Construction Estimating Guide
How to create accurate, professional construction estimates that win jobs.
What Is a Construction Estimate Template?
A construction estimate template is a standardized document that itemizes all project costs — materials, labor, equipment, overhead, and profit — for a proposed construction project.
- Purpose: Provide clients with a clear, professional cost breakdown before signing a contract
- Accuracy goal: Within 5–10% of final cost for detailed estimates
- Types: Preliminary (ballpark), detailed (line-item), and unit-price (per SF, per LF)
Professional estimates convert to contracts 30–50% more often than verbal quotes or single-number bids.
Key Takeaways
- Detailed estimates should be within 5–10% of final cost
- Three types: preliminary, detailed, unit-price
- Professional estimates convert 30–50% better
Essential Line Items in a Construction Estimate
Break every estimate into 5 cost categories for clarity and accuracy.
- Materials: Itemized with quantities, unit costs, and waste factor (5–15%)
- Labor: Trade-specific hours × burdened hourly rate ($35–$85/hr)
- Equipment: Rentals, fuel, delivery fees
- Subcontractors: Specialty trade quotes (electrical, plumbing, HVAC)
- Overhead & profit: Typically 20–40% combined for residential contractors
Include a contingency line of 5–10% for unknowns, especially on remodel projects where hidden conditions are common.
Key Takeaways
- 5 cost categories: materials, labor, equipment, subs, OH&P
- Contingency: 5–10% for unknowns
- Overhead + profit: 20–40% for residential
Estimate vs. Quote vs. Bid: Key Differences
An estimate is an approximation, a quote is a fixed price, and a bid is a competitive proposal.
- Estimate: Approximate cost range, can change as scope is refined. Not legally binding.
- Quote/Proposal: Fixed price for a defined scope. Typically valid for 30 days.
- Bid: Competitive response to a specific scope (RFP). Usually the lowest qualified bid wins.
Use estimates for early-stage conversations. Convert to a fixed quote or proposal once the scope is fully defined.
Key Takeaways
- Estimate = approximate (not legally binding)
- Quote = fixed price for defined scope
- Bid = competitive proposal (often lowest wins)
How to Use This Calculator
Enter Company and Project Info
Fill in your company details, client information, and project specifics including name, address, type, and estimated start date.
Add Items by CSI Division
Click on any CSI MasterFormat division to expand it and add line items. Enter descriptions, quantities, units, material costs, and labor costs for each item.
Set Markup, Tax, and Contingency
Enter your markup percentage for overhead and profit, applicable tax rate, and contingency percentage to cover unforeseen costs. The template auto-calculates all totals.
Preview and Print
Click Preview to see a professionally formatted estimate organized by division with subtotals, markup, tax, contingency, and grand total. Print or save as PDF.
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EstimationPro AI For Contractors, By Contractors Go Beyond Templates With AI-Powered Estimates
Templates are a start. EstimationPro generates complete, customized estimates from your project details.
Frequently Asked Questions
What are CSI MasterFormat divisions?
The Construction Specifications Institute (CSI) MasterFormat is a standard numbering system that organizes construction work into divisions. The 16-division system includes: General Conditions, Site Work, Concrete, Masonry, Metals, Wood, Thermal/Moisture Protection, Doors/Windows, Finishes, Specialties, Equipment, Furnishings, Special Construction, Conveying, Mechanical, and Electrical. Using this standard helps everyone speak the same language.
How do you create a construction estimate?
Start with a quantity takeoff from the plans: measure every material needed. Then assign unit costs for materials and labor from your cost data or suppliers. Organize items by CSI division, calculate subtotals, then add markup (10-20%), tax, and contingency (5-15%). Review with your team before submitting.
What is a good contingency percentage for construction?
Contingency typically ranges from 5% to 15% of the project cost. Use 5-10% for well-defined projects with complete plans and specs. Use 10-15% for renovation work, projects with incomplete drawings, or unfamiliar building types. The more unknowns in a project, the higher the contingency should be.
What is the difference between markup and profit in construction?
Markup is the percentage added to direct costs to cover overhead and profit. Overhead includes office rent, insurance, vehicles, and administrative costs. Profit is what remains after overhead is covered. For example, a 20% markup might break down as 12% overhead and 8% profit, but the exact split depends on your business.
How accurate should a construction estimate be?
Accuracy depends on the project stage. Conceptual estimates are within 25-50%. Schematic design estimates target 15-25% accuracy. Detailed estimates from complete plans should be within 5-10% of actual costs. The more detail in the plans and specifications, the more accurate your estimate can be.
Should I include bonds and insurance in my estimate?
Yes, if the project requires them. Performance bonds typically cost 1-3% of the contract amount. General liability insurance and workers compensation are ongoing business costs usually built into your overhead markup. For large or public projects, itemize bond costs separately so the client understands the cost driver.
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