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.
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Now let's do a recap of the sequence of steps to develop an estimate, starting from the beginning of this class. First, confirm whether there is a bid form to see if there are any specific breakdown requirements for the estimate. This is important, especially if the project includes phases 1 and 2. Review all bid documents to fully understand the requirements for the estimate.
Perform the quantity take-off. Name the take-off items as referenced in the plans and specifications whenever possible. This ensures that there is a clear line of communication regarding what is being provided and what the pricing covers for that item.
Enter items and take-off quantities into the estimate spreadsheet. Price labor, materials, equipment, and subcontractor items. These are your cost categories.
Establish a schedule or, at minimum, project durations. You’ll need this for your general conditions. Prepare your general conditions.
These are all the items associated with running or building the project with your own onsite crew. Apply fees, add-ons, and overhead costs. Then apply your markup.
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Always check for errors and validate the estimate to ensure everything in your estimate is satisfactory and complete. And above all, deliver the estimate on time. The deadline is typically identified in the bid documents as the required time to submit your bid, whether it is hand-delivered or submitted by email.
