The quick-reference pack
The whole course on one page. Print it, keep it with your bids, and run the checklist before anything goes out the door.
In this series
The estimating pipeline
1 Plans → 2 Takeoff → 3 Pricing → 4 Markup → 5 Proposal. Never skip to a price.
Takeoff types
- Count (EA): doors, windows, fixtures
- Linear (LF): framing, trim, pipe
- Area (SF): flooring, drywall, roofing, paint
- Volume (CY): concrete, gravel, fill
Always add waste, around 10% or more.
The four cost buckets
Materials + labor + equipment + subcontractors = direct cost. Then add overhead and profit via markup.
Labor
Labor cost = hours × burdened rate, where the burdened rate is wage + taxes + comp + insurance + benefits. Never bid the raw wage.
Markup vs. margin cheat sheet
| Target margin | 10% | 20% | 33% | 50% |
|---|---|---|---|---|
| Mark up cost by | ≈11% | 25% | 50% | 100% |
Markup = profit ÷ cost. Margin = profit ÷ price. Set the margin first, then find the markup.
Before you send the bid
- Every item taken off
- Waste added
- Labor burdened
- Subs quoted in writing
- Overhead covered by markup
- Contingency and allowances in
- Target margin hit
- Scope and exclusions written
- Payment schedule set
