3 Key Ways to Elevate Your Estimating Process

While estimators are among the highest-paid professionals in the industry, estimating is a skill that often goes undertrained. In addition, many managers struggle to hold estimators accountable — they sometimes fear an estimator’s understanding of the software is too valuable to lose. But good estimation is critical to success. All too often, a poorly prepared estimate starts out the production process on the wrong foot.

Setting clear objectives for estimators will lead to more consistent outcomes — not only in estimating, but also the production process. Consistently top-performing organizations take a holistic approach and view estimating as one process, among many, that leads to a successful outcome. So, whether you are a business owner, training manager, estimator or trades professional looking to develop this
skill set, the following will provide three key ways to elevate the estimating process.

1. Consistent Estimating Processes

As an estimator, it’s important to have a consistent approach to thoroughly capturing the details of your project. In my field of property restoration, detailed data capture is crucial. Insurance claim estimates are typically constructed line by line in a specific software called Xactimate. In short, the program provides standardized pricing based upon industry norms using quantities from the structure. For new estimators, and especially for startup-phase business owners, using objective pricing can be a useful tool for checking your work, rather than just shooting from the hip to produce your cost estimates.

The program also provides material, equipment and labor breakdowns based
upon the data. I have seen several variations of this type of program throughout the skilled trades. They are helpful resources, and it’s important that estimators constantly evolve with their tools.

Properly preparing the documentation that supports an estimate is key to an expedient review, negotiation and approval process with an insurance carrier. These same principles apply to preparing any estimate with any client. I encourage all estimators to use headers and structure their estimates in a manner that flows with the work process. I find this helps to set apart the estimate, makes them easier to review by the parties involved, and leaves them readily adaptable for use in a production plan.

At times, walking a worksite is the best way to observe the details and nuances of a project. These tools also allow you to rewalk the site as you compose your estimate, and share this access with all parties involved in the project. While each job is unique, there’s a value in having a trainable and repeatable process. Maintaining this level of consistency also helps to reduce scope creep in the estimating phase.

2. Clarity in Communication

Communication is possibly the most needed skill in every business endeavor — this is especially true in the skilled trades. In my segment of the industry, there are multiple parties involved with any given project. A shortlist of the process includes the client, the adjuster and the contractor. These are the key players in the first phase of developing an agreed-upon scope of work, which is associated with the estimated cost. Within that carrier umbrella, there can be many participants, including third-party administrators, consultants, independent adjusters, desk adjusters and reviewers and environmental professionals. Even if all of your data and processes are consistent, there must still be a transfer of information between the estimator and the ones involved in producing the work.

Whether it is intentional or not, often, clients may not always accurately recall every conversations and its details, which can create friction or unnecessary downtime. Delays due to rocky communication can be significantly reduced with effort and intentionality. Develop a clear and consistent process. Clarity is the key to developing consistency, which will lay the foundation for the next key to success.

3. Accountable Production

Business owners love to talk about accountability, yet struggle to build and maintain it. If you take nothing else from this article, know that true accountability has to start with clarity. Does your organization have a clear vision and purpose? I’m not talking about the cute posters on your wall with the company’s stated values.

Rather, you need to establish guiding principles recognizing the core of your culture, your shared philosophy and organizational habits. Accountability comes from the alignment of the norms and expectations within your organization.

Your estimates should be constructed in a manner that facilitate clear communication of both the scope of work and the expedient transition to production. The estimating process as a whole must be founded on clarity so that your team can produce consistently, and you as an owner and/or manager have objective measures for accountability.

Estimating cannot be a silo, it has to be a function of your commitment to the four pillars of success: your people, your process, your production and your progress. When owners, managers, estimators and production staff are in alignment, good things consistently happen.