Outsourcing your construction estimating can be a game-changer for your business, but knowing how to do it effectively is crucial.
Before construction estimating become completely outsourced by Ai, you might consider outsourcing it to reduce your overhead, cost per bidding a job and be able to quickly ramp up bidding when they all hit you at once.
It also provides more flexibility so that you can quickly ramp up bid your bidding without having the overhead of full-time employees.
We all know how important it is to bid new jobs and do it fast and accurately, even if we don’t win them all but it can also cost a lot of your teams time.
Outsourcing your construction estimating is a great way to save money while being able to consistently provide accurate bids to your customers, increasing your construction sales.
Here’s a step-by-step guide to help you navigate this process.
1. Determine Your Estimating Needs
First, identify what kind of estimator you need. Outline the types of projects and scopes they will be bidding on.
It’s important to find an estimator specializing in the construction types you handle, so be clear about your requirements.
Determine where they fit into your estimating process. Are you looking for someone to handle the entire process or just specific parts of it?
2. Decide on Full or Partial Outsourcing
You can choose to outsource just your quantity takeoffs or the full estimating process. Tommy Lather, who runs a takeoff services business, recommends outsourcing quantity takeoffs because it’s a relatively straightforward task compared to the rest of estimating.
This allows your in-house estimators to focus on strategy, crunch the numbers, and finalize proposals, making the best use of their time.
Knowing your own numbers is crucial for providing accurate estimates and winning profitable projects
If you want to completely outsource your estimating, make sure you provide labor and material numbers you have.
Determine which ones need to be researched or leave the final calculation to your team who will be sourcing vendors.
3. What to Look for in Your OutsourcedEstimator
Investigate the setup of their team and their estimating experience.
Outsourcing part of the estimating process overseas can be cost-effective, but fully outsourcing it might reduce the quality of estimates.
The best setups often combine overseas teams for cost efficiency and US-based teams for strategic insights.
Ensure they have a clear process that aligns with your own.
Make sure to ask about their process, team, and experience.
Always ask for references and speak with them to gauge their satisfaction.
4. Research Estimators Online or Ask for References
Use Google, ask for recommendations on Facebook, or reach out to other contractors who use takeoff or estimating companies.
Estimating is a really important part of your business, so do your research before making that decision.
Gathering as much information as possible will help you make an informed decision.
After you have done your research, list a few options and write down the pros and cons of each.
5. Explore and Choose a Company or Construction Estimating Freelancer
At the end of the day, you’ll need to try out different options to see how outsourced estimators fit into your company.
This hands-on experience will give you a better understanding of what works best for your business.
Choose the estimating company that provides the right mix of value and being cost effective as well as is in alignment with your needs and expectations.
6. Understand How Outsourced Estimators Get Paid
There are usually three types of pricing models:
- Hourly Rates: Some estimators charge by the hour and it can be anywhere from $20 - $75 per hour to hire them.
- Project Value-Based Rates: Others charge based on the dollar value of your project. For example, they might charge $1 per $1,000 of a bid, so a $1,000,000 project might cost $1,000.
- Flat Rates: Companies like Takeoff Monkey charge a flat rate per takeoff.
Choosing the right pricing model depends on your specific needs and the scope of your projects.
What's next?
Outsourcing construction estimating can streamline your operations, allow you to be more competitive with your bids, and win more projects.
By following these steps, you can find the right fit for your needs and ensure your bids are accurate and cost-effective.
