Accurate cost estimating is the bedrock of every successful construction project. Whether you’re quoting for a residential renovation, a retail fit-out, or a $20M multi-unit build, one thing remains true: if your numbers are wrong, your profit margin vanishes — fast.
That’s why one of the most important decisions for any builder, developer, or architect is whether to invest in an in-house estimator or outsource your costing to a dedicated estimating company.
In this article, we break down the pros and cons of each model, covering everything from costs and staffing flexibility to reliability and scalability. Whether you’re a one-man band or running a growing construction firm, this guide will help you make the right decision for your business.
Option 1: Hiring an In-House Estimator
An in-house estimator is someone you employ directly — part of your internal team. They work in your office (or remotely), handle ongoing estimates, liaise with your team daily, and are paid a fixed salary.
Pros of an In-House Estimator
1. Real-Time Collaboration
An in-house estimator can walk through the project with you, attend team meetings, and respond quickly to RFIs and design updates. Communication is streamlined.
2. Deep Understanding of Your Business
Over time, in-house estimators become intimately familiar with your construction methods, labour costs, pricing preferences, and supplier relationships.
3. Cultural Integration
They become part of your team culture. This often results in stronger alignment with project managers, site teams, and business goals.
Cons of an In-House Estimator
1. High Fixed Costs
Top-tier estimators in Australia often command salaries of $90K–$160K. Add in recruitment fees, leave entitlements, superannuation, software licenses, and office overheads, and you’re quickly looking at $120K+ per year.
2. Lack of Flexibility
If your workflow slows down or you miss a few tenders, you’re still paying your estimator full-time. During tender surges, a single estimator may also struggle to keep up.
3. Risk of Poor Fit
Hiring the wrong person can be costly. Missed items, errors in the bill of quantities, or poor communication can hurt your tenders — and reputation.
4. Knowledge Bottlenecks
If your only estimator gets sick or resigns, you’re exposed. Key pricing knowledge can be lost or delayed.
Option 2: Outsourcing to an Estimating Company
An estimating company like Matrix Estimating provides professional cost estimating services on a flexible, pay-per-project basis. You send them your plans and scope; they deliver a ready-to-use estimate — often within 2 to 5 business days.
Pros of Using an Estimating Company
1. Flexibility to Scale Up or Down
Whether you need one estimate this week or five next week, outsourcing lets you flex to demand. No need to worry about hiring or overloading internal staff.
2. Cost Efficiency
You only pay for what you need — no salaries, superannuation, annual leave, or idle time. This is a big win for small-to-medium builders managing cash flow.
3. Access to Specialised Talent
Matrix Estimating employs a team of estimators with backgrounds in carpentry, joinery, civil works, electrical, concrete, roofing, and more. Your estimates benefit from this cross-trade accuracy.
4. Better Software and Systems
Estimating firms invest in industry tools like CostX, Bluebeam Revu, Buildsoft, and automated takeoff systems. Every estimate is reviewed by senior staff before delivery.
5. No HR Hassles
No recruitment, no onboarding, no performance management. You stay focused on building — we handle the numbers.
Cons of Using an Estimating Company
1. Perceived Lack of Familiarity
Some builders worry that an outsourced team won’t understand their labour productivity or quoting style. At Matrix Estimating, we overcome this by tailoring estimates to your preferred trades, labour rates, and supplier base.
2. Limited Control Over Workflow
Because you don’t manage them day-to-day, you’ll need to communicate clearly and agree on timelines. That said, our team uses Trello, WhatsApp, and shared trackers to keep you updated.
Real Case Study: Sydney Builder Saves $150K+
A Sydney-based builder doing $18M/year in revenue was running two full-time estimators in-house. During downturns, costs were high. During tender spikes, deadlines were missed.
After partnering with Matrix Estimating, they cut fixed salary costs, improved their win rate, and started delivering estimates faster and with greater accuracy. Today, they treat Matrix as a seamless extension of their internal team — without the employment risks.
Key Considerations: How to Choose?
1. Project Pipeline Stability
- Steady, repeatable jobs? In-house may make sense.
- Fluctuating volume? Outsourcing gives you flexibility.
2. Trade Scope
- Do you need multi-trade takeoffs (e.g. carpentry, concrete, services)?
- Estimating companies often have broader coverage than one estimator.
3. Speed & Responsiveness
- Need 2-3 tenders per week turned around fast? Outsourcing with a dedicated provider ensures you meet deadlines.
4. Cost Strategy
- Want to avoid large up-front hiring costs?
- Pay-per-project lets you align estimating costs directly with sales activity.
In-House vs Estimating Company (Matrix Estimating) — Summary Table
| Criteria | In-House Estimator | Estimating Company (Matrix) |
|---|---|---|
| Fixed Cost | High (salary, super, software) | Pay-per-estimate |
| Scalability | Limited | Scalable up/down instantly |
| Expertise Range | Usually 1–2 trades | Multidisciplinary team |
| Software & Tools | Often limited or outdated | Full suite (CostX, Bluebeam, etc.) |
| Flexibility | Low | High |
| Reliability | Depends on one person | Peer-reviewed team output |
| Time-to-Delivery | Variable (depending on workload) | 24–72 hours based on scope |
| Training/HR Burden | High | None |
Why Builders Choose Matrix Estimating
We’re not just number crunchers — we’re partners in your profitability. Here’s what makes us different:
- Trade expertise: Electrical, carpentry, joinery, concrete, civil and more
- Fully digital: All work completed using CostX, Bluebeam, or Buildsoft
- Tailored to you: We use your preferred suppliers, rates, and scope templates
- Peer-reviewed: Every estimate is checked before delivery
- Fast turnaround: Typically 24–72 hours
- Transparent communication: You’re kept in the loop via WhatsApp, Trello, or email
- Sector experience: Residential, commercial, education, retail, government
Frequently Asked Questions
Q: Will Matrix Estimating understand our preferred trade rates and finishes?
A: Yes — every client gets a tailored template and rate library based on your past jobs. We’ll even review your past estimates to align formats.
Q: Can you assist with only part of the scope?
A: Absolutely. We can quote full jobs or break it into specific trades like carpentry, joinery, tiling, cladding, concrete, and more.
Q: What’s the typical turnaround time?
A: Most estimates are returned within 2–3 business days. Larger commercial packages may take longer depending on complexity.
Q: Is it secure to send plans?
A: Yes. We use encrypted file sharing and NDAs upon request.
Final Verdict
There’s no one-size-fits-all answer — but here’s the rule of thumb:
- If you have consistent tendering volume, internal admin support, and HR capacity, an in-house estimator can work well — but comes with high overhead and less flexibility.
- If you want scalable, trade-specific, cost-effective estimating support that grows with your business, outsourcing to a company like Matrix Estimating is often the smarter, more agile option.
Call to Action: Let’s Talk
Want to see how we work?
👉 Request a free estimate or upload your plans
👉 Visit our Estimating Services page
Let Matrix Estimating take care of your numbers — so you can take care of the build.
