How to Increase Efficiency and Profitability Through Estimating CheckupsHow to Increase Efficiency and Profitability Through Estimating Checkups

“A solid, accurate and consistent estimating strategy and program is the absolute foundation for your company’s success to overcome industry challenges,” said John Kenney, CEO of Cotney Consulting Group, during his presentation to attendees of the 2024 International Roofing Expo.  

According to Kenney, contracting company owners should conduct two audits relating to their estimation process: one on the estimating department and one on the estimators.  

Evaluating the estimating department  

The overarching goal of reviewing your estimating department is increasing efficiency and minimizing mistakes, according to Kenney. Developing estimating procedures that do both can give you confidence on bid day and upon project award, he said, as long as executives remember that effective leadership is still necessary even after details, plans and steps are in place. 

“Evaluating your estimating department process is critical,” Kenney said, “because it ensures the accuracy of project estimates, directly influences profitability, mitigates risks and maintains a competitive edge in the roofing industry.” 

He suggested beginning by reflecting on these eight questions to determine the state of your estimating department and to start creating plans for improvement:  

Evaluating estimators  

For the next part of the process, Kenney said there are five key points to consider when reviewing your estimators’ performances: 

1 | Accuracy. 

Assess the accuracy of their estimates compared to the actual project costs, and track historical data to measure estimation precision.  

2 | Consistency.

Evaluate if estimators consistently follow established processes and guidelines, and analyze variations in estimates to identify consistency issues.  

3 | Communication.

Measure their ability to communicate project requirements and details effectively, and assess their responsiveness to inquiries and concerns from project teams. 

4 | Time management.  

Examine their ability to complete estimates within defined timeframes, and ensure estimators meet project deadlines to maintain workflow.  

5 | Cost control.

Evaluate their ability to control costs by accurately predicting project expenses, and assess their skill in identifying potential cost-saving opportunities. 

“Estimators that are effectively evaluated and trained will maintain a high standard of estimation accuracy,” Kenney said.  

He suggested using the above points to guide your evaluations, regardless of what review method you employ. He offered a few ideas, including regularly scheduled 1-to-1 meetings and peer review sessions, and recommended incorporating any client feedback or performance improvement points into these meetings.  

“It’s also crucial to maintain an ongoing evaluation process to ensure consistent improvement,” he said, “and establish a training and development plan for estimators based on evaluation results that incorporate industry-specific courses and tools to enhance their skills.”