Construction estimating glossary

154 terms from the bid packet, each defined in plain words. Select a term for an example and what to do about it.

A

Addendum: An addendum is a written change to the bid documents that the design team issues before bids are due. It becomes part of the contract.
Allowance: An allowance is a set amount that every bidder must carry for work the documents do not fully define yet.
Alternate: An alternate is a separate price for a defined change to the base bid. The owner can accept or reject it at award.
As-built drawings: As-built drawings show the work as the contractor installed it, with field changes marked on the contract drawings.
Assembly: An assembly is a group of materials and labor that an estimator prices as one unit. One wall type per linear foot is an example.

B

Backcharge: A backcharge is a cost that one party deducts from money it owes another party. It covers damage, cleanup or work the other party left undone.
Base bid: The base bid is the price for the work in the bid documents, before any alternates are added or deducted.
Basis of design: The basis of design is the specific manufacturer and model the designer used to design the project. Other products must match it.
Bid bond: A bid bond is a surety's guarantee. If the bidder wins, it will sign the contract and provide the required bonds.
Bid day: Bid day is the day bids are due. Subcontractors send prices to general contractors, and general contractors send their bid to the owner.
Bid form: The bid form is the owner's document for the bid. Bidders fill in their price, alternates, unit prices and addenda received.
Bid invitation: A bid invitation is a notice from a general contractor or owner that asks a company to bid a project.
Bid leveling: Bid leveling is how a general contractor compares subcontractor bids for one trade by adjusting each to the same scope.
Bid opening: A bid opening is the set time when the owner opens the sealed bids. On public work, the prices are usually read aloud.
Bid packet: A bid packet is the full set of files a bidder receives: drawings, Project Manual, addenda and bid forms.
Bid protest: A bid protest is a formal challenge to how a public owner ran a bid or chose the winner.
Bid tab: A bid tab, or bid tabulation, is a table of each bidder and price for a project or one trade.
Bill of materials: A bill of materials lists every material item a job needs, with the quantity and description of each.
BIM: BIM stands for Building Information Modeling. It is a 3D model of a building in which each object carries data such as size and type.
Blueprint: A blueprint is a construction drawing. The word comes from an old printing process that made white lines on blue paper.
Board foot (BF): A board foot is a unit of lumber volume. It equals a board 1 in thick, 12 in wide and 12 in long.
Bond: In construction, a bond is a surety company's guarantee that a contractor will meet a stated duty. Examples are finishing the work and paying suppliers.
Buyout: Buyout is the period after a general contractor wins a job. The GC awards subcontracts and purchase orders for each trade.
By others: By others is a note that says someone outside your scope will provide or install the item. The note does not say who.

C

Change order: A change order is a signed change to the contract after award. It adjusts the scope, the price, the time or all three.
Chief estimator: A chief estimator leads the estimating group. The chief decides which jobs to bid, reviews estimates and approves the final price.
Civil drawings: Civil drawings show the site work: grading, utilities, paving, drainage and erosion control. Their sheet numbers usually start with C.
Closeout: Closeout is the end stage of a project. The contractor finishes punch list work and turns in the required documents.
Conceptual estimate: A conceptual estimate is an early cost estimate made before the design is drawn in detail. It uses size, building type and past costs.
Constructability: Constructability is how practical a design is to build. A constructability review looks for details that are hard, slow or impossible to build.
Construction documents: Construction documents are the final drawings and specifications that contractors bid and build from. People shorten the term to CDs.
Contingency: Contingency is money held in an estimate or budget for costs that are likely but not yet known.
Contract documents: The contract documents are everything that forms the contract: the agreement, the conditions, the drawings, the specifications and the addenda.
Coordination drawings: Coordination drawings show the work of several trades together, so that ducts, pipes, conduit and structure do not clash.
Cost code: A cost code is a number a contractor assigns to a type of work. It tracks budget and actual cost on a job.
Count: A count is a takeoff quantity found by counting items one by one. Doors, light fixtures and floor drains are examples.
CSI: CSI is the Construction Specifications Institute. It publishes MasterFormat, the numbering system most US commercial specifications use.
Cubic yard (CY): A cubic yard is a unit of volume equal to 27 cubic feet. Concrete, soil, gravel and mulch are measured in cubic yards.
Cut sheet: A cut sheet is a manufacturer's data sheet for one product. It shows the model, sizes, options and performance.

