The Power of Dual-Quantity Estimating
In construction project estimation, the traditional method involves using a single quantity figure to determine the cost of a bid item. Multiplying this number by the unit cost yields the total cost of the item. While this strategy works, it may not provide the competitive advantage required to win bids while remaining profitable. Dual-quantity estimating, which utilizes two sets of quantity figures, offers a more strategic approach to pricing and bid management.
Understanding the Importance of Quantity Figures
When estimating and pricing a bid, contractors use a list of pay items, each with a quantity figure provided
by the customer in the bid document
(often found in the Bill of Quantity). These data are important for various reasons.
Reference Point: The client’s measurement provides a baseline for estimation.
Competitive Benchmark: The price derived from these quantity figures serves as a comparative benchmark against competitors, who typically rely on similar data.
Lump Sum Contracts: In fixed-price contracts, the quoted price based on these figures dictates the payment the contractor will receive.
What Are Estimated Quantities?
Estimated quantities are figures that are independently evaluated by the estimator or the company's quantity surveyor.
These statistics are based on precise project drawings and an in-depth understanding of the project scope.
They may agree with or differ from the client's amount figures based on an estimator's assessment.
For indirect cost components that depend on project duration, estimated quantities are derived from the
contractor’s own projected timelines rather than client assumptions.
The Advantages of Estimating with Dual Quantities
Using estimated quantity figures alongside client-provided figures offers several benefits:
Greater Confidence in Estimation: Having an independent measurement ensures that the estimator has an accurate cost projection.
Enhanced Profitability Analysis: The estimated price, derived from estimated quantities,
closely mirrors actual costs and ensures that pricing decisions safeguard profit margins.
Re-Measurement Contract Benefits: Estimated quantities give a reasonable forecast of
costs and payments for contracts that need final payment based on actual work completed.
Accurate Indirect Cost Allocation: For re-measurement contracts, using estimated quantities helps
recover full indirect costs, ensuring financial stability.
Simplify Dual-Quantity Estimating with the Right Tools
Adopting a dual-quantity estimation strategy does not have to be complicated. The correct construction
estimating software can help speed the process. Contexo stands out as a premier tool for dual-quantity estimating,
providing contractors with the information they need to select the best offer price.
By leveraging Contexo’s dual-quantity estimation capabilities, contractors gain a competitive edge,
ensuring smarter pricing decisions and increased profitability.
Try Contexo today and experience the power of dual-quantity estimating firsthand.
