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Outsourcing Estimating for Australian Businesses

Dale Pearce  •  January 24, 2024

The concept of outsourcing construction estimating is not a recent development, having been accessible and in practice for several years in construction businesses of all persuasions. Not only here in Australia, but in Europe and across North America.

Despite its existence, Australian businesses may still be unaware of the benefits that building a remote team to handle this function can have. Or, for those who are aware of the option to outsource you might still be apprehensive about whether the purported benefits outweigh housing the task internally.

 In this blog post, we'll unravel the intricacies of outsourcing construction estimating and delve into the benefits.

How Does Outsourcing of Estimating  Roles Work?

Despite some common misconceptions, you retain full control and, your remote estimators simply act as an extension of your onshore team (think someone working from home in Australia). The outsourcing company you choose to  partner with manages all employment ancillaries such as HR and payroll. And in our case, we provide brand new physical IT equipment as well. You then manage your new offshore team member/s the same way in which you would a team member in Australia.

At Platinum Outsourcing, our new client process comprises five key steps.

Discovery:

We dedicate time to comprehensively understand your outsourcing objectives. Through face-to-face discovery meetings, whether in person or virtually, we delve into your goals and outsourcing plans. This involves gathering essential information, such as position descriptions, KPIs, and your preferred profile for the new team member/s.

Recruitment & Selection:

We tailor our recruitment process for each client, ensuring a precise match of skills and cultural fit for your team. Some partners prefer a hands-off approach, allowing us to handle pre-screening and interviews. Others actively participate in the process, joining interviews and conducting skill assessments. There is no obligation to use our services until after selection, and there are no upfront costs.

Start Date Agreed:

Once you've chosen your ideal offshore team member/s, we agree upon a start date or go-live date. At this point, you sign our straightforward service agreement, and we initiate preparations for your team member's first day with your business.

Induction:

We conduct a comprehensive Platinum Outsourcing company induction for all new team members on their first day. This orientation includes an introduction to our business, payroll and HR processes, policies, general KPIs (e.g., schedule adherence), and the setup of their workstation with all necessary IT equipment to commence work for your business.

Ongoing Support and Monitoring:

We maintain regular communication with both you and your team to ensure smooth operations. This involves conducting weekly client onboarding calls, one-on-one sessions with your team in Manila, facilitating probationary reviews, and providing general coaching for improvement. Our commitment extends beyond onboarding to foster a successful and long-term partnership.

Pros of Outsourcing Estimating

Reduced Costs:

How do you reduce costs via partnering with an outsourcing provider? In general, salaries in the Philippines for qualified and experienced estimators are in the range of 55-60% lower than that of Australia. Additionally, you save on the cost of recruitment, office space, and IT equipment.

Ability to Submit More Bids:

Lowering bid preparation costs, facilitates the submission of more proposals within the same budget. Outsourcing eliminates restrictions imposed by an in-house team, potentially increasing bid success rates.

Outsourcing construction cost estimation provides a competitive advantage, simply put you can improve your capacity for bidding. This frees up your onshore team to concentrate on higher-value activities like project management, customer interactions, and data-driven decision-making.

In the competitive construction sector, mastering the art of bidding is crucial. A comprehensive strategy that incorporates lead generation, accurate estimates, and insightful financial management is necessary. By outsourcing construction cost estimation, businesses can improve their bidding process without affecting their budget, leading to more contracts and more profit.

Talent Pool:

Finding the right people is a challenge in all sectors in 2023, getting access to, and mobilising skilled labour is cost and time intensive. The Philippines has a working age population of nearly 48 million people.

Flexibility:

Engaging in outsourcing can substantially mitigate risks for your business. Opting for onshore hiring subjects you to obligations outlined by Fair Work Australia, especially concerning the management of redundancies in the event of changing trading conditions. At Platinum Outsourcing, our approach is transparent—we provide a straightforward 60-day notification period should you decide to discontinue our services. Importantly, there are no exit fees or additional costs associated with terminating our partnership.

We take great pleasure in engaging in discussions with Australian businesses, sharing insights into how we improve efficiency for our partners while also delivering substantial cost savings. Feel free to get in touch with us through our contact form or by emailing info@platinumoutsourcing.com.au for additional details or to arrange a convenient time for a conversation.

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