---
id:
aliases: []
tags:
  - authorship/original
  - destiny/permanent
  - status/incomplete
  - topic/estimating
  - type/encyclopedia
  - topic/construction
title: Construction Estimating
---
# Construction Estimating

> [!note]
> This note is intended for: _facts_
> that are _about the profession_,
> specifically, _as it is currently practiced_.

Construction estimating is a subset of cost estimation.

## Misconceptions

### Standard Practices

In general, many things thought to be standard are quite the opposite.

* Use of square receptacle symbols

### Proposals

Proposals are not legally binding,
which is a double edged sword
for intermediate subcontractors like electrical:

* Proposals to GC's can be withdrawn for any reason
* Proposals from subcontractors can be withdrawn for any reason

This is obviously not popular practice,
however it is important to recognize
that errors aren't set in stone
until a contract is signed.

Destigmatizing proposal retraction is of critical concern for subcontractors.
See [[estimating-culture]] for more on estimate error [[strategy#Game Theory]].

It's important to recognize that retracting a proposal
may upset a few people employed by the GC,
but consider how little your own opinion matters to your company's strategic decisions.
Much bigger people are involved after the proposal is accepted.

## Ethics

Clients engaging in unethical bidding practices can quickly gain a reputation for doing so,
leading to reduced bid response that can be impossible to fully recover from.

To ensure a transparent bidding process, one must

* divulge all selection criteria to bidders,
* avoid conflicts of interest,
* maintain confidentiality of bid submissions, and
* provide equal access to bidding information.

For unacceptable behavior see [[bad-bid-practice]].

### Terms

> [!info] Bid Shopping
> the practice of sharing a bidder's quote with other prospective vendors
> in order to solicit lower bids.
> The competing quote may be legitimate, fabricated,
> or a non-serious proposal from a colluding vendor.
