Easily one of the most important parts of planning any building project is figuring out your construction material cost. Materials tend to take up a large chunk of the budget, so it’s important to get a solid estimate upfront to avoid headaches down the road. Whether you’re a contractor, owner-builder, regardless of your title, learning how to estimate construction cost (especially for materials) is a skill that truly pays dividends.
In this post, we’ll walk through some simple, effective ways to estimate material costs—from rough planning to detailed breakdowns. We’ll also share a sample estimate of building construction to give you a real-world look at how materials factor into the full project budget.
The goal? To help you plan with confidence, make informed decisions, and stay on budget every step of the way. Because when your estimates are right, your whole project runs smoother.
What is a construction materials estimate?
A construction materials estimate is exactly what it sounds like—it’s a detailed breakdown of all the materials you’ll need to complete a construction project, along with their projected costs. This includes everything from concrete, lumber, and steel to finishes like paint, flooring, and fixtures.
The purpose of this estimate is to help you understand how much material you'll need and how much it's likely to cost. It’s not just about plugging in numbers—it’s about planning ahead, avoiding waste, and making sure you're sourcing the right quantities at the right prices.
A good construction materials estimate is based on:
- Accurate quantity takeoffs
- Up-to-date pricing
- Clear understanding of the project scope. It’s typically created during the preconstruction phase and updated as the design evolves.
In short, this estimate is your roadmap for materials. It keeps your budget grounded in reality and gives you a clearer picture of what it’ll take to bring your project to life—without surprises along the way.
Who’s responsible for doing a materials estimate?
Who handles materials estimates may vary based upon the size and structure of the team. In general, materials estimates are typically handled by estimators, project managers, or quantity surveyors. For smaller projects it is not uncommon to see the contractor or even the owner-builder taking on the task. In larger commercial builds, a dedicated estimating team often works alongside designers and engineers to get accurate numbers early on. Collaboration is key! The more input from suppliers, subcontractors, and field teams, the better.
Can ALICE help with estimating construction material costs?
ALICE is designed to help with construction material estimates, and we’re talking way more than just crunching numbers. ALICE uses AI to simulate thousands of construction scenarios based on your project data, which includes material needs. ALICE offers a smarter and more dynamic estimate by exploring different build strategies. ALICE shows how changes in sequencing, labor, or methods impact your construction material cost.
Because ALICE connects your schedule to your cost breakdown, which means your material estimates are grounded in how the project will actually unfold. It’s helping you understand when you’ll need materials, how much, and what it’ll cost based on real-world project conditions.
This makes it easier to plan, acquire, and adapt—especially when things change, as they almost always do in construction.
Want to see how it works in action? Book a demo and see how ALICE can bring clarity to your material estimates—and your entire project plan.
How do you calculate construction materials cost?
Calculating construction materials cost starts with a quantity takeoff, or a detailed count of every material needed for the project based on blueprints or plans. This includes things like lumber, concrete, piping, drywall, and finishes. Once you know the quantities, the next step is to apply unit costs—the current price per item or per unit (like per square foot or cubic yard). Multiply those together, and you’ll get the total cost for each material.
From there, it’s important to factor in waste percentages, delivery fees, and price fluctuations. Material costs can vary based on location, availability, and market trends.
What are the different types of construction estimates?
In construction, not all estimates are created equal. Different types of construction estimates are used at different stages of a project—each with its own level of detail and purpose.
- Preliminary Estimate
Also called a conceptual estimate, this is created early on—often before design plans are finalized. It gives a rough cost range based on basic info like square footage, building type, and location. It’s useful for feasibility studies and big-picture planning.
- Detailed Estimate
Once drawings and specifications are more developed, a detailed estimate breaks down the costs for materials, labor, equipment, and subcontractor work. This is often used for bidding, budgeting, and financing.
- Quantity Estimate
This estimate focuses specifically on material quantities. It’s built from quantity takeoffs and helps with procurement planning and managing construction material cost.
- Bid Estimate
Created by contractors when submitting a proposal, this estimate includes direct and indirect costs, overhead, and profit margins. It’s the final number presented to win the project.
- Control Estimate
Used during the construction phase, a control estimate tracks actual costs against the original estimate. It helps project managers identify variances, adjust plans, and ultimately stay on budget.
Each estimate builds on the one before it, offering more detail as the project progresses. And with tools like ALICE, estimates become dynamic—tied to real schedules and project conditions, not just static spreadsheets. That means more accuracy, more visibility, and better decision-making at every step.
What are the steps to estimate construction materials for a project?
Estimating construction materials doesn’t have to be overwhelming. With the right approach, you can break it down into a few simple steps that bring clarity to your budget and build.
- Review Project Plans
Start by studying the architectural and engineering drawings. These plans are the foundation for your material list and help you understand the full scope of what needs to be built. - Perform a Quantity Takeoff
This step involves listing out all the materials required—everything from concrete and rebar to drywall and finishes. - Research Unit Costs
Next, gather current pricing for each material. You can source this from suppliers, price books, or estimating software. Prices fluctuate so it’s important to know the going price today to accurately calculate construction material cost. - Calculate Total Material Costs
Multiply your quantities by the unit cost for each item. Don’t forget to factor in taxes, shipping, and potential price fluctuations. - Add Waste and Contingency
It’s smart to include a waste percentage (typically 5–10%) and a small buffer for unexpected changes or material shortages. - Review and Update
Double-check your numbers and keep your estimate flexible. As plans evolve or material prices shift, revisit your numbers regularly.
Benefits of using construction estimating software
Real talk—manual spreadsheets and outdated tools can only take you so far. Construction estimating software is changing the game by bringing speed, accuracy, and flexibility to one of the most critical parts of any project: the estimate.
- Faster Estimates
What used to take days can now take hours—or even minutes. Estimating software automates calculations, so you can spend less time crunching numbers and more time strategizing.
- Greater Accuracy
With real-time data, built-in cost libraries, and intelligent modeling, software helps reduce human error and ensures your estimates reflect current pricing and actual quantities.
- Better Collaboration
Cloud-based platforms allow your team to share, review, and update estimates from anywhere. No more emailing outdated versions or sorting through conflicting files.
- Smarter Planning
The best tools don’t just total up costs—they let you simulate different scenarios, spot potential risks, and adjust on the fly. With ALICE, for example, your estimate stays tied to your project schedule, so you can plan smarter from day one.
- Competitive Edge
Whether you’re bidding for a job or managing one in progress, software gives you a sharper, more professional edge. It helps you submit stronger proposals and make faster, more informed decisions when it counts.
In short, construction estimating software turns your guesswork into groundwork. Want to go from “back of the napkin” to next-level precision?
It’s time to retire the old spreadsheet. Book a demo and see what smarter estimating really looks like.