Construction glossary
Construction estimating and takeoff terms, explained with the math
Every definition is written by estimators for estimators: what the term means, how it is measured, and a worked example with real numbers. 6 terms and growing.
Estimating concepts
Assembly estimating
Assembly estimating is a method where the components of a building system are priced together as one unit instead of as separate line items. A partition assembly priced per linear foot, for example, already includes the metal studs, drywall on both sides, insulation, tape, and paint. It contrasts with unit cost estimating, where each of those items is taken off and priced individually.
Material takeoff
A material takeoff (MTO) is the process of measuring construction drawings and listing every material a project needs, with a quantity and unit for each item, so the estimate and the buyout rest on counted quantities instead of guesses. Estimators perform the takeoff before pricing, then extend each quantity against unit costs to build the bid. The term is often used interchangeably with quantity takeoff (QTO), though a material takeoff strictly refers to the buy list of materials itself.
Quantity takeoff
A quantity takeoff is the process of measuring and counting every material and work item from a set of construction drawings, then listing the results in standard units such as cubic yards, square feet, linear feet, and each. It is the first step of every cost estimate, because each priced line item starts with a measured quantity. Estimators perform the takeoff from the plans and specifications before applying any unit prices.
ROM estimate
A ROM estimate (rough order of magnitude estimate) is an early conceptual cost estimate prepared before design exists, used to test whether a project is financially feasible. It is built from historical unit rates such as dollars per square foot rather than a quantity takeoff. Commonly cited accuracy ranges run from about minus 25 percent to plus 75 percent, and AACE International class 5 guidance allows even wider spreads.
Takeoff
A takeoff in construction is the process of measuring and counting every item of work from the project drawings, producing quantities such as 14 doors, 240 lf of partition, or 1,800 sf of slab. It is the first step in building an estimate: the takeoff establishes how much work there is, and the estimator then applies unit costs to those quantities to price the job. It is also called a quantity takeoff (QTO) or material takeoff (MTO).
Unit cost
Unit cost in construction is the cost to furnish and install one measured unit of a work item, expressed in dollars per unit such as $/cy for concrete, $/sf for drywall, or $/lf for pipe. Estimators multiply a unit cost by the takeoff quantity to price each line item, then sum those extensions to build the estimate. A complete unit cost typically rolls up labor, material, and equipment for that scope, and sometimes markup depending on how the price book is set up.
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