Whoever works on the construction estimate will look at the construction plan and many other construction documents to determine what the overall cost of the build will be. Each person and organization might have a different method for making this forecast, but most will include these key components:

• Direct Costs: This is money spent on construction activities, such as materials, labor and equipment.

• Indirect Costs: These are costs not directly allocated for construction activities, such as quality control, security, utilities, admin, legal fees, permits, etc.

• Labor Hours: The rate you pay your team, which includes a basic wage and an estimate for the cost of each task. Include taxes and potential overtime.

• Subcontractor Costs: Estimate the cost of work that will be contracted out to subcontractors, including labor, materials and equipment.