Estimating Standards
Document Type: Standards
Version: 1.0
Last Updated: February 2026
Distribute To: Estimating Department
Purpose
Establish consistent standards for preparing accurate, competitive estimates.
Estimating Process
Document Review → Quantity Takeoff → Pricing →
Assembly → Review → Final Pricing → Submit
Estimate Components
Direct Costs:
| Component | Description |
|---|---|
| Labor | Hours × hourly rate |
| Material | Quantities × unit price |
| Equipment | Hours/days × rate |
| Subcontractors | Sub quotes |
Indirect Costs:
| Component | Description |
|---|---|
| General Conditions | Site overhead |
| Overhead | Company overhead |
| Profit | Margin |
| Contingency | Risk reserve |
| Bond | If required |
Document Review
Before Takeoff:
- Drawings complete and legible
- Specifications reviewed
- Addenda incorporated
- Questions/clarifications noted
- Scope clearly defined
- Bid requirements understood
Note:
- Conflicts between drawings/specs
- Missing information
- Ambiguous requirements
- Special requirements
Quantity Takeoff Standards
General Rules:
- Measure from contract documents
- Use consistent units
- Apply appropriate waste factors
- Document assumptions
- Verify calculations
Takeoff Checklist:
- Scale verified
- All areas counted
- Waste factors applied
- Units consistent
- Math verified
Common Waste Factors:
| Material | Waste % |
|---|---|
| Concrete | 5-10% |
| Rebar | 5-10% |
| Lumber | 10-15% |
| Drywall | 5-10% |
| Roofing | 5-10% |
| Paint | 5-10% |
| Flooring | 5-10% |
Labor Pricing
Labor Rate Components:
Base wage
+ Taxes (FICA, FUTA, SUTA)
+ Insurance (WC, GL)
+ Benefits (health, retirement)
+ Training
= Burdened Labor Rate
Productivity Factors:
- Weather conditions
- Site access
- Height of work
- Complexity
- Crew size
- Learning curve
Material Pricing
Pricing Sources:
- Vendor quotes (preferred)
- Historical data
- Published pricing guides
- Material cost databases
Quote Requirements:
- Current pricing
- Delivery included
- Tax status clear
- Quantity breaks
- Validity period
Subcontractor Quotes
Quote Collection:
- Minimum 3 quotes per trade
- Complete scope coverage
- Written quotes only
- Qualified subs only
Quote Review:
- Scope complete
- Exclusions acceptable
- Qualifications noted
- Insurance adequate
- Price reasonable
Bid Leveling:
- Compare apples to apples
- Adjust for scope differences
- Note qualifications
- Identify buy-out potential
Markup Guidelines
Standard Markups:
| Project Type | Overhead | Profit | Total |
|---|---|---|---|
| Negotiated | 10% | 10% | 20% |
| Competitive | 8% | 5% | 13% |
| Hard Bid | 6% | 4% | 10% |
| Public | 5% | 3% | 8% |
Adjust based on risk, complexity, and market
Contingency:
- Low risk: 2-3%
- Medium risk: 3-5%
- High risk: 5-10%
Estimate Summary Format
================================================================
ESTIMATE SUMMARY
================================================================
Project: ________________________ Date: _______________
Estimator: ______________________ Estimate #: __________
================================================================
DIRECT COSTS:
01 General Requirements $________________
02 Existing Conditions $________________
03 Concrete $________________
04 Masonry $________________
05 Metals $________________
06 Wood/Plastics $________________
07 Thermal/Moisture $________________
08 Openings $________________
09 Finishes $________________
10 Specialties $________________
11 Equipment $________________
12 Furnishings $________________
21 Fire Suppression $________________
22 Plumbing $________________
23 HVAC $________________
26 Electrical $________________
─────────────────
DIRECT COST SUBTOTAL $________________
================================================================
INDIRECT COSTS:
General Conditions $________________
Overhead (__%) $________________
Profit (__%) $________________
Contingency (__%) $________________
Bond (__%) $________________
─────────────────
INDIRECT COST SUBTOTAL $________________
================================================================
TOTAL ESTIMATE $________________
================================================================
QUALIFICATIONS:
___________________________________________________________
___________________________________________________________
EXCLUSIONS:
___________________________________________________________
___________________________________________________________
================================================================
Quality Checks
Before Final Pricing:
- All scope covered
- Quantities verified
- Pricing current
- Calculations checked
- Subcontractor quotes levelized
- Markup appropriate
- Qualifications noted
- Exclusions clear
Final Review:
- Second estimator review
- Management review
- Cost per SF check
- Historical comparison
Cost Per SF Benchmarks
| Building Type | Low | Typical | High |
|---|---|---|---|
| Office (Class A) | $200 | $300 | $400+ |
| Retail | $150 | $225 | $350 |
| Warehouse | $80 | $120 | $180 |
| Industrial | $100 | $150 | $250 |
| Healthcare | $350 | $500 | $700+ |
| Education | $250 | $350 | $500 |
Varies significantly by location and specifications
Related Documents
- Bid Pursuit Process
- Subcontractor Bidding
- Bid Submission Procedure
- Cost Code Structure
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