If your business doesn’t have the resources to maintain an in-house estimating department, freelance estimators are a great solution. They provide accurate and timely estimates while helping you save money.
Prepare detailed mechanical services estimates with this cost estimating software that includes a material library and on-screen takeoff. It comes with exceptional phone, email and chat support.
Accuracy
Mechanical estimators evaluate the total cost of a construction project. They work with engineers to determine the material, equipment and labor costs needed for a project. They also help those in charge make decisions about the projects they are overseeing. They must have excellent math and communication skills to succeed in this career.
They must also be able to use a CAD system to create accurate drawings of the projects they are estimating. This software helps them make sure they have included all necessary components and compared the different pricing options. They also must be able to highlight non-allowances, excluded bits and conflicting parts. This is helpful for those reviewing the estimates.
Many contractors and subcontractors outsource their estimating services to freelancers. This allows them to save money on overhead and get a higher bid-hit ratio. They can also hire experts on an hourly basis instead of paying them a salary, which is more affordable than hiring a full-time employee. It can also improve their estimating processes and allow them to reduce costs while maintaining quality.
Flexibility
A mechanical estimator works with engineers and other professionals to design and build mechanical systems, including large industrial plants. They must be able to work with complex engineering processes and use computer-aided drafting (CAD) software to create drawings of mechanical equipment.
A career as a mechanical estimator can offer many opportunities for advancement. With experience, they may become project managers or construction managers. They can also find work as independent consultants or freelance cost estimators.
A freelance cost estimator offers more flexibility to construction companies and project managers, allowing them to obtain cost estimating services on an as-needed basis without the cost of hiring a full-time employee. It can be a valuable resource when an existing estimating department is overwhelmed by invitations for proposals or needs a fresh perspective from a third-party expert. In addition, it can save time and money by eliminating the need for costly rework.
Bid-Hit Ratio
When a contractor has a high bid-hit ratio, it means that they get a lot of jobs. This is a good thing but it’s important to know what kind of projects you’re getting. It’s easy to be caught on a bidding treadmill chasing the same kinds of customers and projects. This dilutes your estimating staff and prevents them from focusing on projects that have the highest profit potential.
It’s also important to track your bid-hit ratio by project type, location, owner, build-type, and other data that’s relevant to your company. Having this data will help you determine how many projects your company should go after at any given time and which ones to avoid.
In addition to tracking your bid-hit ratio, it’s also important to track profitability on the projects you do win. This will give you a much clearer picture of the health of your business. If your profitability is declining, you need to find out why and adjust your estimating process accordingly. Otherwise, you might end up in a spiral of decline that’s impossible to break out of.
Reduction in Overheads
As a business owner, you can’t get rid of overhead costs entirely in a healthy growing company, but you can look at ways to reduce them. Indirect costs include salaries and benefits, rent for an office space, and equipment rental. These are all essential to the operation of your business, but they’re not directly attributable to each individual employee or project.
Indirect costs can add up, so it’s important to evaluate each one individually and make sure you’re cutting back where it makes sense without negatively affecting operations. For example, if you’re paying for both a takeoff software platform and an estimating software, consider if there are other tools that could replace these and save you money in the long run.
A freelance mechanical estimator will be able to provide you with cost estimates on an as-needed basis, saving your company a significant amount of upfront investment and running costs. By outsourcing this work, you can cut the estimating department cost from your business and reduce expenses that can impact profit margins in a challenging economy.
Independent Third-Party Opinion
A freelance mechanical estimator is a valuable asset to any construction project. They can help resolve disputes that arise between teams or even assist in uncovering hidden costs of the project. They can also help reduce the stress associated with bidding and other deadlines by providing an independent unbiased opinion.
The primary qualifications for a career as a mechanical estimator include a degree or equivalent work experience. They should have excellent budgeting skills and be able to work well under pressure. Many mechanical estimators work in an office setting, but they may need to travel to job sites and work overtime to meet deadlines.
A freelance mechanical estimator can save your company time and money by preparing detailed estimates for the cost of materials, labor, and other aspects of large projects like high-rise construction or product manufacturing. They can also help you meet bid deadlines and ensure that your estimates are accurate. These services are especially beneficial for smaller contractors and startups that can’t afford to invest in estimating software or hire full-time staff to prepare estimates.