In the competitive world of construction, accurate and timely cost estimation is critical to winning bids, managing budgets, and delivering profitable projects. But when it comes to building your estimating team, companies face a key decision: should you hire in-house estimators or outsource to a professional estimating service?
This blog breaks down the pros and cons of each approach with a focus on which option saves more time and money.
What Is In House Estimating?
In house estimating involves hiring full time staff to manage all cost estimation tasks internally. These professionals work directly with your project managers, engineers, and clients to prepare bids, takeoffs, and budgets.
Pros:
-
- Full control over processes and communication
-
- Deep understanding of your company’s systems and standards
-
- Immediate availability for urgent tasks
Cons:
-
- High overhead costs (salaries, benefits, software, training)
-
- Limited scalability during peak seasons
-
- Risk of underutilization during slow periods
What Is Outsourced Estimating?
Outsourced estimating means partnering with a third-party service like MSB Estimating to handle your cost estimation needs. These firms specialize in construction estimating and offer flexible, on-demand support.
Pros:
-
- Lower fixed costs pay only when you need estimates
-
- Access to specialized expertise and advanced tools
-
- Faster turnaround times with dedicated teams
-
- Scalable support for large or complex projects
Cons:
-
- Requires clear communication and documentation
- Less direct control over day-to-day workflow
Time Comparison: Who’s Faster?
| Task | In House Estimating | Outsourced Estimating |
| Onboarding & Training | Weeks to months | Immediate availability |
| Estimating Turnaround | Varies by workload | 24–72 hours (typical) |
| Peak Season Scalability | Limited by team size | Scales instantly |
| Urgent Bid Support | May require overtime | Dedicated rush support |
Verdict: Outsourced estimating services save significant time especially during busy seasons or when bidding multiple projects simultaneously.
Cost Comparison: Who’s More Affordable?
| Cost Factor | In House Estimating | Outsourced Estimating |
| Salaries & Benefits | High recurring costs | Pay-per-project flexibility |
| Software & Tools | Annual licensing fees | Included in service |
| Training & Development | Ongoing investment | No internal training needed |
| Idle Time / Downtime | Costly underutilization | No cost when not in use |
Verdict: Outsourcing offers a leaner, more cost-effective model especially for small to mid-sized firms or those with fluctuating workloads.
Real World Scenario
A mid-sized contractor bidding on multiple residential and commercial projects faced delays due to limited in-house estimating capacity. After partnering with MSB Estimating, they reduced bid preparation time by 60%, saved over $40,000 in annual staffing costs, and won 3 new contracts in one quarter.
Strategic Benefits of Outsourcing
-
- Win More Bids: Submit more estimates without overloading your team
-
- Improve Accuracy: Leverage expert estimators and advanced tools
-
- Reduce Overhead: Eliminate fixed costs tied to full-time staff
- Scale Easily: Handle large or complex projects without hiring
Conclusion: Which Should You Choose?
If your company has consistent estimating needs and the budget to support full-time staff, in-house estimating may be viable. But for most contractors, especially those looking to grow, reduce costs, or improve efficiency, outsourced estimating services offer clear advantages in both time and money saved.
MSB Estimating provides fast, accurate, and cost effective estimating solutions tailored to your project type, size, and timeline.
Ready to Save Time and Money?
Contact MSB Estimating today to learn how our outsourced estimating services can help you streamline your bidding process and grow your business.