Decoding the Roles of Estimators and Cost Planners in Construction: Expertise, Origins, and Strategic Contributions

Many construction estimating and development companies boast the expertise of estimators and cost planners, whether as in-house employees or contracted professionals.

In the Australian construction landscape, estimators and cost planners typically emerge from distinct sectors of the industry. While this is a broad observation, estimators often have roots in contracting, while cost planners often trace their origins back to quantity surveying.

It’s important to note that this doesn’t mean a cost planner lacks estimating skills or vice versa. Larger development and construction firms may have cost experts adept in both estimating and cost planning.

So, why the distinction?

Estimators commonly kickstart their careers with sub-contractors or head contractors, gaining hands-on experience predominantly in the building sector. Their backgrounds may vary, spanning construction management, trades, quantity surveying, or even engineering (civil and services).

Estimators typically need relatively advanced design documentation to provide accurate cost estimates. They usually aren’t involved in the early design phases, encountering design documents only when preparing tenders or contract prices.

An estimator compiles construction costs using a mix of market pricing, budget allowances, or PC Sums. They employ first principle price-buildup (labor, materials, plant) or may price Bills of Quantities prepared by a Quantity Surveyor. Additionally, they create preliminary budgets and develop contingencies based on design and market risk. Their expertise lies in comprehending market conditions, managing relationships with suppliers and sub-contractors, understanding program dynamics, cash-flow, constructability, and demonstrating strong organizational abilities.

There’s a delicate balance between submitting a competitive contract price and avoiding losses due to underpricing.

Cost planners typically commence their careers with quantity surveying (QS) firms, gaining exposure to various QS services and expertise across construction facets, including contracts, risk management, and market dynamics. They may provide initial budgets or indicative costs based on minimal design information.

During the design progression, cost planners update cost plans at various milestones. They collaborate with the design team, offering value engineering options to control costs and align the project with the budget and client’s brief. After the final design stage, a cost planner may transition into the role of a project estimator.

Once the design is finalized and ready for tender release, the estimator compiles the contract price, whether in the form of a lump sum offer, guaranteed maximum price, design and construct price, etc. Post-tender success, the cost planner/estimator might remain involved in the delivery phases, addressing budget issues, variations, costing design changes, valuating PC Sum adjustments, monitoring cash flow, and gathering data for future projects.