The best starting point for choosing between in-house and outsourced estimating is cost. Outsourced estimating typically costs 50 to 70% less than in-house estimating.

In-house estimates are typically more expensive since they require more maintenance. In-house estimating is an option for large firms with enough revenue. However, for individual contractors or small to mid-sized companies, the best option is outsourced estimates.

In-house vs Outsourced Estimating: What They Entail?

An in-house estimator is hired full-time by a company. The main role of this estimator is to create budgets only for the company and work with company clients. In-house estimators can be a person or a small internal team who work solely for the company.

An outsourced estimator, on the other hand, is a third-party professional or firm hired on a per-project basis. Outsourced estimators can help save money as you do not have to employ them full-time or invest in expensive estimation software. 

What is the Estimated Cost of an In-house Estimator?

In the U.S., the average salary of a full-time in-house estimator usually falls between $62,000 and $121,000, depending on the experience of the estimator. This figure reflects base salary only, excluding any benefits, overtime, software memberships, training time, or bonuses.

For seasonal contractors, it can be very difficult to manage in-house estimators. Even for large firms, it can take quite a chunk out of the total revenue. It's costly to employ an in-house estimator.

What is the Cost of an Outsourced Estimator?

Cost estimates vary by source. But outsourced estimating consistently runs cheaper across vendor and industry data; multiple estimating firms report:

• Savings in the 50–70% range compared to a fully loaded in-house salary. With per-estimate outsourced pricing typically falling between $200 and $5,000, depending on project scope and complexity.

There is a huge gap between the low and high range because it can vary due to the scale and complexity of the project. Small, simple projects tend to be cheaper than large-scale complex projects. The turnaround at times for outsourced estimates is also very quick.

Professional firms like SMA Estimating LLC deliver cost-effective estimating solutions within 24 to 72 hours. This is because the main purpose of the team of estimators is to come up with an accurate financial plan for their client. Hence, in-house estimating only makes sense when multiple higher-volume bidding starts.

What is Outsourced BIM Cost Estimating?

Outsourced BIM estimating means creating an estimate by using building information modelling.

Building information modelling, or BIM, is a highly advanced software technique where one creates a 3D model of the building and uses it for cost estimation. The data is taken directly from the model instead of manual measurements, which helps to save a lot of time. In case of any changes in the design, the estimate is automatically adjusted to the new measurements.

BIM estimating services help to reduce manual or human error by automating material take-off and other calculations. It is especially useful for complex commercial or industrial-scale projects, which are more prone to mistakes. Outsourcing to BIM services gives smaller and mid-range companies access to BIM software without paying for its licence.

Which Should You Choose?

Selecting in-house vs outsourced estimating is one of the most important construction estimating decisions. There is no one answer to this question, as it all comes down to company size and demand. Here is a table as a general rule guideline:

Conclusion 

Between in-house vs outsourced estimating comes down to a few key factors. It includes your bid volume, project complexity, and how much cost predictability you need. Before comparing prices, it helps to understand what each option actually involves. But now it seems more and more contractors are choosing outsourced estimating over in-house. And rightfully so, because outsourced estimating is not only cheap but also provides accurate and quick estimates.