Quantities and takeoffs
A quantity takeoff is the measured list of materials and work shown in the bid documents. Common units include square feet (SF), linear feet (LF), square yards (SY), cubic yards (CY), tons and each (EA). A takeoff should identify the item, unit, quantity and drawing source.
Direct and indirect costs
Direct costs are tied to installed work, including labor, material, equipment and subcontractors. Indirect costs support the project but are not assigned to one installed item, such as supervision, temporary facilities, safety, cleaning and project administration.
Allowances, alternates and unit prices
An allowance carries a stated amount for uncertain scope. An alternate adds or deducts defined work from the base bid. A unit price establishes an agreed rate for work whose final quantity may change. Each must state what taxes, labor, equipment, overhead and profit are included.
Labor burden and productivity
Labor burden is the employer cost added to base wages, such as payroll taxes, insurance and benefits. Productivity describes the quantity a crew can install per labor hour or workday. Both are required to convert measured scope into realistic labor cost.
General conditions, overhead and profit
General conditions are project-specific management and temporary costs. Company overhead supports the business across projects. Profit is the return applied after project costs and risk are evaluated. Keeping these categories separate makes an estimate easier to review.
Bid leveling and scope gaps
Bid leveling compares quotations on a common scope so exclusions and overlaps are visible. A scope gap is required work that no estimate or subcontractor carries. Written clarifications, exclusions and a responsibility matrix help prevent both problems.