Construction projects involve many moving parts, but the estimating stage provides the financial foundation for everything that follows. Before a contractor submits a proposal, there needs to be a clear understanding of the project's scope, material quantities, labor requirements, and expected costs.
A bid based on incomplete information can create problems long after the contract has been awarded. Missing quantities, outdated prices, overlooked scope items, or incorrect labor assumptions can affect the project's financial performance. For this reason, contractors and subcontractors often place significant attention on the estimating process before submitting a bid.
Professional construction estimating services can provide additional support by turning project drawings and specifications into organized quantities and cost information.
Start With the Project Documents
Every estimate should begin with a careful review of the available project documents. Architectural drawings, structural plans, specifications, schedules, civil drawings, and addenda can all contain information that affects the final price.
An estimator should identify the latest drawing revisions and look for changes that could affect quantities or scope. Specifications may also contain requirements that are not immediately obvious from the drawings.
For example, a project may require a particular material grade, installation method, finish, or performance specification. Ignoring these details can result in an estimate that does not accurately represent the actual construction requirements.
Build an Organized Quantity Takeoff
Once the project documents have been reviewed, the next step is determining the quantities required for the work.
A quantity takeoff may involve measuring areas, lengths, volumes, counts, or other units depending on the trade. A concrete estimator may calculate foundations, slabs, footings, reinforcing steel, and formwork, while a framing estimator may measure lumber, engineered wood, metal studs, sheathing, hardware, and related components.
Organizing quantities by trade makes the estimate easier to review and update. It also provides a clear connection between the drawings and the eventual project costs.
Digital estimating tools can make measurements and document management more efficient, particularly when a project contains a large number of drawings.
Consider Local Material and Labor Costs
Quantity alone does not determine the final project price. Each quantity needs to be connected to an appropriate cost.
Material pricing can vary based on supplier, product specifications, delivery requirements, project location, and market conditions. Labor costs can also vary depending on location, crew requirements, productivity, installation complexity, and site conditions.
Using project-specific pricing is therefore important when preparing an estimate. Land Mark Estimations describes its pricing approach as using zip-code-specific material and labor rates rather than relying solely on generic national averages.
This type of localized information can help contractors develop cost data that is more closely connected to the market where the project will actually be built.
Estimate Each Trade Carefully
Construction projects can involve many different trades, and each one requires a different estimating approach.
Common estimating scopes include:
- Concrete
- Framing
- Drywall
- Roofing
- Flooring
- Painting
- Masonry
- Structural steel
- Landscaping
- Insulation
- Finish carpentry
- Mechanical systems
- Electrical systems
- Plumbing
- Fire protection
For larger projects, a coordinated multi-trade estimate can help contractors understand how the different scopes contribute to the overall project cost.
Breaking an estimate into individual trades also makes it easier to identify missing work and review pricing before a bid is submitted.
Review Subcontractor Quotes
General contractors frequently rely on subcontractor proposals for specialized scopes. However, simply choosing the lowest quoted price may not always provide an accurate comparison.
Subcontractor proposals should be reviewed for inclusions, exclusions, allowances, material responsibilities, labor responsibilities, and other assumptions.
Two subcontractors may provide different prices because their scopes are not identical. Bid leveling can help identify these differences before the final project price is established.
A detailed estimate can therefore serve as more than a pricing document. It can also become a useful tool for comparing different portions of the project.
Include Overhead and Markup
The direct cost of materials and labor is only one part of a contractor's overall pricing.
The final bid may also need to account for supervision, equipment, insurance, administrative expenses, project-specific risks, overhead, and profit.
Markup should be considered carefully because every company has different operating costs and business requirements. A contractor should understand how the final selling price relates to the underlying project costs before submitting a proposal.
A clearly organized estimate makes these calculations easier to review.
Check for Scope Gaps
One of the most valuable stages of estimating is the final review.
Before submission, contractors should check whether all major work shown in the documents has been included. They should also review addenda, alternates, allowances, subcontractor quotes, material pricing, labor calculations, and exclusions.
Scope gaps can occur when information is spread across multiple drawings or when one discipline references work shown elsewhere. A systematic review can help identify these potential omissions.
Use Estimating Support When Bid Volume Increases
Contractors may sometimes have more bidding opportunities than their internal estimating team can handle. Large projects can require extensive plan review and detailed takeoffs, while multiple bid deadlines may arrive within the same week.
Outsourcing some estimating work can provide additional capacity without requiring a company to maintain a full-time estimating department for every possible workload level.
Land Mark Estimations states that it supports general contractors, subcontractors, builders, and developers with estimating and takeoff work across residential, commercial, and other project types. Its published services cover multiple construction trades and use tools such as PlanSwift, Bluebeam, Trimble, and Accubid.
Create a Repeatable Estimating Process
A consistent estimating workflow can make bidding more manageable. Contractors can establish a process that begins with document review and continues through quantity takeoff, pricing, subcontractor review, markup, quality control, and final bid preparation.
Using the same basic workflow for each project makes it easier to identify missing steps and maintain organized records.
It can also make collaboration easier when multiple people are involved in preparing a bid.
Final Thoughts
Accurate construction estimating is about more than
Sign in to leave a comment.