D

Davis-Bacon: Davis-Bacon is the US federal law that requires contractors to pay prevailing wages on federally funded construction projects.
Delegated design: Delegated design makes the contractor responsible for engineering part of the work, within criteria the designer sets.
Design development: Design development is the design phase between schematic design and construction documents. People shorten the term to DD.
Design-build: Design-build is a delivery method. One company holds a single contract with the owner for both design and construction.
Detail: A detail is a large-scale drawing of a small part of the work. It shows how the pieces fit together.
Direct cost: A direct cost is a cost tied to one specific job: labor, material, equipment and subcontracts used to build it.
Division 01: Division 01 is General Requirements in MasterFormat. Its sections set the administrative rules that apply to every trade on the job.
Door schedule: A door schedule is a table on the drawings with one row per door opening. It gives size, type, material, frame, rating and hardware set.
Drawing set: A drawing set is the full group of plan sheets for a project, ordered by discipline from civil through electrical.

E

Each (EA): Each, written EA, is the unit of measure for items counted one by one.
Elevation: An elevation is a drawing that shows a vertical face of the building or a wall, viewed straight on. It also means a height above a reference point.
Escalation: Escalation is the rise in labor or material cost between the bid date and the date of purchase or installation.
Estimate: An estimate is a contractor's calculation of what a job will cost to build. It covers quantities, labor, material, equipment, overhead and profit.
Estimator: An estimator is the person who works out what a job will cost. The estimator reads the documents, takes off quantities and prices them.
Exclusion: An exclusion is a statement in a proposal that names work the bidder has not priced and will not perform.

F

Finish schedule: A finish schedule is a table on the drawings. It lists the floor, base, wall and ceiling finish for each room.
Fixture schedule: A fixture schedule is a table on the drawings. It lists each fixture type with its tag, description, manufacturer and model.
Front-end documents: Front-end documents are the bidding and contract sections at the start of the Project Manual. They are usually Division 00 and Division 01.
Furnish and install: Furnish and install means the contractor supplies the item and puts it in place. Furnish alone means supply only.

G

General conditions: General conditions are the standard contract terms. They set the rights and duties of the owner, the contractor and the architect.
General contractor: A general contractor holds the contract with the owner for the whole project. It hires subcontractors for most of the trade work.
General notes: General notes are written instructions on the drawings. They apply to a whole sheet, a whole discipline or the whole project.

H

Hard bid: A hard bid is a competitive lump sum bid on complete documents. The lowest responsive, responsible bidder usually wins.

I

Inclusion: An inclusion is a statement in a proposal that names the work the bidder has priced and will perform.
Indirect cost: An indirect cost supports the work but is not tied to one installed item. Examples are supervision, the job trailer and office overhead.
Instructions to bidders: Instructions to bidders is the front-end document that states the rules for preparing and submitting a bid.
Invitation to bid: An invitation to bid is a notice that asks contractors to bid a project. It gives the scope, the bid date and where to get the documents.

K

Keynote: A keynote is a numbered or lettered tag on a drawing. It points to a note in a list on the same sheet.

L

Labor burden: Labor burden is the cost an employer pays on top of base wages: payroll taxes, workers compensation insurance and benefits.
Labor unit: A labor unit is the number of labor hours needed to install one unit of an item. Examples are hours per fixture or per linear foot.
Lead time: Lead time is the time between placing an order and receiving the material on site. It includes submittal approval and manufacturing.
Legend: A legend is a key on the drawings that shows what each symbol, line type, hatch pattern and abbreviation means.
Linear foot: A linear foot is one foot of length, measured in a straight line along an item. Width and height do not count. It is written LF.
Liquidated damages: Liquidated damages are a set amount per day that the contract charges the contractor if the work finishes late.
Low bidder: The low bidder is the company with the lowest price among the bids received.
Lump sum: A lump sum is one fixed price for a defined scope of work. The contractor carries the risk of quantity and cost.

