The hardest calculation in an estimate is quantity × rate. Year-8 maths. The mistakes people make in estimates aren't maths problems. It's making sure the quantity is right and the rate is right, and then binding that price to terms that say exactly what's in and what's out. That's the whole skill. Here's the process I run, start to finish. 1. Read the bid documents — scope of works first, then drawings. Drawings show the finished product. The scope tells you who supplies what. Free-issue items are invisible on a drawing. Raise clarifications early, and exclude what you can't price. 2. Structure your pricing. Either use the client's schedule or price in your own standard work breakdown and map it across. Break it down further than feels necessary — "Electrical works — $200,000" is not a defensible price. 3. Build your assemblies. Work out what you actually need to measure, and what falls out of it. One light fitting also means a bracket, five metres of cable and two hours of labour. 4. Measure the quantities. If the assemblies are set up properly, this gives you the full labour, plant and material summary for the whole job. 5. Enter it into your pricing structure. Add the items that never appear on a drawing — compaction testing, unit-rate items — and run your subbie procurement. Check quotes for silently excluded scope, not just the number. 6. Price the indirects. These are a function of duration, so you need a realistic programme before you can price them. 7. Add risk, corporate overheads and margin. 8. Review, then submit with a letter of offer that states your inclusions and exclusions.