How it works
The takeoff gives a quantity with a unit. The estimate gives a cost for that same unit. Multiply the two and you have the cost of the line. The units must match. A takeoff in square yards and a cost per square foot gives a wrong line.
What goes into a unit cost
- Material. The price from the supplier, with freight and tax if they apply.
- Labor. The labor unit times the crew rate.
- Equipment. Lifts, tools and rentals spread over the work.
- Subcontract cost, if part of the line is sublet.
Some companies build overhead and profit into the unit cost. Others add them at the bottom. Know which kind of number you are looking at before you use it.
Where unit costs come from
- Your own finished jobs. This is the best source.
- Current supplier quotes.
- Published cost data, adjusted for your area.
- A build-up from labor units and wage rates.
Limits of a unit cost
A unit cost is an average. It holds when the new job looks like the jobs it came from. Small quantities cost more per unit than large ones. Work at height, in an occupied building or far from the shop costs more. Adjust the number for the job in front of you.
Unit cost and unit price
The two terms are not the same. A unit cost is what the work costs you. A unit price is what you charge the customer for one unit. A unit price includes your overhead and profit. Bid forms ask for unit prices.
Bidding and estimating · Updated 11 Nov 2026