M

Margin: Margin is the part of the selling price that is left after cost. It is stated as a percent of the price.
Markup: Markup is the amount added to cost to reach the selling price. It is stated as a percent of cost.
MasterFormat: MasterFormat is the standard numbering system for construction specifications in the US and Canada. It sorts work into 50 divisions.
Material quote: A material quote is a supplier's price for a list of materials. The quantities come from the contractor or the supplier's own takeoff.
Material takeoff: A material takeoff is a list of the materials a job needs, with quantities measured or counted from the drawings.
Means and methods: Means and methods are the ways a contractor chooses to build the work: the techniques, sequence, equipment and temporary supports.
Mock-up: A mock-up is a full-size sample of part of the work. The architect approves its look and quality before the rest goes in.

N

NIC (not in contract): NIC means not in contract. It marks an item that is shown on the drawings for reference but is not part of this construction contract.
Notice to proceed: A notice to proceed is the owner's written notice that tells the contractor to start work. It usually sets the start of the contract time.

O

OFCI: OFCI means owner furnished, contractor installed. The owner buys the item and the contractor installs it.
OFOI: OFOI means owner furnished, owner installed. The owner buys and installs the item, outside the construction contract.
On-screen takeoff: On-screen takeoff is measuring and counting from digital plan sheets on a computer. It replaces paper prints and a scale ruler.
One-line diagram: A one-line diagram is an electrical drawing that shows the power system with single lines and symbols. It runs from service to panels.
Or equal: Or equal is spec language that lets a bidder offer a product other than the one named. The product must match the named one.
Overhead: Overhead is the cost of running the company that no single job pays for directly. Examples are office rent, office staff and insurance.
Owner furnished: Owner furnished means the owner supplies the item. The contractor does not buy it, but may still have to install it.

P

Panel schedule: A panel schedule is a table on the electrical drawings. It lists each circuit in a panelboard, with its breaker size and load.
Payment bond: A payment bond is a surety's guarantee that the contractor will pay its subcontractors, suppliers and workers for the project.
Performance bond: A performance bond is a surety's guarantee that the contractor will complete the work as the contract requires.
Plan room: A plan room is a place, now usually a website. Contractors use it to find projects out for bid and download the bid documents.
Plan sheet: A plan sheet is one page of the drawing set. Each sheet has a number, a title and a title block.
Plumbing riser: A plumbing riser is a schematic drawing. It shows waste, vent and water piping as it runs up through the building.
Pre-bid meeting: A pre-bid meeting is held by the owner or architect before bid day. They explain the project and answer bidder questions.
Pre-construction: Pre-construction is the phase before work starts on site. It covers budgets, estimates, schedule planning, design review and buyout.
Prequalification: Prequalification is a review that an owner or general contractor uses to approve a company before that company may bid.
Prevailing wage: Prevailing wage is the minimum hourly wage and fringe rate that a public project requires for each trade classification.
Prime contractor: A prime contractor holds a contract directly with the owner. Subcontractors hold contracts with the prime, not with the owner.
Project Manual: The Project Manual is the bound book of written bid and contract documents. It holds the bidding requirements, contract conditions and specifications.
Proposal: A proposal is the written offer a contractor sends. It states the price, the scope, the inclusions, the exclusions and the terms.
Punch list: A punch list is the list of incomplete or defective items the architect or owner finds near project completion.

Q

Qualification: A qualification is a statement in a bid that explains an assumption or a condition behind the price.
Quantity survey: A quantity survey is a complete, detailed measurement of all the materials and work in a project. It comes from the drawings.
Quantity takeoff: A quantity takeoff is the list of measured and counted quantities for a job. It comes from the drawings and specifications.

R

Record drawings: Record drawings are the final set of drawings. They show the project as built, including changes made during construction.
Reflected ceiling plan (RCP): A reflected ceiling plan is a drawing of the ceiling as if a mirror on the floor reflected it. It shows ceiling types, heights and devices.
Responsible bidder: A responsible bidder is a company that has the ability, the resources and the record to perform the contract.
Responsive bid: A responsive bid is a bid that meets every requirement of the bid documents in form, content and timing.
Retainage: Retainage is a share of each progress payment that the owner holds back until the work is complete.
Revision cloud: A revision cloud is a scalloped outline on a drawing that marks an area changed since the last issue.
RFI (request for information): An RFI is a written question to the architect or owner. It asks about something unclear, missing or in conflict.
RFP (request for proposal): An RFP is a request for an offer that the owner scores on more than price. Approach, team and schedule also count.
RFQ (request for quote or qualifications): RFQ has two meanings. It can mean a request for a price quote, or a request for a firm's qualifications without a price.
Riser diagram: A riser diagram is a schematic drawing that shows how a system runs vertically through a building, floor by floor.
Room finish schedule: A room finish schedule is a table that lists the floor, base, wall and ceiling finish for each room.
Rough order of magnitude (ROM): A rough order of magnitude is an early cost estimate made with little design information. It gives a range, not a firm price.

