In this article, Simon Herod of EstimateOne, makes the case for one of the most-overlooked professions in the construction journey – The Estimator –and the crucial role they play in keeping costs down and budgets on track
The progress report on the Government’s New Hospital Programme in May unveiled a notable shortfall in achieving the target of 40 new hospitals by 2030.
Given the limited number of projects completed so far, it is clear that time is crucial and the race is now on to expedite the development of facilities, ensuring they become operational as soon as possible while maintaining a cost-effective approach.
Cost is king in this case, especially for public sector projects during periods of compromised supply chains and material shortages.
And it is here that one of construction’s relatively-unsung heroes steps up: The Estimator.
When a new healthcare facility is opened, and collective backs are slapped across the site and at head office, the calculation champions often remain under the radar, receiving little, or no, recognition.
Ignore at your peril!
Given they are charged with analysing project requirements, quantifying materials, and delivering precise quotes; I’d say their significant role remains overlooked at a contractor’s peril!
Ultimately, the success or failure of these tight-budgeted, yet-incredibly-ambitious projects sits largely with them.
Given the limited number of projects completed so far, it is clear that time is crucial and the race is now on to expedite the development of facilities, ensuring they become operational as soon as possible while maintaining a cost-effective approach
Estimators play a significant role in driving progress within the healthcare construction process for commercial contractors.
Healthcare projects may constitute only a small portion of the sectors they work in, so, it’s essential to have the capability to delve into the specifics of their supply chain and identify the most-suitable subcontractors to handle pricing and project delivery.
This is crucial for achieving success.
Moreover, estimators can support this journey by ensuring that the right subcontractors are selected for the task at hand.
Having clear visibility into subcontractors’ previous projects helps ensure contractors base their quotes on pricing from subcontractors who have prior experience working on healthcare buildings and are familiar with their specific requirements.
Every little helps
Beyond being unfairly overlooked, the estimator’s work is not without its operational challenges, particularly in today’s economic climate.
Budgets for healthcare facilities, particularly in the NHS, have never been tighter.
Indeed, Glenigan’s latest forecasts predicts starts in the vertical will decline 17% over the course of the year, as investment is redirected towards long waiting lists and patient care.
This means every, single, penny counts.
However, projects are becoming more complex, meaning expenditure is becoming more widespread and nebulous and it is leaving many traditional estimation methods obsolete.
When a new healthcare facility is opened, and collective backs are slapped across the site and at head office, the calculation champions often remain under the radar, receiving little, or no, recognition
Furthermore, many proficient estimators find themselves hindered by antiquated tech systems – from sloppy subcontractor quotes on outdated Excel spreadsheets, to encountering gaps in quote coverage that jeopardise the final price, often resulting in higher construction costs and causing far-reaching implications for the organisation.
Estimators have been instrumental in developing new digital tools which can help better collate, manage, analyse, and confirm costs.
It is also addressing other, longstanding problems, which are universal challenges in the profession – from unfair supply chain management, to the risks associated with unreliable pricing in tender submissions.
And it is helping to keep costs on track, a godsend for any NHS trust trying to keep tight control on its coffers.
Out with the old
It is this technology that is so crucial to championing the estimator, particularly in healthcare construction.
However, some remain apprehensive.
Look, I get it, it’s understandable, and I write that as a former estimator myself!
Let me cut through the jargon and make the case why the modern estimator needs to come equipped with the latest tech:
Ultimately, it all saves time and money which, as established, is a crucial factor in healthcare design and construction.
Take another look
At the end of the day, effective budget management is crucial for project success, especially with healthcare construction margins at record lows.
Providing them with real-time data and market insights, will ensure they can effectively overcome supply chain hurdles, leading to accurate estimates, competitive bidding, enhanced collaboration, and better-quality hospitals and healthcare facilities
Estimators must be better recognised, as they play a pivotal role in balancing cost and quality, navigating trade-offs between labour, equipment, and materials.
And their accurate cost forecasting and budget management empower contractors to make informed choices and maintain financial stability.
However, they need to make it easier for themselves to stand up and be counted, and I think technology is the way to unlock their confidence to do so.
In the absence of suitable digital tools, today’s estimators are prevented from fully using their cost-saving skills to maximum effect.
Providing them with real-time data and market insights, will ensure they can effectively overcome supply chain hurdles, leading to accurate estimates, competitive bidding, enhanced collaboration, and better-quality hospitals and healthcare facilities.