Career Exploration Series: How to Become a Cost Estimator

What Cost Estimators Do
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 industry or type of product.

Work Environment
Although cost estimators work mostly in offices, they often visit construction sites and factory floors. Some must work overtime to meet deadlines.

How to Become a Cost Estimator
A bachelor’s degree is generally required for someone to become a cost estimator. However, a few highly experienced construction workers may qualify without a bachelor’s degree.

Education
Increasingly, employers prefer candidates who have a bachelor’s degree. A strong background in mathematics is essential.

Construction cost estimators generally need a bachelor’s degree in an industry-related field, such as construction management, building science, or engineering. Those interested in estimating manufacturing costs typically need a bachelor’s degree in engineering, physical sciences, mathematics, or statistics. Some employers accept candidates with backgrounds in business-related disciplines, such as accounting, finance, and business.

Training
Newly hired cost estimators may receive some on-the-job training based on their prior experience. Training often includes learning a company’s cost-estimating software and techniques.

Work Experience in a Related Occupation
Increasingly, employers prefer that cost estimators—particularly those without a bachelor’s degree—have previous work experience in the construction industry. For example, experienced electricians and plumbers can become construction cost estimators if they have the necessary construction knowledge and math skills.

Candidates interested in becoming cost estimators also can gain experience through internships and cooperative education programs.

Licenses, Certifications, and Registrations
Voluntary certification can show competence and experience in the field. In some instances, employers may require professional certification before hiring. The American Society of Professional Estimators, the Association for the Advancement of Cost Estimating International (also known as AACE International), and the International Cost Estimating and Analysis Association each offer a variety of certifications.

To become certified, estimators generally must have at least 2 years of estimating experience and must pass a written exam.

Important Qualities

Analytical skills. Accurately evaluating detailed specifications is crucial to a cost estimator’s success. For example, a cost estimator must determine how to minimize costs without sacrificing quality.

Detail oriented. Cost estimators must pay attention to small details because such details may have a large impact on a product’s overall cost.

Technical skills. Detailed knowledge of industry processes, materials, and costs are vital to estimators. In addition, they should be able to use specialized computer programs to calculate equations and handle large databases.

Time-management skills. Because cost estimators often work on fixed deadlines, they must plan their work in advance and work efficiently and accurately.

Writing skills. Cost estimators must be able to write detailed reports. Often, these reports determine whether or not contracts are awarded or products are manufactured.

Pay
The median annual wage for cost estimators was $58,860 in May 2012.

Job Outlook
Employment of cost estimators is projected to grow 26 percent from 2012 to 2022, much faster than the average for all occupations. Overall job opportunities should be good as cost-conscious firms continue to rely on cost estimates.