Construction Estimating Explained: From Material Quantities To Final Project Costs

Construction estimating is the process of determining labor, material, equipment, and overhead costs before the start of a project. An incorrectly estimated project can lead to months of financial losses. Nine out of ten construction projects experience a 28% cost overrun. 32% of these overruns are related to inaccuracies in estimating. What Is Construction Estimating? It is the process of translating contract drawings and technical specifications into numbers. It is also known as taking off. Construction cost estimation determines the cost of quantities of materials that are needed for a construction project. Then multiply them by the cost per unit, and add labor, overhead, and contingency. It makes a bid, a budget, or a lender’s draw schedule.