5 Red Flags When Deciding to Use an Outsourced Estimator

I’m sure that if you’re anything like us, you get several emails every day from outsourced estimators. Having been in the estimating business for over 20 years, we have found that mass email marketing campaigns are not a great way to gain new customers, especially now when many of these dubious companies are allegedly offering services similar to ours for just pennies on the dollar.

In this current economic state, cost-saving measures should certainly be considered, but watch for these signs before you trust your dollars and your estimate to one of the companies.

An Email Signature with No Information

Often solicitations will come from a gmail address, with no actual physical address or phone number. If you had a legitimate company, why would you hide that information, and why wouldn’t you have a website? If you can’t contact them now, what makes you think you can call them later with questions on your estimate?

Location/Offshore Estimators

You must also consider where the company is located. Are they in your time zone so that you can easily reach them during your normal business hours? If the company is offshore, there could be a significant time difference which means that your emails or phone calls will be answered with delay. As a result, you might not ever be able to speak with the estimator that is working on your project. What we always say is that the estimating process is collaborative, so our estimators like to discuss project issues with the customer to determine the most appropriate course of action. Also, once the estimate is delivered and the customer is ready to bid the job, what happens if there are last minute questions, or an addendum? If you work with a U.S. based company, you have a much better chance at getting answers and having the addendum checked for possible cost impacts to your bid.

Prepayment

Do you think it’s a good idea to pay for the entire estimate up front? Personally, I think it’s risky. It is a more common practice to pay a project deposit, with the balance being due once the project is completed. It does give you a bit more leverage than paying for the entire project up front.

Software

When I receive calls for outsourced estimating, I always ask what software they use, and it seems like this new breed of estimators state that they use RS Means, BlueBeam and Planswift. The sample estimates are in Excel format with a cost per item, not broken down by material and labor, and certainly there is no bill of material for all the items that will be required for the project. Would you be comfortable using a take-off based on a price book? You have to consider that material prices based on commodities like steel or oil fluctuate and you always want your estimate to reflect the ”true cost” of your particular project. I’ve actually had arguments with an estimating firm about the software they use. Most of them have never heard of Accubid, ConEst Intellibid, McCormick

Systems, or Vision, nor do they understand the importance of using software specifically geared to the electrical trade.

References

If you actually want to roll the dice and try one of these companies, I say “buyer beware!.” Ask for references! If they produce them, call a few and see if their customers are satisfied. All I can say is that we have never turned down a request for references, and we have plenty of them that are willing to share their experience.

In conclusion, you should consider the importance of your take-off. The rule is that the estimator’s role is to determine the “true cost” of the project. If your estimator is not using electrical estimating software and it completing a take-off using a cost book, chances are that your estimate will either be over inflated or under inflated. In the case of the latter, if you happened to be awarded the project, you’ll be at an immediate disadvantage. Additionally, not having a complete bill of material and appropriate labor hours will make it nearly impossible to plan and manage the job.