How to Become a Cost Estimator

In order to become a cost estimator, in most cases you will need to have a bachelor’s degree and experience in the field to successfully compete in what is currently a highly competitive job market. In this article, you will learn the quickest and most effective ways to realize your dream of becoming an in-demand cost estimator.

Education For Cost Estimator

While there are some opportunities to become a professional cost estimator without a college degree, those jobs are limited and not as desirable as the positions open to those with a bachelor’s degree. As mentioned before, the current climate in this industry is highly competitive (see Job Outlook section), and those with degrees in a related field will most likely be chosen for the finite openings.  Decide to invest in yourself and your future by considering earning your bachelor’s degree. Begin now to research your options in terms of universities and colleges. There are a number of well-known and respected institutions of higher education which offer both on-campus and online degrees. The key is to make sure the college is accredited. When an institution is accredited, it means the college or university has maintained rigorous academic standards and has received the stamp of approval from one or more of the following agencies:

1. Northwest Commission on Colleges and Universities (NWCCU)
2. Western Association of Schools and Colleges (WASC)
3. New England Association of Schools and Colleges (NEASC)
4. Middle States Commission on Higher Education (MSCHE)
5. Southern Association of Colleges and Schools (SACS)

Accreditation also paves the way for receiving federal financial aid. In other words, certain grants and loans will not be available to you if you choose to attend a non-accredited school.

There are online programs which offer degrees, many of which are offered by well-known, prestigious schools. However, without accreditation, the degree will not effectively help you to become a successful cost estimator. As with the traditional on-campus colleges, make sure any online program has the necessary mark of approval from one or more of the accrediting agencies.  

If you cannot financially afford to attend a four-year college or university, consider attending a community college to complete the universal general education requirements. Do your due diligence, and make sure the units from the community or junior college will be accepted or transferable at the universities you are considering for your final and degree-granting years. 

Here are some examples of two degrees which will prepare you for the world of cost estimating:

1. Bachelor’s Degree in Construction Management

One of the pivotal positions within the construction industry is that of the project manager, otherwise known as a construction manager. The project manager is responsible for cost analysis and overseeing the planning, design, construction, and completion of a construction project. Construction managers are responsible for coordinating and supervising all aspects of the project to ensure it is completed safely, on schedule, within budget, and to the required quality standards.

A degree in construction management will teach you the intricacies of project planning, resource management, contract management, risk management, quality control, safety management, and various aspects of how to communicate with project stakeholders.

2. Bachelor’s Degree in Engineering

Consider entering a bachelor’s program in civil engineering, mechanical engineering, electrical engineering, or other related engineering fields. The reasons an engineering degree prepares you for a job as a cost estimator are:

3. You will acquire technical knowledge related to construction, manufacturing, or engineering projects which will prepare you to determine project requirements, materials, and labor needs, leading to more precise cost estimates.
4. An engineering degree will hone your analytical skills because engineers are trained to analyze complex problems and data, essential for cost estimation. By the time you are done with your degree you will be able to break down project components, evaluate alternatives, and quantify costs effectively. You will also have a keen understanding of the importance of attention to detail.
5. Bachelor’s degrees in engineering focus on interpreting technical drawings. In order to be good at your job as a cost estimator, you will need to become proficient in interpreting technical drawings, blueprints, and specifications, because they are essential for understanding project scope and estimating material quantities and costs accurately.

Experience For Cost Estimators

Have you ever heard the expression, “It’s a catch-22 situation”? The dictionary according to Merriam-Webster defines a catch-22 situation as, “A problematic situation for which the only solution is denied by a circumstance inherent in the problem or by a rule.” In other words, how can you get experience as a cost estimator, when no one will hire you unless you already have experience as a cost estimator? Well, there are solutions to this dilemma. If you browse the job listings for cost estimators, employers are currently asking for a minimum of 3 years of experience. How can you meet this challenge?  Get admitted to an internship program. 

Internships are available for aspiring cost estimators who are earning their bachelor’s degree or have just completed it and graduated. Getting an internship means getting your proverbial foot in the door. Although they typically only last between 6-10 weeks, two things will happen. First, you will be able to show the employer how talented you are, and how well you perform in the cost estimating environment. Second, you may actually circumvent the experience requirement and be offered an entry-level position for one very important reason: the reason companies have internships is to groom future candidates for their upcoming positions. Here are some companies who do or have offered internships in the field:

1. Construction Companies

Large construction firms like Turner Construction, Skanska, and Gilbane Building Company often offer internships in cost estimation. These internships provide hands-on experience in estimating construction costs for projects ranging from commercial buildings to infrastructure projects.

2. Engineering Firms

There are engineering consulting firms such as AECOM, Jacobs Engineering Group, and HDR who have offered internships in cost estimation. Some of the things that interns do involve estimating costs for engineering projects such as transportation infrastructure, environmental remediation, or water resources management.

3. Manufacturing Companies 

Internships involving cost estimation are offered by a number of prestigious manufacturing companies which are found in categories such as aerospace, automotive, and consumer goods. These companies include Boeing, General Motors, and Procter & Gamble. In these programs interns may assist in estimating manufacturing costs for new products or process improvements.

4. Agencies within Local, State and Federal Governments  

The U.S. Army Corps of Engineers, state departments of transportation, and municipal engineering departments, have historically had internships which would give a future cost estimator valuable experience.

5. Large Architectural Firms 

If there is a large architectural firm which is geographically suitable for you, find out if they offer internships that involve cost estimation, particularly for projects in the design and planning stages. Discuss with them how you may assist in estimating construction costs based on architectural drawings and specifications. Two examples of companies which have historically been involved with internships are HOK and Perkins Eastman.

6. Energy-Related Companies

Find out if there are companies in your area within the utilities and energy arenas, such as power generation companies or renewable energy developers, who are currently engaging candidates for internship programs. Companies like Duke Energy, NextEra Energy, and Siemens Energy have previously offered internships in cost estimation regarding infrastructure projects. 

Job Outlook for Cost Estimators

According to the U.S. Bureau of Labor Statistics (https://www.bls.gov/), Cost Estimators will be competing for limited positions, for the time period spanning 2022-2032. The field is declining by 3% per year, which means you will be entering a highly competitive job market. However, in spite of the decline, government experts predict that each year over 18,000 openings will become available (between 2022-2032), due to replacing workers who leave the profession, leave the work force and/or retire. Over the ten-year time span (2022-2032) it is projected that in spite of the vacated positions, there will be an overall loss of 6,500 cost estimator jobs. In 2022 there were 231,400 individuals working as cost estimators. The median pay per year was $71,200, while the median hourly wage was $34.23. (As a reminder, the “median” amount is not an average, it is the middle value of a dataset. For the U.S. BLS definition go to: https://www.bls.gov/cps/definitions.htm#medianearnings).

By pursuing your education and gaining experience in the field, you will be on your way to beating the competition and becoming a successful cost estimator.