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Estimating & Bidding

Final Estimate

In Plain English

The complete and accurate cost estimate prepared just before submitting a bid.

Definition

A final estimate is the most complete and accurate cost projection for a project, prepared from fully developed construction documents immediately before bidding. It serves as the basis for a contractor's bid submission and typically carries accuracy within plus or minus 5%. The final estimate incorporates all subcontractor quotes, material pricing, and general conditions costs.

Why It Matters in Bidding

The final estimate is the number that becomes your bid, so any gaps in scope, missing sub quotes, or stale material pricing translate directly into lost margin or a non-competitive submission. Because it is locked in immediately before the deadline, it must reconcile every addendum and the latest subcontractor bids, leaving no room for placeholder allowances on major trades.

Example

Two hours before the bid deadline, the chief estimator swaps a budget plug for the low electrical sub's firm quote, re-totals general conditions, and applies a 7% markup to set the final estimate at $4.2 million.

Related Terms

Detailed EstimateEstimateBidQuantity Takeoff

Frequently Asked Questions

Earlier estimates rely on square-foot or assembly costs with wide contingencies because documents are incomplete. The final version is built from detailed quantity takeoffs, firm subcontractor quotes, and current supplier pricing tied to 100% construction documents, which is why its expected accuracy band tightens dramatically compared to early-stage numbers.
Late addenda changing scope, a low sub pulling their number, volatile commodity pricing like steel or copper, and forgotten general conditions or bond and insurance costs. Estimators guard against this with a bid-day checklist, locked allowances, and a final scope review so no major trade gets carried as an unverified plug.
The base final estimate captures direct costs, subcontractor quotes, and general conditions. Overhead, profit markup, contingency, bonds, and escalation are typically layered on as separate, adjustable lines so leadership can tune competitiveness on bid day without disturbing the underlying cost buildup.

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