What estimating really is
An estimate is a prediction — your best disciplined guess at what a job costs you before you build it. The goal is accuracy, not a low number.
In this series
A prediction you have to get right
An estimate is your best, disciplined guess at what a job will cost you before you build it. The whole point is to be right enough that you cover every cost, get paid for your time, and make a profit, with a cushion for the surprises.
Estimating isn't about being cheap. It's about being accurate.
Four words people mix up
| Word | What it means |
|---|---|
| Estimate | Your internal calculation of what the job will cost you to build. |
| Quote / bid | The firm price you give the client: your cost plus markup. A bid is usually a competitive quote. |
| Proposal | The full document you hand the client. The price plus scope, terms, and what's included. |
The estimate is for you. The proposal is for the client. Keeping those two separate in your head is the first habit to build, because the moment you hand a client a raw cost number you've given away the markup you need to stay in business.
Where the rest of this course goes
The chapters that follow walk the same path a real bid takes. You'll read the plans for quantities, sort those quantities into the four cost buckets, burden your labor, price the unknowns, and only then turn cost into price with Overhead and profit — markup vs. margin.
- Chapter 4 of 13
The quantity takeoff
Everything you count falls into one of four measurement types. Sort each material into its type, work systematically, and you won't miss a line.
- Chapter 7 of 13
Overhead and profit — markup vs. margin
Markup and margin are not the same percentage, and the difference is where new contractors quietly go broke. Set the margin first, then back into the markup.
