When Should Contractors Outsource Estimating?
Construction estimating can become a demanding part of running a contracting business. As project enquiries increase, contractors often need to review drawings, prepare quantity takeoffs, price labour and materials, check specifications and submit tenders within tight deadlines.
So, when should contractors outsource estimating?
Outsourcing can make sense when your internal team is overloaded, tender deadlines are approaching, or projects require more estimating support. It can also help when maintaining a full-time estimating team is not practical. However, the right approach depends on your workload, project requirements, budget and available expertise.
What Does Construction Estimating Involve?
Construction estimating involves much more than adding up material prices.
For example, a professional estimate may include:
- Reviewing drawings and specifications
- Measuring quantities
- Preparing material takeoffs
- Calculating labour requirements
- Pricing labour and materials
- Allowing for plant and equipment
- Reviewing the project scope
- Preparing bills of quantities
- Identifying exclusions and assumptions
- Supporting tender and bid preparation
- Checking the estimate before submission
As a result, the process can take considerable time when contractors are handling several projects at once.
Accurate estimating also requires careful attention to drawing revisions, specifications, local pricing and the full scope of work. Even a small mistake during the estimating stage can affect the final tender price and project profit.
7 Signs That Contractors Should Consider Outsourcing Estimating
There is no single point at which every contractor should outsource estimating. However, several common situations can show that additional support may be useful.
1. Your Estimating Team Is Overloaded
One of the clearest signs is a growing estimating workload.
For instance, your team may be reviewing several tender opportunities at the same time. When that happens, important estimates can compete for the same resources.
As the workload increases, rushed takeoffs or pricing can lead to missed quantities, incorrect assumptions or incomplete scope reviews.
Therefore, external estimating support can provide extra capacity when your internal team has too much work.
2. You Are Missing Tender Deadlines
Construction tenders often have fixed submission dates.
When several opportunities arrive together, your team may struggle to complete every estimate on time. Missing a tender because there was not enough estimating capacity can also mean losing a potential project.
In this situation, outsourced estimating can help contractors manage additional tender work without immediately expanding their permanent team.
3. You Need Estimating Expertise for a Specific Project
Some construction projects require specialist knowledge.
For example, a contractor may be comfortable estimating general building work but need additional support for a project involving structural, mechanical, electrical, civil or infrastructure work.
In such cases, external estimating support can complement your existing knowledge. At the same time, you avoid hiring a permanent specialist for a short-term requirement.
4. Your Business Has an Unpredictable Tender Workload
Estimating demand does not always stay the same throughout the year.
A contractor may receive several tenders one month and far fewer opportunities the next. Consequently, hiring a full-time estimator for occasional workload peaks may not always be practical.
Instead, outsourcing can provide a flexible way to increase estimating capacity when project demand rises.
5. You Are Spending Too Much Time on Takeoffs
Quantity takeoffs can take a significant amount of time.
Estimators may need to measure walls, floors, doors, windows, concrete, reinforcement, finishes, fixtures and other construction elements from drawings and specifications.
If contractors spend too much time completing measurements, less time remains for bidding decisions, client communication and project planning.
For this reason, outsourcing takeoffs can help internal teams focus on higher-value tasks.
6. Your Estimates Are Inconsistent
Estimates can become inconsistent when different team members use different methods, assumptions or pricing approaches.
A clear estimating process can improve consistency by defining:
- Measurement methods
- Pricing sources
- Assumptions
- Exclusions
- Labour calculations
- Material allowances
- Review procedures
Furthermore, external estimating support can provide another review layer before a tender is submitted.
7. You Are Not Ready to Hire a Full-Time Estimator
Hiring an in-house estimator involves more than salary.
You may also need to consider recruitment, employment costs, software, equipment, training and ongoing workload.
For businesses that only need extra estimating capacity during busy periods, outsourcing can therefore provide a more flexible option.
In-House vs Outsourced Construction Estimating
Both approaches can work well. The better choice depends on your workload, project requirements and business model.
| Factor | In-House Estimating | Outsourced Estimating |
|---|---|---|
| Permanent workload | Suitable | Less necessary |
| Short-term workload increase | May require extra staff | Flexible |
| Recruitment required | Yes | No additional employee recruitment |
| Specialist support | Requires internal expertise | Can be sourced externally |
| Tender workload peaks | Additional capacity may be needed | Easier to scale |
| Internal control | High | Requires clear communication |
| Long-term estimating department | Strong option | Can complement internal team |
| Occasional estimating requirements | Potentially expensive | Often more flexible |
However, the decision does not have to be either-or.
