A number of contractors will start with a blank piece of paper. (the back of an envelope is the worst place), or word processors, or specific estimate forms for determining the proper construction job costs. Many contractors use cost books, which have many price structures contained in them that help a contractor create an accurate estimate for each job. People who work like this lose a lot of money.

After talking with thousands of contractors over the years it's clear to me that this type of estimating is not the best way of doing it. The challenge is that it's difficult to spot duplications and missing items in your estimate, if it's more that a couple of dozen items.

I believe that the best way to create your estimates, no matter how you do them, it to do them by, what I call, sections. How the sections are named (tasks, classes, categories) can depend on the person doing the labeling. In a nutshell, these sections will let you lay out an estimate so it's easier for you to get it right. Sections contained herein include information on preparation of the site, foundations, roof and framing, electrical services, landscaping information, etc.

The reason this reduces you likelihood of making an error is that every item you add to the estimate is put into a section. The steps for preparing a foundation (digging, pouring, and related elements) fit appropriately under the Foundation Section. Including the whole line of different framing options (cost of materials and labor hours) Those should be located in the Framing section, and Roofing items are located in the Roofing section, etcetera.

Let us investigate its working. While you're readying the estimate, categorize the elements of the job under the section in which they best fit. It would be wise to calculate the sum for each category as well.

When you've finished the estimate, you now go back and review each section. Reviewing each area for the total will give you insight regarding the correct area to begin with. You must check each section to make sure there are not any double items. Upon reviewing the various sections, ensure that everything is complete, especially referring to the foundation within the section on Foundations. You proceed through every section to approve that you have everything that you require in the estimate you will give to your prospect..

Lists of sections can be viewed here:Estimating a construction project is how a profit is made for the construction company and allowing the company to see how much the project is going to cost them.com/Sections/

Feel free utilize and adjust to fit your exact requirements.

By the way, if you're not at least using a spreadsheet to prepare your estimates, you should do that as well because a spreadsheet will automatically do your calculations eliminating errors in mathematics in your estimates. It is well worth investing in a spreadsheet and the time commitment to learn how to use it, as it will help you limit your errors and frustration in construction estimating.