An estimate is not a single number. It is a set of assumptions, and the value of reading it properly is that it tells you where the risk sits before you sign anything.
What a complete estimate contains
- Sitework and civil — clearance, excavation, drainage, utilities, paving.
- Structure — foundations, framing, floors and roof.
- Envelope — cladding, roofing, windows and waterproofing.
- Building systems — mechanical, electrical, plumbing and fire.
- Finishes — interior fit-out and fittings.
- General conditions — supervision, temporary works, insurance, permits.
- Contingency — stated openly, with a figure attached.
Warning signs
Be cautious of a breakdown with no contingency, or one that lumps large scopes into a single line. A figure for ‘sitework’ with no detail underneath cannot be checked or compared. An estimate that avoids stating its allowances and exclusions is usually holding a surprise.
What to ask for
Ask which items are excluded, what allowance has been made for each one, and which assumptions the price depends on. A contractor who answers clearly is easier to work with than one who does not.
— Asif Memon