1. Building Economy ARE 431
Dr. Mohammad A. Hassanain 1
Detailed Estimating
2
Detailed Estimating - Introduction
Detailed estimates are typically prepared towards the
end of the design phase, as they require precise
project information.
A detailed estimate which is prepared by the project
team will be used to determine the fair cost for the
project and is called a fair cost estimate.
Contractors who are bidding the project also prepare
detailed estimates.
These estimates are called bid estimates and, when
accepted by the owner, form the contract price for the
project.
Detailed estimates take weeks to prepare and involve
many people from many different disciplines.

2. Building Economy ARE 431
Dr. Mohammad A. Hassanain 2
3
Detailed Estimating - Introduction
A general contractor who is preparing a bid will request
proposals from subcontractors for the work that is
being subcontracted out.
The general contractor will quantify (“take off”) and
price work that will be done by its own work forces.
Quotes from material suppliers (vendors), will be
utilized where possible to get precise material prices.
Where quotes can not be obtained, contractors will
utilize company records and published cost data.
The contractor must obtain good information on
projected wage rates and needs to precisely figure
worker productivity to calculate durations.
4
Detailed Estimating - Introduction
Good organization is the key to prepare reliable
estimates and avoiding mistakes.
Estimates are generally broken down by bid packages,
so the subcontractors bids received must be tied to the
appropriate package.
Each subcontractor bid received must be checked to
ensure that the bid is accurate and includes the
precise work requested.
Work that is to be done by the contractor’s own work
forces, also termed “in-hose” work, must be properly
quantified and checked.
Material quotes received must also be verified.
Labor unit prices must be calculated and projected to
the time frame when the work will be accomplished.

3. Building Economy ARE 431
Dr. Mohammad A. Hassanain 3
5
Detailed Estimating - Introduction
The total of all the subcontracted work and in-house work,
materials, labor, and equipment is called the direct cost of
the project.
To this total, the costs required to manage the job in the filed
and at the home office must be added.
These costs are called indirect costs.
The contractor must also add in expected profit.
To prepare a detailed estimate:
We will look first at how to determine the quantities
involved on a project.
How to organize the takeoff process.
How to measure and break down the data so proper unit
prices can be attached.
We will examine the steps involved in pricing.