Too many estimators can spoil a construction company’s quotes. Instead of each estimator using individual estimating methodologies, estimators would be better off using one method and contributing to the business in other ways, according to an article on Construction Executive’s website.
Estimators can be used more effectively by directing their creativity and time to specific tasks such as job cost histories by cost codes. Cash flow needs can be built into the contracts and shared with the project operations team so potential trouble areas can be discussed.
Job costing software needs to be a repository of project history and a guide for future projects. If you know the estimated costs, you must be able to collect costs and calculate the budgeted margin and the actual margin.
This way, you have an accurate picture of how well each estimator’s methodology is working. Most systems will give you the ability to break down cost codes to any level you need. Then you can attach budgets and reflect change orders for revenue, costs and hours.
Being able to collect costs and hours on a timely basis is the next important step. Daily reporting tools are the only way to keep the projects headed in the right direction.
Source: Construction Executive, August 2012