Estimating Tips

Design Elements

THE IMPORTANCE OF COMMUNICATION

Communication is key to producing an accurate estimate. A good estimator is not someone who has all the
answers, but is someone who knows where to find the answers and is willing to seek out and ask questions
to those individuals on the construction site who can provide advice to help shape their estimate.
Other suggestions for improving the quality of information obtained from your on-site discussions would
include the following:

Make sure to clarify terminology when you speak to individuals on a construction project. If youre
not sure you are both talking about the same thing, ask for clarification.

When discussing specifications, use descriptions of an item or section rather than referring to
them by number or code.

COMPLETING A QUANTITY TAKEOFF

Developing a quantity takeoff is a process of determining the amount of materials and labour required for a
project from working drawings and specifications. An accurate takeoff can provide you with all the
information you need to create an estimate.
Tips for completing a quantity takeoff:

Read the specifications thoroughly.

Check off everything on a drawing.

Separate special items.

Complete the takeoff in order.

Visit the project site.

Be aware of municipal laws or ordinances.

Estimate quantities before you begin your cost estimate.

QUANTITY TAKEOFF TIME SAVING TIPS

CREATING ESTIMATES
As stated a number of times, accuracy is the priority when it comes to developing estimates. You must make
sure your calculations are correct and you have accounted for every item during the quantity takeoff.
Dont be afraid to write on the drawings. You should check-off every item on a drawing as you complete
your takeoff. This will help ensure all items are included, especially if you are interrupted during the process.
If an item is not clear, ask for clarification or at the very least document your assumptions.
PRODUCTION RATES VERSUS UNIT PRICES
Cost may be expressed as production rates or unit prices.
Production rates are used for simple job activities, when job conditions may vary. Unit prices are calculated
as dollars per unit of work performed. They are typically used for more complex job activities.
Unit prices can be expressed as deductive or additive.

ADDITIVE AND DEDUCTIVE UNIT PRICES

PREPARING THE INITIAL SCHEDULE

An estimator must have good working knowledge of the length of time required to complete the project.
The estimator may be required to prepare an initial project schedule detailing the completion time. It is very
important that the estimator provide the initial schedule to the construction manager for written
confirmation before it is sent to the owner.

COMMON ERRORS IN THE ESTIMATING PROCESS

Accuracy is crucial in estimating. Its important to check your work thoroughly to minimize the number of
errors. If too many errors inflate the final cost, a bid may no longer be competitive. In the same way, if the
mistakes significantly underestimate the true cost of the project, the contractor will lose money.
Residential
In calculating the amount of materials required for a project, the estimator must also account for waste;
errors happen in measuring and cutting and its important to have extra material. For example, an estimator
assumed an allowance of 10% of the total number of lumber materials would suffice. The estimator had
spoken with the framer and he reported that 10% was the allowance required for waste. However, the
estimator did not realize that the allowance for waste should be greater for complicated activities (such as
roofing) where there is a greater chance of error. Due to this error, there was a shortage of materials on site
and the extra expense of ordering and shipping materials had to be incurred by the general contractor.
Commercial
Always doublecheck all data for accuracy. For example, an estimator was developing an estimate for a large
commercial construction project. The estimator was pressed for time and did not check the formulas on the
spreadsheet. The resulting error cost the general contractor thousands of dollars!
Industrial
In some cases, elevation may be required before concrete can be poured at a site. This involves backfilling. If
the soil backfill remains on a site and settles more than anticipated, then more backfill may be required to
meet the desired elevation. An estimator should anticipate this and include it in the estimate.
Institutional
If paint is required in a building, the estimator should determine the absorbance level of the substrate. If the
absorbance level is high, more paint may be required.
Civil
An estimator must include an accurate tolerance threshold for roads when developing a cost estimate. If the
tolerance of the road is higher than anticipated, the cost can rise significantly as more materials will be
required to meet the tolerance threshold.

TIPS FOR AVOIDING ESTIMATING ERRORS

Here are some tips to avoid common errors and to produce accurate and professional estimates.

Prepare a scope of work checklist.

Secure proper documentation and resources before you begin.
Be legible.
Use clear headings and sub-headings.
Use standard descriptions.
Include everything.
Use a calculator that you are familiar with.

SUMMARY - LESSON 6

In this lesson we learned that producing an accurate estimate requires:

Patience and precision.

An accurate takeoff.
Consistent use of unit pricing or production rates.
Knowing the difference between additive and deductive unit pricing and how to apply them in your
estimate.

You should now be familiar with the following:

Tips for completing estimates.

Design elements to review for your estimate.
The importance of communication.
How to complete a quantity takeoff.
Production rates and unit prices.
Common errors in estimating.