Estimating

Estimate

A reasoned forecast of the likely cost of work based on the information and assumptions available at the time.

Alphabetised construction reference cards beside a drawing and scale ruler
Construction glossaryCategory: Estimating.
Definition

A reasoned forecast of the likely cost of work based on the information and assumptions available at the time.

Why it matters

An estimate is not automatically a fixed-price commitment. Its purpose and level of certainty should be stated.

Example in practice

An early estimate uses elemental rates while the design is still too incomplete for a fixed-price quote.

Use the term carefully

State the purpose, information date and review status before using an early forecast as a client commitment.

Compare related terms

Fixed price quote ยท Scope

Use the price-review checklist to keep the client wording and approved basis consistent.