Construction Estimating Using Excel

Steven J. Peterson

Preference :

Estimating is the process of determining the expected quantities and costs of the materials, labor, and equipment for a construction project. The goal of the estimating process is to project, as accurately as possible, the estimated costs for a construction project, as well as the required amount of materials, labor, and equipment necessary to complete the work. The American Institute of Architects defines the work as “the construction and services required by the Contract Documents and includes all other labor, materials, equipment, and services provided by the Contractor to fulfill the Contractor’s obligations.”1 The work is often referred to as the scope of work. Estimating plays a key role in the operation of construction companies. Accurate estimates are needed for a company to be successful in the bidding process while maintaining a reasonable profit margin. If the estimates are too high, the company may starve to death because of the lack of work. If the estimates are too low, the company may lose money and go bankrupt. The estimator is constantly walking a fine line between bidding too low and too high.