S

Schedule of values (SOV): A schedule of values is a breakdown of the contract sum into line items. The contractor bills against it each month.
Schematic design (SD): Schematic design is the first design phase. The drawings show the general layout, size and look of the building, with few details.
Scope gap: A scope gap is work the project needs that no bidder has included in a price.
Scope letter: A scope letter is a written statement from a subcontractor that lists what the bid includes, excludes and assumes.
Scope of work: The scope of work is the full description of what one party must do under a contract or a bid.
Scope review: A scope review is a meeting or checklist. The general contractor and a subcontractor confirm exactly what the sub's price includes.
Section (drawing): A section is a drawing that shows a building or a part of it as if cut through vertically. It shows what is inside.
Sheet index: A sheet index is the list of every drawing sheet in the set, by number and title. It is usually on the cover sheet.
Shop drawing: A shop drawing is a drawing made by a contractor, fabricator or supplier. It shows exactly how they will build the work.
Site plan: A site plan is a drawing of the whole property from above. It shows the building, paving, utilities, grading and property lines.
Soils report: A soils report, or geotechnical report, describes the ground under a site. It is based on borings and lab tests.
Spec book: Spec book is the common name for the Project Manual, the bound volume of bidding requirements, contract conditions and specifications.
Spec section: A spec section is one numbered part of the specifications. It covers one type of work, such as 09 51 00 Acoustical Ceilings.
Specification: A specification is the written part of the contract documents. It states the products, the quality and the installation rules for the work.
Square (roofing): A square is a roofing unit equal to 100 square feet of roof surface.
Square foot (SF): A square foot is a unit of area equal to a square that is 1 ft on each side. Estimators write it as SF.
Structural drawings: Structural drawings show the parts that hold the building up: foundations, columns, beams, slabs, framing and connections.
Sub bid: A sub bid is the price and scope a subcontractor sends to a general contractor for one trade.
Subcontractor: A subcontractor is a company that does one part of the work. Its contract is with the general contractor, not the owner.
Submittal: A submittal is a document or sample a contractor sends to the architect before it orders. It shows what the contractor will furnish.
Substitution request: A substitution request is a formal request to use a product other than the one the specification names.
Supplementary conditions: Supplementary conditions are contract terms that change or add to the general conditions for one specific project.
Supplier quote: A supplier quote is a written price from a supplier or manufacturer for the materials or equipment on a job.

T

Takeoff: A takeoff is the work of measuring and counting everything a job needs from the drawings and specs. It is also the list that results.
Takeoff sheet: A takeoff sheet is the form or spreadsheet where an estimator records each item, quantity, unit and source.
Tax exempt: Tax exempt means the project owner does not pay sales tax on some or all purchases for the project.
Time and materials (T&M): Time and materials is a way to pay for work by actual labor hours and material cost. Rates and markups are agreed in advance.
Title block: A title block is the bordered area on a drawing sheet. It holds the project name, sheet number, title, date, scale and revisions.

U

Unit of measure (UOM): A unit of measure is the unit a quantity is counted or measured in. Examples are each, linear foot, square foot and cubic yard.
Unit price: A unit price is a fixed price for one unit of work. Examples are a cubic yard of rock excavation or a linear foot of pipe.

V

Value engineering (VE): Value engineering is a review of the design. It looks for ways to lower cost while the building still does its job.

W

Wall type: A wall type is a coded wall assembly on the drawings. The code tells you the studs, the layers, the insulation and the rating.
Warranty: A warranty is a written promise to repair or replace defective work or products for a stated period after completion.
Waste factor: A waste factor is the extra material an estimator adds to the measured quantity. It covers cuts, breakage, laps and layout loss.

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