What Cost Estimators Do
Cost estimators collect and analyze data in order to estimate the time, money, materials, and labor required to make a product or provide a service.
Work Environment
Cost estimators work mostly in offices, and some estimators also visit construction sites and factory assembly lines. Most work full time.
How to Become a Cost Estimator
Most cost estimators need a bachelor’s degree, although some workers with several years of experience in construction may qualify without a bachelor’s degree.
Pay
The median annual wage for cost estimators was $65,250 in May 2019.
Job Outlook
Employment of cost estimators is projected to decline 1 percent from 2019 to 2029. Cost estimation software is improving the productivity of these workers, requiring fewer estimators to perform the same amount of work.
Cost estimators collect and analyze data in order to estimate the time, money, materials, and labor required to manufacture a product, construct a building, or provide a service. They generally specialize in a particular product or industry.
Duties
Cost estimators typically do the following:
- Identify factors affecting costs, such as production time, materials, and labor
- Read blueprints and technical documents in order to prepare estimates
- Collaborate with engineers, architects, clients, and contractors
- Calculate, analyze, and adjust estimates
- Recommend ways to reduce costs
- Work with sales teams to prepare estimates and bids for clients
- Maintain records of estimated and actual costs
Accurately estimating the costs of construction and manufacturing projects is vital to the survival of businesses. Cost estimators provide managers with the information they need in order to submit competitive contract bids or price products appropriately.
Estimators analyze production processes to determine how much time, money, and labor a project needs. Their estimates account for many factors, including allowances for wasted material, bad weather, shipping delays, and other variables that can increase costs and lower profits.
In building construction, cost estimators use software to simulate the construction process and evaluate the costs of design choices. They often consult databases and their own records to compare the costs of similar projects.
The following are examples of types of cost estimators:
Construction cost estimators prepare estimates for buildings, roads, and other construction projects. They may calculate the total cost of building a bridge or commercial shopping center, or they may calculate the cost of just one component, such as the foundation. They identify costs of elements such as raw materials and labor, and they may set a timeline for how long they expect the project to take. Although many work directly for construction firms, some work for contractors and engineering firms.
Manufacturing cost estimators calculate the costs of developing, producing, or redesigning a company’s goods or services. For example, a cost estimator working for a home appliance manufacturer may determine a new dishwasher’s production costs, allowing managers to make production decisions.
Other workers, such as operations research analysts and construction managers, may also estimate costs in the course of their usual duties.
Cost estimators held about 214,200 jobs in 2019. The largest employers of cost estimators were as follows:
| Specialty trade contractors | 36% |
| Construction of buildings | 17 |
| Manufacturing | 13 |
| Automotive repair and maintenance | 7 |
| Heavy and civil engineering construction | 6 |
Cost estimators work mostly in offices, and some estimators visit construction sites and factory assembly lines during the course of their work.
Work Schedules
Most cost estimators work full time and some work more than 40 hours per week.
This table shows a list of occupations with job duties that are similar to those of cost estimators.
| Occupation | Job Duties | Entry-Level Education | Median Annual Pay, May 2019 | |
|---|---|---|---|---|
Accountants and Auditors |
Accountants and auditors prepare and examine financial records. |
Bachelor’s degree | $71,550 | |
Budget Analysts |
Budget analysts help public and private organizations plan their finances. |
Bachelor’s degree | $76,540 | |
Claims Adjusters, Appraisers, Examiners, and Investigators |
Claims adjusters, appraisers, examiners, and investigators evaluate insurance claims. |
See How to Become One | $66,540 | |
Construction Managers |
Construction managers plan, coordinate, budget, and supervise construction projects from start to finish. |
Bachelor’s degree | $95,260 | |
Financial Analysts |
Financial analysts provide guidance to businesses and individuals making investment decisions. |
Bachelor’s degree | $81,590 | |
Financial Managers |
Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization. |
Bachelor’s degree | $129,890 | |
Industrial Production Managers |
Industrial production managers oversee the daily operations of manufacturing and related plants. |
Bachelor’s degree | $105,480 | |
Logisticians |
Logisticians analyze and coordinate an organization’s supply chain. |
Bachelor’s degree | $74,750 | |
Operations Research Analysts |
Operations research analysts use advanced mathematical and analytical methods to help solve complex issues. |
Bachelor’s degree | $84,810 |
For more information about cost estimators, visit
American Society of Professional Estimators
Association for the Advancement of Cost Engineering International (AACE International)
International Cost Estimating and Analysis Association
O*NET
Suggested citation:
Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Cost Estimators,
at https://www.bls.gov/ooh/business-and-financial/cost-estimators.htm (visited ).
