Pros and Cons of Outsourcing Your Construction Estimating

Outsourcing your construction estimating may seem like a new concept, but it has been around for years. Many businesses are hesitant to outsource work because they feel they can do it better and cheaper themselves but is that really the case? Outsourcing offers many benefits that you may not have considered before. Read on to learn more about the pros and cons of outsourcing your construction estimating.

outsourced construction estimator on-site
How Does Outsourcing Construction Estimating Work?

If you are considering outsourcing your construction estimating, you may wonder what this looks like. An experienced outsourcing company will use an arrangement that maximizes efficiency while providing you with high-quality output. The aspects of such an arrangement may include:

  • Your outsourcing partner recruits and vets estimators based on your unique requirements, such as certifications, years of experience, software proficiency, and industry experience
  • Dedicating junior estimators to perform quantity take-offs
  • Allowing senior estimators to focus their efforts on creating estimates
  • Your off-site estimators working for you full-time in a similar manner as any other off-site employees you manage
  • Your business having the flexibility to increase or reduce your construction estimating personnel monthly

Pro #1 — Reduced Costs

When you outsource your construction estimating, you avoid costs incurred by employing full-time estimators in-house. These costs include recruiting, interviewing, hiring, onboarding, and initial training.

You can also benefit from reduced costs by not needing to provide equipment such as computers for your outsourced estimators. Similarly, you do not have to allocate office space or provide a physical workspace.

Pro #2 — A Specialized Team of Estimators

By outsourcing construction estimating, you can be sure you have experienced estimators on your team, right from the start. Outsourcing allows you to have a designated for this specific aspect of your business, without needing to worry about steep learning curves as new employees become adjusted. You can trust in a team specialized in construction estimating.

Pro #3 — Ability to Submit More Bids

When your cost to prepare each bid is reduced, you can submit more bids for the same overall cost. In addition, when you outsource your construction estimating, you are no longer limited by the capacity of your in-house estimating team. These factors can lead to a greater number of your bids being selected.

Pro #4 — Flexible Contracts

It can be difficult to project your construction estimating workload accurately. As a result, you may end up with one of two situations that are less than ideal.

One possibility is that you underestimate your need. When this happens, your existing staff may have to pick up the slack, resulting in heavy workloads and burnout. This can also lead to errors in estimates due to reduced rest and an effort to work overly fast on each task.

The other case that could occur is that you overestimate your need. You might end up with personnel that are sitting idle. In such a case, you would pay the overhead cost to keep them on the payroll without gaining any benefits from what you’re spending.

When you outsource construction estimating, you can benefit from month-to-month contracts. This means you do not have to project your needs for a certain amount of time into the future. You can dynamically adjust to only use, and pay for the personnel you need.

Con #1 — You May Feel Uncomfortable Initially

Habits can take time to change, especially when it involves a business you’ve worked hard to build. When it comes to making the transition to outsource your construction estimating, you may feel some hesitation in turning to a method that is new and unfamiliar to you. We understand that.

Whether you were closely involved in each step of the construction estimating process or are accustomed to having someone nearby dedicated to that role, it is natural for you to experience an adjustment period while settling into a new process such as outsourcing. It is important to keep the benefits of what you’re doing this for in mind.

Connect with Peak Outsourcing Today

If you’re looking for a construction estimating company to help your business grow, look no further than Peak Outsourcing. Our team is equipped to help you meet your business goals and needs.

If you’d like more information or have questions regarding business process outsourcing, don’t hesitate to call 1-833-831-7325 to speak with a member of the Peak Outsourcing team today. We can help you understand your options so that you can make the best choice for your company as it continues to grow.

Is Business Process Outsourcing Right for Your Business?

Your company may benefit from outsourcing certain functionality that you currently perform in-house. The resulting benefits can transform the way you do business and provide a greater focus on your core business functions.  Submit a contact form or call Peak Outsourcing today at 1-833-831-7325 to discuss how our team can help you achieve your goals.

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Patrick Freking
Connect with Patrick

Patrick Freking

Owner

Pat has built a long and varied career across multiple areas. He graduated with a BS in Finance from Arizona State University and got his start in the business world as a healthcare consultant for some of the largest hospitals in the world, including St. Luke’s Episcopal in Houston, TX and Brigham and Women’s Hospital in Boston, MA.

Pat then ventured into the banking industry, gaining vast knowledge of all facets of commercial and retail lending. Following this, Pat built on his depth of sales skills and worked as an enterprise representative, selling Oracle applications and software implementations to Fortune 500 companies, as well as he had the opportunity to represent an accounting firm focused on the implementation of Sarbanes Oxley regulations.

In 2004, Pat started his own real estate development and management company. Over the years he developed and managed multiple commercial properties throughout Arizona and Texas. It was then that Pat sought out the resources of third party outsourcers for many support functions of his business and grew to understand how important these operations were to the success of his own company.

Pat believes the key to his success has been choosing to build his businesses with strong partners. “The one thing I am certain of is that businesses are only as solid as the teams that build them. You have to trust and genuinely believe in the people you put in front of your customers. It’s my commitment that Peak’s partnership with your business will be one you can depend on”.