Gold Seal Estimator cheat sheet

Estimating Fundamentals for Gold Seal Estimators

• Quantity takeoff formula: Quantity = Length × Width × Depth (or Height); convert all dimensions to a single unit before multiplying to avoid unit-mismatch errors.

• Waste factor rule: Order Quantity = Net Quantity × (1 + Waste %); typical waste allowances run 5–10% for standard materials and 10–15% for cut-sensitive products such as tile or sheet goods.

• Unit cost build-up: Total Unit Price = Material + Labor + Equipment + Subcontract + Overhead + Profit; each component is carried per unit of measure (LF, SF, CY, EA, LS).

• Labor hour formula: Labor Hours = Quantity ÷ Productivity Rate; Productivity Rate is expressed as units installed per labor hour and must match the crew and site conditions assumed.

• Crew cost formula: Crew Hourly Rate = Σ (Number of Workers × Individual Wage) + Burden; Burden typically covers payroll taxes, insurance, and fringe benefits as a percentage of base wage.

• Contingency decision rule: apply a design contingency during early design phases, a construction contingency during detailed estimating, and reduce contingency as design documents mature.

• Overhead and profit are applied as a markup on the direct cost subtotal, not on individual line items, so that the markup is applied uniformly across the bid.

• Rounding rule: carry quantities and unit prices at full precision through intermediate calculations and round only the final extended amounts to avoid compounding rounding error.