When you receive a build estimate, it can feel like deciphering a foreign language. Between line items, contingencies, and technical jargon, it’s easy to feel overwhelmed. But understanding your estimate is crucial—not just to avoid surprises, but to ensure your project stays on track, on budget, and aligned with your expectations.
In this blog, we’ll break down how to get the most out of your build estimate and highlight the common limitations you should be aware of.
1. What Is a Build Estimate, Really?
A build estimate is a forecast of the total cost of your construction project. It typically includes:
- Materials
- Labour
- Subcontractor fees
- Permits and inspections
- Overheads and profit margins
But it’s important to remember: an estimate is not a fixed quote. It’s a best-guess based on current information, and it can change.
2. How to Get the Most Value from Your Estimate
a. Ask for a Detailed Breakdown
A good estimate should be itemized. This transparency helps you understand where your money is going and allows you to compare quotes more effectively.
b. Clarify What’s Included (and What’s Not)
Are landscaping, fixtures, or utility connections included? If not, you’ll need to budget for them separately.
c. Understand the Contingency
Most estimates include a contingency—typically 5–15%—to cover unexpected costs. This is not a buffer for overspending; it’s a safety net for the unknown.
d. Compare Apples to Apples
When reviewing multiple estimates, ensure they’re based on the same scope, materials, and specifications. Otherwise, the cheapest option may not be the best value.
3. Recognizing the Limitations of Your Estimate
a. Market Volatility
Material and labour costs can fluctuate. An estimate is based on today’s prices, not tomorrow’s.
b. Incomplete Designs
If your plans aren’t finalized, your estimate will be less accurate. Changes during construction can lead to cost increases.
c. Site-Specific Surprises
Soil conditions, access issues, or hidden structural problems can all impact costs once work begins.
d. Human Error
Even experienced estimators can make mistakes. That’s why it’s wise to review the estimate carefully and ask questions.
4. Tips for Navigating the Estimate Process
- Get multiple estimates to benchmark pricing.
- Work with reputable contractors who are transparent and communicative.
- Use contracts that clearly define scope, timelines, and payment terms.
- Stay involved throughout the project to catch issues early.
Conclusion
A build estimate is a powerful tool—but only if you understand how to use it. By asking the right questions, recognizing its limitations, and staying engaged, you can turn your estimate into a roadmap for a successful build.
by Kevin Knox