Methodology
Our Construction Estimating Methodology
Overview
Transparent Methods, Defensible Numbers
Quick answer: Arizona Cost Estimating builds every estimate with a documented method: review the documents, measure quantities digitally, price them with current Arizona data, add indirect costs and markups transparently, classify the estimate by design maturity, document every assumption and have a second estimator review the result before delivery.
We publish our methodology because trust in an estimate comes from understanding how it was made. Owners, lenders and contractors should be able to see where each number came from and how reliable it is.
This page also explains how we write and maintain the information on our website, so readers can judge the reliability of our guides and service pages.
Our Standards
- CSI MasterFormat organization
- AACE International estimate classes
- Digital, color-coded takeoffs
- Dated Arizona pricing sources
- Documented assumptions and exclusions
- Independent second review
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Method
Step 1: Document Review and Scope Definition
Every estimate starts by reading the full document set: drawings, specifications, addenda, schedules, reports and bid instructions. We identify the scope to be priced, the estimate type requested and the information that is missing or conflicting. Questions are listed and sent to the client before measuring begins, and unresolved items become written assumptions.
Method
Step 2: Quantity Takeoff
Quantities are measured with digital takeoff software after verifying each sheet’s scale against known dimensions. Every item type is assigned a layer and color on the drawings, and quantities are organized by CSI division, trade and, when useful, by building, floor or phase. Takeoffs are cross-checked between disciplines and against schedules. See Construction Takeoff Services.
Method
Step 3: Pricing
Quantities are priced with:
- Material costs from Arizona suppliers and distributors, refreshed regularly and dated in every estimate
- Labor costs using local wage levels and productivity rates by trade, adjusted for conditions such as height, access and summer heat; Davis-Bacon rates where required
- Equipment costs using rental rates and durations appropriate to the work
- Published cost data adjusted with location factors for Arizona cities, used to check and supplement local pricing
- Benchmarks from comparable projects by type, size and quality
Method
Step 4: Indirect Costs, Markups and Risk
General conditions are calculated from the expected schedule. Taxes, permits, fees, bonds and insurance are added based on project location and contract type. Overhead and profit are shown separately so they can be adjusted. Contingency reflects design maturity and identified risks, and escalation is added when construction will start or continue well after the pricing date.
Step 5: Classification
Estimate Classes and Expected Accuracy
| Class | Design Maturity | Purpose | Typical Accuracy Range |
|---|---|---|---|
| Class 5 | 0% to 2% | Concept screening | -20% to -50% / +30% to +100% |
| Class 4 | 1% to 15% | Feasibility | -15% to -30% / +20% to +50% |
| Class 3 | 10% to 40% | Budget authorization | -10% to -20% / +10% to +30% |
| Class 2 | 30% to 75% | Control or bid | -5% to -15% / +5% to +20% |
| Class 1 | 65% to 100% | Check estimate or bid | -3% to -10% / +3% to +15% |
Step 6: Independent Review
Our Quality Review Checklist
| Review Area | What Is Checked |
|---|---|
| Scope coverage | Every specified item has a quantity and price or is listed as excluded |
| Quantities | Spot checks against drawings, schedules and benchmarks |
| Unit costs | Compared with current pricing and comparable projects |
| Math and formulas | Totals, extensions and links verified in the workbook |
| Indirect costs | General conditions match schedule; markups match instructions |
| Documentation | Assumptions, exclusions, pricing date and class written down |
Editorial Standards
How We Create and Maintain Website Content
The guides and service pages on this website are written and reviewed by our estimating team. We aim to explain construction cost topics accurately and in plain language for Arizona readers. Our editorial standards are:
- Experience-based: content reflects how our estimators actually prepare estimates.
- Accurate references: standards and regulations are described in general terms, and readers are directed to official sources or professionals for final decisions.
- No guarantees: cost information is educational and is not a substitute for a project-specific estimate.
- Regular review: pages are reviewed and updated when pricing conditions, regulations or our services change.
- Corrections: if you find an error, email ask@arizonacostestimating.com and we will review it promptly.
See also our Disclaimer and About Us pages.
FAQs
Methodology FAQs
What standards do you follow?
We organize estimates by CSI MasterFormat, classify them using AACE International’s estimate classification system, and follow consistent takeoff, pricing and review procedures.
How often is your pricing updated?
Material pricing is refreshed regularly from Arizona suppliers, and every estimate shows its pricing date.
How do you handle missing information?
We list questions before measuring, and any unresolved items become written assumptions or allowances.
Do you include contingency?
Yes, when appropriate. Contingency reflects design maturity and identified risks and is shown as a separate line.
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Location & Contact
Our Phoenix Office Serves Contractors Across Arizona
Office Address
413 W Osborn Rd, Phoenix, AZ 85013
Midtown Phoenix, Maricopa County
Phone
Estimating Desk Hours
Monday to Friday, 8:00 AM to 6:00 PM Arizona Time (MST, no daylight saving)