition of the estimator's competence and experience. In some instances, individual employers may even require professional certification for employment. Both AACE International and SCEA administer certification programs. To become certified, estimators usually must have between 3 and 7 years of estimating experience and must pass an examination. In addition, certification requirements may include publication of at least one article or paper in the field.
Return to top
Job Outlook
Overall employment of cost estimators is expected to grow about as fast as the average for all occupations through the year 2010. In addition to openings created by growth, some job openings also will arise from the need to replace workers who transfer to other occupations or leave the labor force.
Growth of the construction industry, in which half of all cost estimators are employed, will be the driving force behind the demand for these workers. Construction and repair of highways and streets, bridges, and construction of more subway systems, airports, water and sewage systems, and electric power plants and transmission lines will stimulate demand for many more cost estimators. The increasing population and its changing demographics that will increase the demand for residential construction and remodeling also will spur demand for cost estimators. As the population ages, the demand for nursing and extended care facilities will increase. School construction and repair also will add to the demand for cost estimators. Job prospects in construction should be best for cost estimators with a degree in construction management or construction science, engineering, or architecture who have practical experience in various phases of construction or in a specialty craft area.
Employment of cost estimators in manufacturing should remain relatively stable as firms continue to use their services to identify and control their operating costs. Experienced estimators with degrees in engineering, science, mathematics, business administration, or economics should have the best job prospects in manufacturing.
Return to top
Salary Expectations
Salaries of cost estimators vary widely by experience, education, size of firm, and industry. Median annual earnings of cost estimators in 2000 were $45,800. The middle 50 percent earned between $35,040 and $59,410. The lowest 10 percent earned less than $27,710, and the highest 10 percent earned more than $75,460. Median annual earnings in the industries employing the largest numbers of cost estimators in 2000 were:
- Nonresidential building construction $50,930
- Electrical work $49,630
- Plumbing, heating, and air-conditioning $47,680
- Residential building construction $46,360
- Miscellaneous special trade contractors $45,740
College graduates with degrees in fields that provide a strong background in cost estimating, such as engineering or construction management, could start at a higher level. According to a 2001 salary survey by the National Association of Colleges and Employers, bachelor's degree candidates with degrees in construction science/management received job offers averaging about $40,740 a year.
Return to top
Related Occupations
Other workers who quantitatively analyze information include accountants and auditors; budget analysts; claims adjusters, appraisers, examiners, and investigators; economists and market and survey researchers; financial analysts and personal financial advisors; insurance underwriters; loan counselors and officers; and operations research analysts. In addition, the duties of industrial production managers and construction managers also may involve analyzing costs.
Return to top
Associations, Resources & Accreditation
Information about career opportunities, certification, educational programs, and cost-estimating techniques may be obtained from:
- Association for the Advancement of Cost Engineering International
- Society of Cost Estimating and Analysis
Return to top
Source:
Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2002-03 Edition, Accountants and Auditors, on the Internet at http://www.bls.gov/oco/ocos001.htm
Return to top
Collapse
Pursue your Business and Management major today…
|
Virginia College
Earn your associate's, bachelor's or master's degree from Virginia College. Our extensive programs are offered 100% online, so you can launch the career of your choice from the comfort of your own home.
Learn more about programs at Virginia College
Healthcare Reimbursement focuses on the fundamentals of medical office protocol with specialized training in the areas you will need for a job in this growing field. As a Virginia College student, you?ll be prepared for entry-level positions in the medical field related to reimbursement procedures. You?ll learn the fundamentals of medical office protocol and get specialized training in Current Procedural Terminology (CPT), International Classification of Diseases (ICD), and Health Care Financing Administration Common Procedural Coding System (HCPCS). You will also serve an externship for on-the-job training. You?ll be supervised by a physician, nurse, or health services professional and learn the billing and coding process from the working perspective.
What do Medical Office Administration graduates do?
Medical Office Administrators perform administrative duties in a medical office or clinic, reporting directly to an office manager, physician, or other health practitioner. You will help with communicating with patients and other providers, billing insurance companies, code physician diagnostic comments and orders, and more. This program is designed to teach you how to work closely with doctors to organize and monitor patient care services. In short, you will be a vital part of the health care team in a physician's office, a clinic, a hospital, a long–term care facility, or other medical office.
