Gold Seal Estimator key terms

The document a contractor submits to formally offer a price for specified work, listing the scope, price, and any qualifications or alternates accepted.

A surety guarantee that a bidder will honor the submitted price and sign the contract if awarded, forfeiting a stated amount if the bidder defaults.

A surety instrument protecting the owner against a contractor's failure to complete the work as contracted, typically paying up to the bond amount.

A surety guarantee that the contractor will pay subcontractors, suppliers, and laborers, shielding the owner from mechanics' liens on the project.

A priced option in a bid that adds to or deducts from the base scope, letting the owner select or reject work items after bid opening.

A stated sum included in a bid for work whose exact cost is unknown at bid time, later adjusted to actual cost plus agreed markup.

A reserve of money or time set aside to cover identified risks and unknown conditions that may arise during construction.

An estimated increase in material, labor, or equipment costs between the bid date and the time the work is actually performed.

A fixed cost per unit of measurement, such as per cubic yard or per linear foot, used to price work whose quantity may vary.

A single fixed price covering the entire specified scope, regardless of the actual quantities or effort the contractor expends.

The systematic measurement of materials and work items from drawings and specifications to establish quantities for pricing.

A percentage added to measured quantities to account for cutting loss, breakage, over-ordering, and unused material ends.

The usable output obtained from a raw material or product, often expressed as coverage per unit, such as square feet per gallon.

Additional costs on top of base wages, including payroll taxes, insurance, benefits, and paid time off, expressed as a percentage.

The total hourly cost of a work crew, combining each member's wage and burden with equipment costs assigned to that crew.

The expected output of labor per unit of time, such as units installed per labor hour, used to convert quantities into labor hours.

One hour of work by one worker, the basic unit for estimating labor cost when multiplied by the applicable hourly rate.

Indirect business costs not tied to a specific project, such as office rent, management salaries, insurance, and administrative expenses.

Project-specific indirect costs for site supervision, temporary facilities, permits, and cleanup that are charged to a particular job.

Amounts added to direct costs to cover overhead, profit, and risk, usually expressed as a percentage of direct cost.

The portion of the contract price remaining after all costs are paid, often stated as a percentage of the selling price.

A cost that can be traced to a specific work item or project, such as materials, labor, and equipment installed in place.

A cost that supports the work but cannot be assigned to a single item, such as supervision, temporary power, or site security.

The written description of what the contract requires the contractor to furnish and install, defining boundaries of responsibility.

A formal written change to bid documents issued before bid opening, which bidders must acknowledge and incorporate into their price.

A formal question submitted to the design team to clarify ambiguous drawings or specifications, with the answer binding on bidders.

A written agreement executed after contract award that modifies scope, price, or schedule, signed by the owner and contractor.

A percentage of each progress payment withheld by the owner until final completion to protect against incomplete or defective work.

Periodic payment to the contractor based on the value of work completed and materials stored, less retainage and prior payments.

An itemized breakdown allocating the contract sum to work components, used to measure progress and support payment applications.

A legal claim against property securing payment for labor, materials, or services provided, which can cloud title until resolved.

The practice of disclosing one subcontractor's price to competitors to obtain lower offers, generally considered unethical in estimating.

A price offered by a specialty firm to perform a defined portion of the work, which the prime contractor incorporates into its bid.

Adjusting unit prices across line items so the total remains unchanged, often to improve cash flow or handle quantity uncertainty.

Assigning higher prices to early work items so the contractor receives more cash early in the project, a form of bid unbalancing.

A method of quantifying lost productivity by comparing actual output in disrupted work with output in an unaffected period of the same work.

The scheduled public event at which sealed bids are opened and prices read aloud, establishing the official record of offers.