Knowing the numbers from the start can make all the difference in how your next construction project plays out. Different types of estimates can make or break the calculation process. From quick ballpark figures to detailed breakdowns, each type of estimate plays a unique role in helping teams plan, budget, and build smarter.
Traditional estimating models aren’t enough anymore – especially when working with big, fast-moving, and complex projects. That’s where construction estimates additional options come in. New tools and approaches are changing the industry and helping teams move beyond static spreadsheets and guesswork, so they can achieve results like never before.
Curious about upgrading your current systems to use the latest AI and technology? Keep reading to learn the most common types of construction estimates, how they work, and when to use them. We’ll also touch on how tech is reshaping building construction cost estimation—giving you a clearer path from bid to build with fewer surprises along the way.
What Are The Different Types of Construction Cost Estimates?
If you’re in the corporate side of the construction industry you know cost estimates are a big deal—they’re what guide your planning, budgeting, and key decisions from start to finish. As a project moves forward, different types of estimates come into play, each offering a different level of detail and accuracy. Knowing which estimate to use (and when) helps everyone involved make smarter choices, avoid surprises, and keep the project running smoothly.
- Preliminary Estimates/Conceptual Estimates: These are rough calculations made during the early stages of a project. They provide a general idea of the project's cost based on limited information, helping determine feasibility.
- Detailed Estimates: Once project details become more defined, you can create detailed estimates that break down costs into specific components like materials, labor, and equipment. This type of estimate offers a comprehensive view of all expected expenses.
- Quantity Estimates: This type of estimate zeroes in on exactly how much material and labor a project will need. Think of it like creating a super detailed shopping list—down to how many bricks, beams, or gallons of paint you'll need, and how many hours of work it’ll take to get the job done. This is known as accurate quantity takeoffs—a careful count of every item and task involved. Getting this right is essential for setting a realistic budget, while ordering the right materials, and avoiding delays.
- Bid Estimates: Ready to send a competitive bid for a project? That’s where bid estimates come in. They include detailed cost breakdowns and account for profit margins.
- Control Estimates: This type of estimate is used once construction is underway to help keep track of spending. Control estimates help you track how actual costs compare to what you originally budgeted. If something starts to go off course, they make it easier to spot the issue and act before it gets too costly.
What Are The Different Components of Construction Estimates?
A solid construction estimate is made up of several key components that work together to give a clear picture of what a project will actually cost. Understanding each part helps teams plan smarter, while avoiding costly surprises.
- Direct Costs: We’re talking the obvious expenses—materials, labor, and equipment. Direct costs include everything that physically goes into building the project, from concrete and steel to wages and machinery.
- Indirect Costs: These are essential expenses for the project to come to fruition, but they aren’t tied to a single task. For example, think about site security, utilities, permits, insurance, and temporary facilities. They support the build without showing up on the structure itself.
- Overhead: Overhead includes the general costs of running the business—office staff, software subscriptions, legal fees, and marketing. These expenses are spread across multiple projects.
- Profit Margin: This part is important to ensure the contractor earns a profit for their hard work. It is typically a percentage of the total cost.
- Contingency: Because construction rarely (if ever) goes entirely as planned, a contingency is included to cover unexpected changes, delays, or price increases.
By breaking down these components, your building construction cost estimation becomes more accurate and defendable. And with a platform like ALICE, these elements don’t just sit in a spreadsheet—they’re actively tied to your project’s real-world schedule, so you can make the best decisions every step of the way.
By leveraging tools like ALICE Technologies, construction professionals can enhance the accuracy and efficiency of these estimates, leading to better project outcomes.
More Types of Construction Estimates
Now that we’ve covered the core estimates used throughout the project lifecycle, we will break down some other types of construction estimates that serve specific purposes—especially on more complex builds.
Feasibility estimates, often used early in the process, help determine whether a project is even worth pursuing. They’re rough, high-level numbers that give owners and stakeholders a general idea of cost before any serious planning begins.
Preliminary estimates follow soon after and are based on early designs or conceptual plans. These are not highly detailed, but they’re more refined than feasibility estimates and are important when it comes to early budgeting and financing decisions.
Detailed estimates come into play once drawings and specifications are more complete. These involve accurate quantity takeoffs and break costs down by labor, materials, equipment, and more. They’re essential for both budgeting and competitive bidding.
Change order estimates are used when the scope of work shifts mid-project. Whether it’s an unexpected delay, a design tweak, or a materials upgrade, this estimate helps assess how the change impacts cost and schedule.
Each of these estimates plays a unique role. When used together—and powered by smart tools like ALICE—they give you a more flexible, accurate view of your project from start to finish.
4 Stages of Construction Estimating
Construction estimating isn’t just a one-time task. It’s a process that evolves as a project moves through each stage of development. Understanding the four key stages helps teams stay aligned, make better decisions, and encounter fewer surprises along the way.
- Preliminary (or Conceptual) Estimate
This happens at the earliest stage, often before you even have a detailed plan. Based on basic information—like square footage or project type—it provides a rough idea of cost. It’s helpful for feasibility studies and early budgeting but comes with a wide margin of error. - Schematic (or Budget) Estimate
Once the design starts coming together, this estimate pulls from early drawings and sketches to give you a clearer idea of what the project will cost. It helps owners and teams figure out if things are still on budget. It also helps make important decisions—like which materials to use, what systems to include, and how to shape the overall scope of the build. - Design Development (or Detailed) Estimate
Once plans start to look more complete, it’s time to dive into specifics with this estimate – which is used for bidding and financing. Accurate quantity takeoffs are performed, and costs are broken down by trade, labor, materials, and more. - Construction (or Control) Estimate
Created just before construction begins, this estimate is based on final documents and serves as a baseline for tracking real-time costs. It’s also updated during the build to compare projections against real-world progress and make any adjustments as needed.
Smart tools like ALICE harness the power of AI to connect each estimate to a real-world schedule. As a result, you create a clear roadmap for your project that’s flexible, accurate, and ready for whatever comes your way.
How Can ALICE Help With Effective Cost Estimates in Construction
ALICE Technologies takes construction estimating to the next level by combining AI with real-time project data. Instead of relying on static spreadsheets, ALICE simulates thousands of build scenarios, helping you find the most cost-effective path forward. It integrates with your existing BIM and scheduling tools and adjusts estimates as project conditions change. That means you’re always working with the most accurate numbers. Whether you're bidding or building, ALICE helps reduce risk, save time, and stay on budget.
Book a demo to see how ALICE can transform your estimating process.