What classes will I take?
At Virginia College, you will only take courses that pertain to your success in the workforce. Do not worry if you are not already skilled in the areas below. That is why you are coming to school! We are experienced in giving students the training they need to become successful in their chosen careers.
You will have classes in:
Medical terminology
Medical law and ethics
Medical laboratory procedures
Medical records systems
Accounting
Business
Office automation
Customer service
In addition to training from instructors with real–world experience, you will also complete an externship in a physician's office, clinic or related health care facility under the supervision of a physician, nurse, or health services professional.
This online Bachelor of Science degree in Golf Course Management is designed to provide students with a diversified education in managing and operating a golf course, or other golf-related facilities. The program is designed for those who have completed the fundamentals in an associate degree program* and would like to add the skills and knowledge needed to give them a solid background in business and management. Students will gain critical thinking skills, management training, and leadership development. This comprehensive program provides graduates with the fundamental skills necessary to adapt to the golf management path they choose to follow.
Upon successful completion of this program, students should be able to
_ evaluate the golf management industry and career opportunities in the field;
_ establish and maintain high standards of personal and industry ethics at the pro shop;
_ conform to professional standards in personal appearance;
_ define concepts and procedures for purchasing, receiving, storage, and inventory of golf equipment and
supplies;
_ apply management principles to the food service industry and demonstrate leadership skills;
_ perform front of the house service functions and set and maintain service standards for various customers; and
_ describe the origin of various industry standards and their relationship to the history and cultural development of golf.
*Note: This program is offered in the online format but to qualify for admission, candidates must have completed an associate of applied business degree in golf complex operations and management comparable to the one offered by Golf Academy of America. Prospective students should speak with an Admissions Associate to determine acceptability of earned credits or degrees..
The online BS in Health Services Management program is designed for current and aspiring healthcare professionals. With this degree, you may qualify for jobs in hospitals, physicians' offices, ambulatory care centers, home health agencies, and more.
Virginia College is a senior college accredited by the Accrediting Council for Independent Colleges and Schools to award certificates, diplomas, associate's, bachelor's, and master's degrees. The Accrediting Council for Independent Colleges and Schools is listed as a nationally recognized accrediting agency by the United States Department of Education and is recognized by the Council for Higher Education Accreditation.
|
|
|
|
Bryant & Stratton College - Online
Develop the skills you need to reach your goals at Bryant & Stratton College. We offer career-focused degrees in a number of today's fastest-growing fields. Study online or in small classes, and get a quality education that fits into your busy life.
Learn more about programs at Bryant & Stratton College - Online
The Bachelor of Science in Health Services Administration program is designed to prepare graduates for entry-level and assistant management positions in medical settings such as hospitals, clinics, nursing care facilities, doctors? offices, and insurance companies. Health services administrators are often responsible for creating and implementing policy and procedures, hiring and supervising staff, controlling finances, ordering supplies, and coordinating plans and activities with those of other health care managers.
The central focus of the program is to provide a comprehensive base in health-related knowledge and concepts and as well as the management of health services and facilities, with emphases on finance, legal aspects in healthcare, disaster planning and management, and information systems. The Bachelor of Science in Health Services Administration program prepares students to excel in decision-making skills, critical thinking, and small group communications.
Research opportunities and field experiences offer students insight into real-world applications of the information and skills they learn in class and help students prepare to successfully transition into a health care administration or management career.
The Medical Administrative Assistant program offers specialized training in modern medical office procedures. Graduates of the program are prepared for entry-level employment in private medical practices, outpatient departments, clinics, or government institutions. The program offers a foundation in keyboarding, document processing, and integrated office systems software programs with specialized training in medical billing, billing and coding, medical transcription, medical records, and modern medical office procedures. Graduates of this program will be able to apply coding, billing, records management, transcription and scheduling skills to administrative health care industry standards. Students study and practice the skills that will help them gain national billing certification from the American Billing Association (AMBA). Students can prepare for the national test through the Certified Medical Reimbursement Specialist (CMRS) boot camp that is offered along with this degree. Some typical jobs in the medical administrative assistant field include (national salary averages from salary.com): Medical Staff Coordinator ($38,193 - $50,389), Medical Transcription Supervisor ($43,656 - $55,317), Medical Records Administrator ($46,580 - $69,398).
