Construction Estimating Process
Estimating combines quantities, pricing, scope assumptions, risk, and strategy into a cost forecast. The best estimates make assumptions visible before decisions are made.
Process steps
- Step 1
Review scope
Read drawings, specifications, narratives, alternates, allowances, and procurement requirements.
- Step 2
Measure quantities
Perform takeoffs using consistent units, locations, assemblies, and measurement rules.
- Step 3
Price resources
Apply labor, material, equipment, subcontractor, productivity, escalation, and market assumptions.
- Step 4
Add risk and qualifications
Clarify exclusions, assumptions, contingency, alternates, long-lead risks, and unresolved scope.
- Step 5
Review and reconcile
Compare against budget, previous estimates, bids, benchmarks, and owner priorities.
Checklist
- Scope review
- Quantity takeoff
- Unit prices
- Labor rates
- Subcontractor quotes
- Alternates
- Allowances
- Contingency