Many contractors can use an internal team for core estimating while outsourcing additional work during busy tender periods.
What Can Contractors Outsource?
Outsourcing does not always mean handing over the entire estimating process.
Depending on the project and provider, contractors can outsource individual services such as quantity takeoffs, material takeoffs, BOQ preparation or tender estimating.
Quantity Takeoffs
A quantity takeoff identifies the amount of materials and work items shown in project drawings and specifications.
Depending on the project, this may include:
- Concrete
- Masonry
- Structural elements
- Drywall
- Flooring
- Roofing
- Doors and windows
- Finishes
- Mechanical systems
- Electrical systems
- Civil and site works
A detailed takeoff gives contractors a clearer view of the quantities required before pricing begins.
Material Takeoffs
Material takeoffs focus on identifying the materials needed for a construction project.
As a result, contractors can use the information to understand expected material requirements before preparing project costs.
Labour Estimating
Labour estimating considers the workforce and time needed to complete project activities.
However, labour costs can vary based on project type, location, productivity and scope. Therefore, the estimate should reflect the specific requirements of the project.
Bill of Quantities Preparation
A bill of quantities organises project work into measurable items and quantities.
This information can support tender preparation, cost planning and procurement. It can also give contractors a clearer structure for reviewing project costs.
Tender Estimating
Tender estimating brings together quantities, labour, materials, project requirements and commercial considerations to support a bid submission.
Contractors can outsource specific parts of this process or use external estimating support for a larger part of the estimating workflow.
When Is Outsourcing Better Than Hiring In-House?
Outsourcing can be useful when estimating demand changes throughout the year.
For example, imagine that a contractor receives eight tender opportunities within a short period. The existing estimating team may not have enough capacity to complete every estimate to the required standard.
Hiring another full-time employee could solve the immediate problem. However, the business may not have enough estimating work to justify that permanent position later.
In comparison, external estimating support can provide additional capacity when it is needed. This approach can also help contractors keep their internal structure more flexible.
On the other hand, businesses with a consistently high estimating workload may benefit from building a dedicated in-house estimating team.
How Much Does Outsourced Construction Estimating Cost?
There is no single price for outsourced construction estimating.
The final cost can depend on:
- Project size
- Project complexity
- Number of drawings
- Number of trades
- Level of detail required
- Quantity of work
- Type of estimate
- Required turnaround
- Pricing requirements
- Whether takeoffs, BOQs or complete estimates are required
For example, a small single-trade takeoff requires a different level of work from a large commercial project involving several disciplines.
Therefore, contractors should compare providers based on scope, deliverables, accuracy, turnaround and experience, rather than choosing only the lowest quote.
What Documents Does an Estimator Need?
The quality of an estimate partly depends on the information provided.
Depending on the project, an estimator may need:
- Architectural drawings
- Structural drawings
- Mechanical drawings
- Electrical drawings
- Civil drawings
- Specifications
- Schedules
- Scope of work
- Tender documents
- Addenda
- Previous project information
- Pricing requirements
Most importantly, contractors should provide the latest drawing revisions.
If an estimator works from outdated drawings, the quantities and costs may not reflect the current project scope. As a result, the final estimate may need further changes.
How Outsourcing Can Support Contractors
When managed properly, external estimating can support contractors in several ways.
More Estimating Capacity
Additional support can help businesses process more tender opportunities without immediately increasing permanent staffing.
More Time for Business Development
Contractors can spend less time measuring drawings and more time reviewing opportunities, communicating with clients and planning projects.
Support During Busy Periods
External estimators can supplement internal teams when several tenders arrive at the same time.
Access to Additional Expertise
A contractor can use specialist estimating support when a project requires knowledge that is not available internally.
Flexible Workload Management
Outsourcing can allow estimating capacity to increase or decrease according to project demand.
How to Choose an Outsourced Estimating Service
Choosing an estimating provider should involve more than comparing prices.
Before assigning a project, contractors should consider the following points.
1. Relevant Experience
First, check whether the provider has experience with projects similar to yours.
Relevant experience can make it easier to understand project requirements and identify important details.
2. Clear Deliverables
Next, ask exactly what will be provided.
For example, the service may include:
- Quantity takeoff
- Material schedule
- Labour quantities
- BOQ
- Cost estimate
- Tender estimate
- Assumptions and exclusions
Clear deliverables can prevent confusion later in the project.
3. Turnaround
Always confirm the expected delivery date before starting the project.
This is particularly important when the estimate is required for a tender with a fixed submission deadline.