The Medical Reimbursement and Coding (MRC) Program prepares students to sit for the national coding exams, or begin working in the coding and billing field. This unique program is formatted to specifically address, through core courses, a means to facilitate uniformity of terms, the structure and organization of the body systems, common disease processes, and common pharmacological treatments. The core courses provide students with a foundation on which they will complete the coding portion of this comprehensive program. After completing the mandatory core courses, students will have a choice of studying for Physician coding or Hospital/inpatient coding. While some coding professionals choose one type of coding based on their own interest and style, many coders are cross-credentialed and able to work in both arenas. The MRC Program prepares students with the information needed to choose one or both coding paths. Students will study and practice the skills that will help them gain national coding certification from either The American Health Information Management Association (AHIMA) or the American Academy of Professional Coders (AAPC). The comprehensive nature of the MRC Program fulfills all hourly criteria for both AHIMA and AAPC national certifying bodies. Students who successfully complete the MRC Program will be equipped to participate in the field of medical coding and reimbursement.
Bryant and Stratton College is accredited by the Commission on Higher Education of the Middle States Association of Colleges and Schools. This is a regional accrediting agency recognized by the U.S. Secretary of Education and the Commission on Recognition of Postsecondary Accreditation.
|
|
|
|
Western Governor's University
At Western Governors University, your competence - the knowledge and skills you possess - is the ultimate focus of every degree program.
Learn more about programs at Western Governor's University
Become a unique asset in the world of health informatics and health information management. WGU?s B.S. in Health Informatics program combines concepts from healthcare, IT, and leadership practice to provide you with the knowledge and skills to become a valuable designer, developer, and manager of health information systems. This program is for experienced healthcare or IT professionals seeking an affordable bachelor?s degree and two IT certifications to work in this high-demand field.
This flexible, accredited program incorporates two IT certifications at an affordable cost: CompTIA A+ IT Technician and CIW Database Design Specialist (all certification fees are included in your tuition). This program has been designed to align with the American Health Information Management Association?s (AHIMA) curriculum competencies. You may be eligible to apply to sit for the AHIMA Registered Health Information Administrator (RHIA) credentialing exam upon completion of this program.
WGU is the recipient of the USDLA 21st Century Award for Best Practices in Distance Learning for 2008, awarded in recognition of our success in expanding access to higher education. WGU was also recognized by TIME Magazine as the ?best relatively cheap university you?ve never heard of? in the 11/13/08 issue of the periodical.
Enhance your personal status, boost your salary, and increase your job security with WGU?s B.S. in Nursing. This program is for actively working registered nurses (RNs) who hold an associate?s degree or diploma in nursing, possess healthcare industry experience, and can devote 15 to 20 hours per week to their studies.Based on National League of Nursing (NLN) competency standards, the B.S. in Nursing prepares you to become a higher level nurse in hospitals and other healthcare facilities. The program incorporates skills and knowledge beyond the clinical aspects of nursing, integrating patient education, health promotion, nursing roles and values, and technology, as well as healthcare systems and policies into the curriculum. This is a perfect program for RNs with associate?s degrees who want to advance their status and careers. WGU nursing programs are CCNE accredited.
This program is for actively working registered nurses (RNs) who hold a nursing bachelor?s degree (BSN), already possess healthcare industry experience, and can devote 15 to 20 hours per week to their studies.
The M.S. in Nursing?Education Specialization prepares you to become a nurse educator in schools, hospitals, and other healthcare facilities. The program equips you with high-level knowledge and skills while incorporating best practices in policy, organization, and financing; role development; research; advanced nursing practice; and nurse education. This is a perfect program for RNs with BSNs who want to become nurse educators. WGU programs are CCNE accredited.
