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Building Estimating

How to structure, measure, and price a building project with accuracy and confidence.

Understanding the Role of the Estimator

Estimating is more than “pricing a build”. It’s a structured forecasting process that blends technical knowledge, measurement accuracy, supplier relationships, and risk awareness. A good estimate isn’t just a number — it is a financial roadmap for the entire project.

Types of Estimates

Preliminary / Feasibility Estimates

Used early in a project, based on historical rates and broad assumptions. Suitable for concept plans or developer feasibility studies.

Detailed Estimates

A line-by-line breakdown of every trade, task and material. This level of detail is required for fixed-price residential contracts in Australia.

Bill of Quantities (BoQ) Based Estimates

Common in commercial work. The BoQ becomes the contract pricing schedule — contractors price the quantities provided by the QS.

The Measurement Process

Regardless of software or spreadsheet, the measurement workflow remains consistent:

  1. Review drawings and specifications.
  2. Establish assumptions (site access, soil class, finishes, services extent).
  3. Measure quantities by trade.
  4. Apply labour, material and subcontractor rates.
  5. Add overheads, margins, and allowances.

Key Quantities Every Estimator Must Understand

  • Concrete: Volume (mÂł), mesh, bar schedules, pump time, curing requirements.
  • Timber/Steel: Linear metres, sections, connections, bracing requirements.
  • Cladding & Linings: m² coverage including waste factors.
  • Services: Usually subcontract priced — but the estimator must validate against benchmarks.

Common Estimating Mistakes

  • Forgetting site-specific costs: Rock, spoil removal, temporary fencing, erosion control.
  • Failing to read engineering revisions: A single change in a footing detail can add thousands.
  • Assuming rates are universal: A carpenter in inner Melbourne is not the same rate as one in regional QLD.

Expert Tip: A good estimate makes risk visible. Every “grey area” should be highlighted, clarified, or an allowance added.