Build a cost estimate from quantities with matching price units

A cost estimate combines quantities with unit prices. Most avoidable mistakes occur where those units do not match: a pack price applied to square metres, or a crew rate applied as though it were an individual hourly rate.

Price the purchased quantity

Suppose an illustrative flooring requirement rounds to 12 packs and each pack is quoted at $48. The material line is $576. Multiplying $48 by the required square metres would price a different unit. Keep pack coverage, pack count and price per pack in the same row.

Define labour hours

Three people working six hours represent 18 person-hours. At an illustrative $45 per person-hour, the labour component is $810. If a supplier instead quotes a single crew-hour rate, apply it to elapsed crew time. Neither rate is a current market recommendation.

Separate additions and unknowns

Delivery, equipment, disposal and other quoted charges should have visible lines. Leave unpriced items marked as pending rather than entering zero, which could be mistaken for an included or free item. Avoid mixing currencies in one grand total.

Reconcile the final basis

State whether prices include tax, whether quantities already contain allowances, and whether the quote uses markup or a target margin. A 10% illustrative tax applied to a $1,000 tax-exclusive amount produces $100 tax and $1,100 inclusive; an inclusive price requires division to work backwards. Check the applicable rate and treatment independently before issuing a real quote.

Found a measurement or calculation issue? Send the example and your correction.