Developing a Comprehensive Estimate: A Step-by-Step Guide for Construction Projects

Key Steps in Developing a Comprehensive Construction Estimate

This article offers a comprehensive step-by-step guide on developing a construction estimate, highlighting the importance of understanding bid requirements, performing an accurate quantity takeoff, pricing labor, materials, and equipment, establishing a project schedule, and validating the estimate.

Key Insights

  • The development of an estimate starts with verifying the bid form and reviewing all bid documents to fully comprehend the requirements and potential breakdowns, recognizing any specific phases involved in the project.
  • Construction estimates should include a detailed quantity takeoff, with items named as referenced in the plan and specifications whenever possible, ensuring clear communication about provided services and their pricing. The items and their quantities are then entered into an estimate spreadsheet, with costs categorized into labor, material, equipment, and subcontractor items.
  • Final stages involve establishing a project schedule or projected durations, preparing general conditions, applying fees, overhead, and markup, checking for errors, and validating the estimate to meet the project's needs. Timely delivery of the estimate, as outlined in the bid documents, is crucial.

Note: These materials offer prospective students a preview of how our classes are structured. Students enrolled in this course will receive access to the full set of materials, including video lectures, project-based assignments, and instructor feedback.

Now let's do a recap of the sequences to develop an estimate, starting from the beginning of this class. First, confirm if there is a bid form to see if there is any specific breakdown requirements for the estimate. This is important, especially if there might be phases 1 and 2. Review all bid documents to fully understand the requirements for the estimate.

Perform the quantity takeoff. Name the takeoff items as referenced in the plans and specifications whenever possible. This makes sure that there is a clear line of communication as to what is being provided and what the pricing is for that item.

Enter items and takeoff quantities into the estimate spreadsheet. Price labor, material, equipment, and subcontractor items. Remember, these are your cost categories.

Establish a schedule, or at a minimum, project durations. You'll need this for your general conditions. Prepare your general conditions.

These are all the items associated with running the project or building the project with your own crew of people on site. Apply fees, add-ons, and overhead. Then apply your markup.

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And always check for errors and validate the estimate to make sure that everything in your estimate is satisfactory to your needs. And above all, deliver the estimate on time. This time is typically identified in the bid documents as the required time to submit your bid, whether it be hand-delivered or sent by email.

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Ed Wenz

Construction Estimating Instructor

Ed started Wenz Consulting after 35 years as a professional estimator. He continues to work on various projects while also dedicating time to teaching and training through Wenz Consulting and VDCI. Ed has over 10 years of experience in Sage Estimating Development and Digital Takeoff Systems and has an extensive background in Construction Software and Communications Technology. Ed enjoys spending his free time with his wife and grandchildren in San Diego.

  • Sage Estimating Certified Instructor
  • Construction Cost Estimating
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