Estimating in Building Construction

Every page of the estimate should be numbered and ini-
tialed by the person who prepared that portion of the esti-
mate. In addition, every page of the estimate should be
checked and verified, and that person’s initials should be
placed on the page. This rather cumbersome procedure is
required to help answer questions that may arise later. When
construction begins and the estimate is used to purchase
materials, if there are questions concerning a specific item,
the estimator can be found and asked to clarify any questions.

4–4 To Bid or Not to Bid

It is impossible for a contractor to submit a proposal for
every project that goes out to bid. Through personal contact
and the reporting services, the contractor finds out what
projects are out for bid and then must decide on which pro-
jects to submit a proposal. Many factors must be considered:
the type of construction involved compared with the type of
construction the contractor is usually involved in, the loca-

tion of the project, the size of the project in terms of total

cost and in relation to bonding capacity, the architect/

engineer, the amount of work currently under construction,

the equipment available, and whether qualified personnel

are available to run the project.

There are also certain projects for which a contractor is

not allowed to submit a proposal. The owners may accept

proposals only from contractors who are invited to bid;

other projects may have certain conditions pertaining to

work experience or years in business that must be met.

4–5 The Estimate

Once the contractor has decided to bid on a particular pro-

ject, arrangements need to be made to pick up the contract

documents. The estimator should proceed with the estimate

in a manner that will achieve the greatest accuracy and com-

pleteness possible. The accuracy required must be in the

range of 98 to 99 percent for all major items on the estimate.

The Estimate 29

FIGURE 4.1.The Estimate Process.