4. Communication
The estimator should have a clear process for handling questions, drawing revisions and missing information.
Good communication can reduce delays and make the estimating process easier to manage.
5. Quality Control
Ask how estimates are reviewed before delivery.
A clear checking process can help identify missing quantities, errors and inconsistencies before the estimate reaches the contractor.
6. Software and File Formats
Make sure the provider can work with the drawings and file formats used by your business.
This can help avoid unnecessary conversion work and delays.
7. Confidentiality
Project drawings, pricing information and tender documents can be commercially sensitive.
Therefore, contractors should understand how project information is handled and protected before sharing documents.
When Should Contractors Keep Estimating In-House?
Outsourcing is not always the best option.
Keeping estimating in-house may make sense when:
- Estimating workload is consistently high
- You already have experienced estimators
- Projects require constant internal communication
- You need direct control over every estimate
- Your company has established estimating systems
- You have enough long-term workload to support a permanent team
Even so, a hybrid approach can work well.
For example, a contractor could keep complex commercial decisions in-house while using external support for quantity takeoffs and additional tender workload.
When Should Contractors Outsource Estimating?
The strongest reason to outsource is usually capacity.
If your team is consistently overloaded, tender deadlines are being missed, takeoffs are taking too long, or you need additional estimating expertise, external support may be worth considering.
Outsourcing can also make sense when your workload is unpredictable and hiring a permanent estimator would create unnecessary fixed costs.
Ultimately, the goal should be to solve a genuine business problem rather than outsource simply because it is a popular option.
A Simple Decision Checklist
Contractors can use these questions to assess their current situation:
- Are we receiving more tenders than our team can handle?
- Are estimating deadlines becoming difficult to meet?
- Are quantity takeoffs taking too much internal time?
- Are we turning down tender opportunities because of limited capacity?
- Do we need specialist estimating knowledge?
- Is our estimating workload too inconsistent for another full-time employee?
- Are estimates being completed too quickly because of workload pressure?
- Would additional estimating support allow our team to focus on higher-value work?
If several answers are yes, outsourced estimating may be worth evaluating.
Why Fast Estimator Can Support Your Estimating Workflow
Fast Estimator provides construction estimating and quantity takeoff support for contractors and construction businesses.
The service can support different stages of the estimating process, from quantity measurement and takeoffs to detailed cost estimating and tender preparation.
For contractors facing a temporary workload increase, tight tender deadlines or a need for additional estimating capacity, external support can complement an existing internal team.
The right solution depends on your project requirements, drawings, scope and deadline.
Frequently Asked Questions
Is outsourcing construction estimating worth it?
Outsourcing can be worthwhile when contractors have a high or unpredictable estimating workload, limited internal capacity, tight tender deadlines or a need for specialist estimating support.
What are the benefits of outsourcing construction estimating?
Potential benefits include additional estimating capacity, flexible workload management, access to specialist support and more internal time for project management and business development.
Should small contractors outsource estimating?
Small contractors may benefit from outsourcing when they do not have enough consistent estimating work to justify a full-time estimator or when several tenders arrive at the same time.
Can contractors outsource only quantity takeoffs?
Yes. Contractors can outsource individual parts of the estimating process, such as quantity takeoffs, material takeoffs or BOQ preparation, depending on the provider and project requirements.
Is outsourced estimating cheaper than hiring an estimator?
It depends on the workload, project requirements and pricing model. Contractors should compare the total cost of an in-house employee with the cost and flexibility of external estimating support.
What information does an outsourced estimator need?
An estimator will generally need the latest drawings, specifications, schedules, scope information and tender documents relevant to the project.
Can outsourced estimators work with an in-house estimating team?
Yes. External estimators can supplement an internal team by handling additional takeoffs, estimates or tender workloads while the internal team manages commercial decisions and project strategy.
How early should contractors involve an estimator?
Ideally, estimating support should be involved once the tender documents and project information are sufficiently developed. Early involvement provides more time to review the scope, identify missing information and address quantity or pricing issues before submission.
Conclusion
Contractors should consider outsourcing estimating when their internal team no longer has enough capacity to manage the workload efficiently.
Missed tender deadlines, growing project enquiries, time-consuming quantity takeoffs, inconsistent workloads and a lack of specialist expertise are all potential signs that external support could help.
Importantly, outsourcing does not have to replace an internal estimating team. Instead, it can work alongside existing staff and provide additional capacity when the workload increases.
For contractors, the best approach is to choose an estimating model that matches their actual workload, project requirements and long-term business goals.
Explore Fast Estimator.