Master the language of construction estimating. This comprehensive glossary covers essential terms for takeoffs, bidding, cost estimation, and construction project management.
A document issued during the bidding period that modifies, clarifies, or adds to the original bid documents. Addenda become part of the contract and must be acknowledged in bid submissions.
A sum of money included in a contract for items not fully specified or determined at bid time. Allowances are reconciled during construction when actual selections are made.
An optional scope item that the owner may choose to include or exclude from the project. Alternates are priced separately and added or deducted from the base bid.
The base price for completing all work shown in the drawings and specifications, excluding alternates. The base bid is the primary price owners compare when evaluating bids.
A guarantee from a surety company that the bidder will enter into a contract at the bid price if awarded. Protects owners from bidders who withdraw after bid opening.
A comprehensive list of materials needed for a project, including quantities, specifications, and sometimes pricing. Generated from takeoff and used for procurement.
The total cost of employing a worker beyond base wages, including payroll taxes, insurance, benefits, and other employer costs. Typically adds 30-50% to base wage.
A written agreement to modify the contract scope, price, or schedule after the contract is signed. Change orders must be approved by both parties before work proceeds.
An allowance in the estimate for unforeseen conditions or scope items. Contingency percentages vary based on project complexity and design completion level.
A numerical or alphanumeric system for categorizing and tracking project costs. Enables comparison between estimated and actual costs for future estimating accuracy.
The Construction Specifications Institute's standardized system for organizing construction information into 50 divisions. Common reference for organizing estimates and specifications.
Costs directly attributable to a specific project, including labor, materials, equipment, and subcontractors. Distinguished from indirect costs and overhead.
A calculated approximation of project costs based on quantities, rates, and other factors. Estimates vary in detail from conceptual budgets to detailed bids.
Costs for project management, supervision, temporary facilities, safety, and other non-trade-specific items. Typically 5-15% of direct costs depending on project type.
The rate at which workers complete tasks, measured in units per hour or hours per unit. Affected by conditions, complexity, and worker skill level.
A fixed price for completing a defined scope of work, regardless of actual costs incurred. Risk of cost overruns falls on the contractor.
The profit percentage calculated as a portion of the selling price. For example, $15 profit on a $100 sale equals 15% margin.
The profit percentage calculated as a portion of cost. For example, $15 profit added to $85 cost equals 17.6% markup. Often confused with margin.
The process of measuring and counting materials from construction drawings. Results in a list of quantities needed for procurement and pricing.
Indirect costs of running a business that cannot be tied to specific projects, including office rent, admin salaries, insurance, and marketing. Applied as percentage to direct costs.
A surety bond guaranteeing that subcontractors and suppliers will be paid. Protects against mechanic's liens and ensures supply chain payment.
A surety bond guaranteeing the contractor will complete the project according to contract terms. If contractor defaults, surety completes the work.
The quantity of work a crew can complete in a time period, such as 100 square feet of drywall per hour. Used to calculate labor hours from quantities.
A detailed measurement and listing of all materials and work items in a project. Also refers to the profession of quantity surveying common in international markets.
A formal request for clarification on drawings, specifications, or contract documents. RFIs during bidding should be answered in writing via addendum.
The defined work to be performed under a contract, including tasks, deliverables, and exclusions. Clear scope prevents disputes and change orders.
A contractor hired by the prime/general contractor to perform a specific scope of work. Subs carry their own insurance and often specialize in one trade.
The process of measuring and counting all items from construction drawings to determine material quantities. Foundation of accurate estimating.
A contract type where the owner pays for actual labor hours and material costs plus a markup. Risk of cost overruns falls on the owner.
A price for a specific unit of work, such as dollars per square foot or per linear foot. Used when quantities may change from estimated amounts.
The process of analyzing project components to reduce cost while maintaining function and quality. Often performed when bids exceed budget.
A percentage added to material quantities to account for cutting waste, damage, and installation losses. Varies by material and installation complexity.
A hierarchical decomposition of project scope into manageable work packages. Used for organizing estimates, schedules, and cost tracking.
Tectonic AI helps contractors estimate faster and more accurately. Upload your plans and see the difference AI-powered takeoffs can make.
Try Tectonic FreeNo credit card required