Construction estimating glossary.Terms defined clearly.

Estimate and takeoff types

**Quantity takeoff (QTO)** — A measurement of the work shown in construction documents. Records lengths, areas, volumes, and counts by trade or assembly, with units and drawing references. Does not include pricing unless separately agreed.

**Material takeoff** — A schedule of physical materials identified in construction documents, including product specifications, sizes, quantities, and purchasing adjustments such as waste and stock lengths.

**Cost estimate** — Quantities combined with labor, material, equipment, and subcontractor pricing to forecast the cost of a defined scope. Should include its document basis, price sources, date, exclusions, and uncertainty.

**Preliminary estimate / conceptual estimate** — An early-stage cost forecast based on program, design criteria, and comparable project data rather than fully measured quantities. Should clearly state its assumptions and limitations.

**Bid estimate** — A cost estimate assembled for a specific tender or proposal, reconciled to the bid form, issued addenda, and required alternates.

**Design-build estimate** — A cost plan prepared by a design-build team as the design evolves. The estimate informs design decisions rather than being based on complete construction documents.

**Change order estimate** — An estimate of the cost impact of a proposed design or scope change after contract award.

Scope and document terms

**Scope of work** — A written or drawn description of the work included in a contract or estimate. It should identify inclusions, exclusions, and interfaces with other scopes.

**Scope gap** — Work that is required for the project but not assigned to any contractor in the estimate or bid package.

**Scope overlap** — Work that is counted in more than one contractor's estimate, creating potential double-counting.

**Basis of estimate** — A written summary of the documents, assumptions, exclusions, price sources, and uncertainty behind an estimate.

**Drawing register** — A record of the sheet numbers, issue dates, specifications, and addenda used in a takeoff.

**Addendum (plural: addenda)** — Formal written changes to bid documents issued before bid submission. Failure to incorporate addenda can cause scope errors.

**RFI (Request for Information)** — A formal question submitted to the design team seeking clarification on drawings or specifications.

**Alternate** — A separately priced scope item that adds to, deducts from, or replaces the base bid. Allows the owner to adjust scope without re-bidding.

Cost and pricing terms

**Direct cost** — The cost of labor, material, and equipment directly used to install the work. Does not include overhead, profit, or indirect costs.

**Indirect cost / general conditions** — Project-level costs that support all trades but are not directly installed: supervision, temporary facilities, insurance, bonds, site management, and similar items.

**Overhead** — Company-level operating costs not captured in direct or general conditions costs: office rent, marketing, management, and similar expenses.

**Markup** — A percentage applied to cost to establish a selling price. A 20% markup means selling price = cost × 1.20. Markup is cost-based.

**Margin** — A percentage of revenue representing profit. A 20% margin means profit = 20% of selling price. For a $1,000 cost, a 20% margin requires a selling price of $1,250, not $1,200.

**Allowance** — An agreed budget for a decision not yet made. It is labeled and visible in the estimate rather than hidden in a unit rate.

**Contingency** — A provision for uncertainty, distinct from allowances. It may cover design development, unknown conditions, or market risk depending on the project agreement.

**Escalation** — An adjustment for expected price changes between the estimating date and the procurement or installation date.

**Unit price** — A cost per defined unit of measure (per cubic yard, per square foot, per linear foot). A complete unit price should state whether it includes labor, material, equipment, and overhead.

**Lump sum** — A fixed price for a defined scope, regardless of actual quantities. The contractor bears quantity risk.

**Unit-price contract** — A contract where payment is based on measured quantities at agreed unit prices. The owner bears quantity risk.

**Bid bond** — A financial guarantee that the winning bidder will enter into a contract at the offered price.

Measurement and quantity terms

**Net quantity** — The measured quantity of a material or work item without waste or purchasing adjustments.

**Waste factor** — An addition to net quantity to account for cutting, lapping, breakage, and other material losses. Should be documented separately from the net measurement.

**CSI MasterFormat** — A standard North American classification system for construction work developed by the Construction Specifications Institute. Commonly used to organize estimates, specifications, and cost codes.

**Bank measure / BCY** — Earth volume measured in its undisturbed natural state (bank cubic yard).

**Loose measure / LCY** — Earth volume after excavation, which expands due to voids (loose cubic yard).

**Compacted measure / CCY** — Earth volume after compaction (compacted cubic yard).

**Shrink / swell** — The change in volume when soil is excavated (swell) or compacted (shrink) relative to its natural state.

**Form contact area / SFCA** — The surface area of formwork in contact with concrete. Used to price concrete formwork independently of concrete volume.

**Shop drawings** — Detailed fabrication and installation drawings prepared by a manufacturer or subcontractor for review by the design team.

**Submittal** — A document or sample submitted by the contractor for design team review to confirm compliance with the contract documents.

Arizona-specific and local terms

**Caliche** — Calcium carbonate-cemented soil common in parts of Arizona and other arid regions. Can range from soft lime accumulations to rock-like layers. Presence, depth, and character are site-specific and should be confirmed by geotechnical investigation rather than assumed.

**Dust control permit** — A permit required by Maricopa County and other jurisdictions for soil disturbance over a defined threshold (0.1 acre in Maricopa County). Cost responsibility should be assigned in the scope matrix.

**APS / SRP / TEP** — Arizona Public Service, Salt River Project, and Tucson Electric Power. The primary electric utilities serving the Phoenix metro and Tucson areas respectively. Each has different service territory, connection standards, and coordination requirements.

**ADWR** — Arizona Department of Water Resources. Relevant for projects involving water rights, assured water supply determinations, or large water users.

**ARC** — Arizona Registrar of Contractors. The state licensing authority for contractors performing construction work in Arizona.

**Pad** — In Arizona residential construction, a prepared and graded building site, often including a compacted subbase ready for foundation work.

**Cool roof** — A roofing system designed to reflect solar radiation and reduce heat absorption. Required by energy codes in certain Arizona building types and relevant to estimating roofing specifications.