This program is for actively working registered nurses (RNs) who hold a nursing bachelor?s degree (BSN), already possess healthcare industry experience, and can devote 15 to 20 hours per week to their studies.
The M.S. in Nursing?Leadership and Management Specialization prepares you to become a staff developer or health administrator in schools, hospitals, and other healthcare facilities. The program equips you with high-level knowledge and skills while incorporating best practices in policy, organization, and financing; role development; research; advanced nursing practice; and nurse leadership and management. This is a perfect program for RNs with BSNs who want to become nurse leaders or managers. WGU programs are CCNE accredited.
WGU?s M.S. in Nursing?Education (RN to MSN Option) is for registered nurses (RNs) who hold an associate?s degree, already possess nursing experience, and can devote 20 or more hours to their studies.
This direct RN to MSN option prepares you with bachelor?s- and graduate-level coursework to earn your master?s degree. The program equips you with the skills and knowledge needed to become an effective nurse educator in a variety of healthcare settings. You?ll develop best practices in nurse education, advanced nursing practice, healthcare policy, and the nursing sciences. This is a perfect program for RNs with associate?s degrees who want to become nurse educators.
WGU nursing programs are accredited by the Commission on Collegiate Nursing Education (CCNE).
WGU?s M.S. in Nursing?Leadership and Management (RN to MSN Option) is for registered nurses (RNs) who hold an associate?s degree, already possess nursing experience, and can devote 20 or more hours to their studies.
This direct RN to MSN option prepares you with bachelor?s- and graduate-level coursework to earn your master?s degree. The program equips you with the skills and knowledge needed to move into nursing management or administration. You?ll develop best practices in leadership and management, advanced nursing practice, healthcare policy, and the nursing sciences. This is a perfect program for RNs with associate?s degrees who want to become nurse leaders or managers.
WGU nursing programs are accredited by the Commission on Collegiate Nursing Education (CCNE).
This program is ideal for the self-motivated learner who already possesses healthcare industry experience, seeks in-depth knowledge in management and strategy, and can devote 15 to 20 hours per week to their studies.
The MBA ? Healthcare Management prepares you for mid-level to upper-level healthcare management positions. The program educates you in core business skills, essential industry knowledge, and advanced healthcare managerial expertise. A perfect program for the experienced healthcare administration professional who seeks a credible degree program and upward mobility.
|
|
|
|
Strayer University
Get the right foundation for your future with a degree from Strayer University. Evening, weekend and online classes are all available to meet the needs of busy adults.
Learn more about programs at Strayer University
The Bachelor of Business Administration (BBA) prepares graduates for a wide range of managerial positions in business, government, and non-profit organizations. Business administration students acquire fundamental as well as practical and professional skills in all phases of business, including decision-making and problem-solving.
The BBA program offers area concentrations that enable students to tailor their degrees to their career and educational goals. Specializations are available in: Acquisition and Contract Management, Banking, E-Business, Finance, Hospitality and Tourism Management, Human Resource Management, Legal Studies, Management, Marketing, and Retail Management.
*Programs may vary by state and by campus.
Responds to the needs of current students and employers who are interested in a degree program that prepares students for middle to executive-level managerial positions in the health services industry. The Master of Health Services Administration program is designed to meet the needs of health care professionals and others who wish to obtain the knowledge and skills needed to assume mid-level and executive-level managerial positions in health services organizations. The program will allow these individuals to pursue graduate study without interrupting their careers, thereby avoiding significant opportunity cost.
RThe MBA program offers a broad-based education, with a choice of concentrations. The program features a curriculum that prepares adult students for the emerging knowledge economy while emphasizing the latest concepts, practices, and skills in today?s rapidly changing marketplace. It is designed for working professionals from a wide range of backgrounds who wish to advance or enhance their business careers.
This program offers specializations in the following areas: Accounting, Acquisition, Finance, Health Services Administration, Hospitality and Tourism Management, Human Resource Management, Information Systems Management, International Business, Management, Marketing, Professional Studies, Project Management, and Public Administration.
*Programs may vary by state and by campus
Strayer University is accredited by the Middle States Commission on Higher Education.
|
|
|
|
|
|
|
|
