In the regulation an estimate is a construction specialist's calculation of the costs expected to implement a building project. In everyday speech the same word covers any price calculation for a client — both meanings coexist, and it is worth knowing which one is meant.
Terms worth knowing
Work quantity — the measurable amount of work, verifiable after completion. Labour input — the time needed, in man-hours. Wage rate — one worker-hour gross, including payroll taxes. Direct costs — materials, labour and plant tied to the described work. Plant costs — hire, running and depreciation of machinery, aids and tools, plus moving materials within the site. Overheads — setting up and running the site, organising and managing the work, safety and insurance.
Two are commonly misread: the wage rate is gross, not take-home; and plant covers tool depreciation and on-site material handling, not only excavator hire.
Who may prepare one
Project estimates must be prepared and checked by a certified construction specialist with independent practice rights; if the author is not certified, a certified specialist checks and signs. A quotation for a private client is not a project estimate and needs no certificate.
See the estimate template and common mistakes.