🧾 Module 7: Creating & Reviewing the Final Estimate
Pull everything together into a complete estimate and learn how to review it for accuracy and clarity before submission.
🎯 Learning Objectives
By the end of this module you will: (1) assemble a complete cost summary and map it to the client’s bid form; (2) level vendor and subcontractor quotes for scope, pricing, lead times, and terms; (3) apply contingency, overhead, and profit in the correct order—using margin to set the final price; and (4) complete a final QA/QC with clear clarifications, inclusions/exclusions, allowances/alternates, and a professional submission package.
📌 Build the Cost Summary & Complete the Bid Form
Combine all takeoffs into a clean cost summary: labor (hours × rate), materials (with quoted pricing), equipment, subs, permits/fees, tax, freight, and small tools as applicable. Map each line to the client’s bid form (divisions/sections) and double-check unit price schedules, alternates, and add/deduct lines so your totals reconcile exactly with the form.
📌 Level Vendor & Subcontractor Quotes
Gather multiple quotes for major scopes (e.g., lighting packages, switchgear, fire alarm, controls). Create a simple leveling sheet to normalize scope, freight, taxes, lead times, warranties, submittals, and exclusions. Identify the preferred and a vetted backup. Note any scope gaps you must cover in your estimate or call out in clarifications.
📌 Apply Contingency, Overhead & Profit (in the Right Order)
Finish the pricing stack: Direct Cost → Contingency → Overhead → Profit (margin). Confirm you’re using margin (on price) rather than markup (on cost) if the target is a margin. Quick check: Price = (DC × (1 + Cont) × (1 + OH)) ÷ (1 − Margin). Verify that allowances and alternates are separated from contingency so the PM can manage them after award.
📌 Final QA/QC, Clarifications & Submission Package
Run a last-look checklist: math audit, scope walk by drawing/spec section, compare to past jobs and per-SF benchmarks, confirm crew/productivity assumptions, and review long-lead risks. Draft a clean list of clarifications, inclusions/exclusions, allowances, alternates, unit prices, schedule constraints, bonding/taxes. Package the estimate with a professional cover letter and be sure the total matches the signed bid form.
📘 Overview
In this module, you’ll assemble the complete estimate, align it to the client’s bid format, correctly layer contingency/overhead/profit, level supplier and subcontractor quotes, and package a clean, defensible submission.
🧩 Cost Summary — Sample Structure
| Division/Scope | Labor $ | Material $ | Equip/Subs $ | Subtotal $ |
|---|---|---|---|---|
| 26 05 19 – Wiring Devices | $12,400 | $9,800 | $0 | $22,200 |
| 26 05 33 – Raceways & Cables | $28,600 | $31,400 | $4,200 | $64,200 |
| 26 24 16 – Panelboards | $6,800 | $22,000 | $1,200 | $30,000 |
| Direct Cost (DC) | — | $116,400 | ||
📨 Quote Leveling — Mini Sheet
| Item | Vendor A | Vendor B | Notes / Gaps |
|---|---|---|---|
| Lighting package | $82,400 (4 wks) | $79,900 (6 wks) | B excludes emergency inverters |
| Switchgear | $145,000 (20 wks) | $149,500 (18 wks) | A excludes field metering CTs |
| Fire alarm devices | $26,800 (submittals incl.) | $25,600 | B excludes as-builts |
🧮 Final Price Calculator
Compute price with the correct order: DC → Contingency → Overhead → Profit (margin).
🔁 Margin ↔ Markup Converter
🧠 Risk & Contingency Matrix (Example)
| Risk Item | Likelihood | Impact | Suggested Cont. | Notes |
|---|---|---|---|---|
| Unknown existing conduits | Med | Med | 3% | Occupied facility; add night work access language |
| Switchgear lead times | High | High | 5% | Require schedule acceptance; offer VE alt if delayed |
| Ceiling congestion | Med | Low | 2% | Coordinate with duct/trade racks; BIM clash review |
📝 Clarifications / Inclusions / Exclusions (Template)
📑 Submission Package Checklist
- Signed bid form (totals, alternates, unit prices) — numbers agree with cost summary
- Cover letter (scope summary, assumptions, schedule, contact)
- Clarifications/inclusions/exclusions sheet
- Quote log (vendor/sub list with timestamps)
- Required forms: bonds, non-collusion, WMBE, schedule of values, etc.
- Breakout per client’s requested divisions/sections
🧪 QA/QC — Last Look Before Send
- Reconcile quantities to drawings/spec sections (legend, keynote, details)
- Math audit: random-line check + totals check + tax/bond application order
- Compare per-SF or per-unit metrics to similar past jobs (±10–15% reasonableness)
- Crew assumptions & productivity factors reviewed with a foreman
- Long-lead items and outages/shutdowns called out in clarifications
- Peer review: one colleague signs off on scope and numbers
🕒 Bid-Day Timeline (Guide)
- T-24h: Confirm all vendor RFQs sent; list open items.
- T-4h: Update leveling sheet; choose prelim winners + backups.
- T-2h: Lock quantities; freeze changes except quote swaps.
- T-1h: Apply final contingency/OH; compute price; print bid form.
- T-30m: Final QA/QC; match numbers on cover letter & form.
- Submit: Confirm receipt; archive package and version stamp.