Quotr.ai Dictionary
Construction estimating glossary
Construction estimating has its own language. Terms like quantity takeoff, bid leveling, and assembly pricing mean specific things in preconstruction and using them precisely matters when you're building estimates that go to lenders, GCs, and subcontractors.
This glossary covers the core terminology used in construction takeoff, estimating, bidding, and AI-assisted preconstruction workflows. Each entry explains what a term means, how it fits into the estimating process, and where it shows up in Quotr.ai.
Whether you're new to estimating software or evaluating how AI tools handle your existing workflow, these definitions are written for construction professionals, not software marketers.
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AI Estimating Software
AI estimating software helps contractors calculate quantities, pricing, labor, and proposals using AI-assisted workflows.
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AI Takeoff
AI takeoff uses artificial intelligence to help identify, measure, and organize construction quantities from drawings.
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Construction Takeoff
Construction takeoff is the process of measuring materials, quantities, and scope from drawings before creating an estimate.
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Quantity Takeoff (QTO)
Quantity takeoff (QTO) measures and counts everything in a drawing set to produce the quantities an estimate is built on — before pricing.
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Bill of Quantities (BOQ)
A bill of quantities (BOQ) is an itemized list of materials, parts, and labor with measured quantities so every bidder prices the same defined scope.
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Material Takeoff (MTO)
Material takeoff (MTO) is the list of materials and quantities pulled from drawings — the what and how much of materials specifically.
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Gross Floor Area (GFA)
Gross floor area (GFA) is the total floor area of a building measured to the outside face of exterior walls across all stories.
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Elevation
An elevation is a straight-on drawing of one face of a building showing height, finishes, windows, and doors — unlike a plan viewed from above.
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Bid Leveling
Bid leveling compares multiple sub or supplier bids on an apples-to-apples basis by normalizing scope differences, exclusions, and assumptions.
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Assembly
An assembly is a pre-built group of materials, labor, and equipment that make up a single element, so you can price a component once and reuse it.
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Unit Price (Unit Cost)
Unit price, or unit cost, is the cost of a single unit of work — per square foot, per linear foot, or per each — multiplied against takeoff quantities.
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General Conditions
General conditions are project costs not tied to any one trade — supervision, site office, temporary utilities, dumpsters, permits, and cleanup.
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Allowance
An allowance is a dollar amount placed in an estimate or contract for work whose scope is not finalized yet, later reconciled once the selection is made.
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Contingency
Contingency is a reserve added to an estimate to cover unknowns, errors, and scope changes — distinct from profit.
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Markup vs Margin
Markup is the percentage added on top of cost; margin is that same money as a percentage of the final price. Confusing them quietly erodes profit.
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Scope Gap
A scope gap is work that falls between trades and gets priced by nobody, because each sub assumes someone else has it.
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RFI (Request for Information)
An RFI is a formal question from a contractor to the design team to resolve something unclear, missing, or conflicting in the drawings or specs.
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Addendum
An addendum is an official change or clarification to the bid documents issued before bids are due. Miss one and you have priced the wrong scope.
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Cost Code
A cost code is a standardized number for categorizing and tracking costs by type of work, often following CSI MasterFormat divisions.
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Plug Number
A plug number is a placeholder cost dropped into an estimate when the real figure is not available yet, flagged to be replaced before the bid goes out.
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Change Order
A change order is a formal amendment to a construction contract that adds, removes, or alters work, adjusting price and schedule after signing.
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Construction Procurement
Construction procurement is how a project sources and buys the materials, equipment, and services it needs — from selecting suppliers to purchase orders.
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Cubic Yard
A cubic yard is a unit of volume — 27 cubic feet — used in construction to measure and order bulk materials like concrete, gravel, and excavated soil.
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Ex Works (EXW)
Ex works (EXW) is a shipping term where the buyer takes on all cost and risk at the seller's premises and arranges transport and customs from there.
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FOB (Free on Board)
FOB (free on board) is a shipping term defining the point where ownership and risk of goods pass from seller to buyer — and who pays freight from there.
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Panel Schedule
A panel schedule lists every circuit in an electrical panel — breaker size, load, and what it serves — a key source for estimating electrical work.
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Rebar
Rebar (reinforcing bar) is steel bar embedded in concrete to give it tensile strength, quantified by size, length, and spacing when estimating concrete work.
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Rough-In Plumbing
Rough-in plumbing is the stage where pipes, drains, and vents are installed before walls close up and fixtures are set — a key phase to quantify in a takeoff.
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Schedule of Values
A schedule of values (SOV) breaks a contract sum into line items with values, so progress payments can be billed and tracked against completed work.
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Submittal
A submittal is a document a contractor sends the design team for approval — product data, shop drawings, or samples — confirming what will be installed matches the specs.
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Cost per Square Foot
Cost per square foot is a project's cost divided by its floor area — a quick benchmark to sanity-check a construction budget against comparable buildings.
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Formwork
Formwork is the temporary molding that holds wet concrete in shape until it cures — a significant material and labor line in any concrete estimate.
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Hard Costs vs Soft Costs
Hard costs are the physical construction — labor, materials, equipment; soft costs are everything else, like design, permits, fees, and financing.
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Parametric Estimating
Parametric estimating scales cost from key parameters like square footage using historical rates, giving fast early budgets before detailed drawings exist.
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Retainage
Retainage is money withheld from each construction progress payment, often 5–10%, released when the project is complete as security the work gets finished.
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After Repair Value (ARV)
After repair value (ARV) is a property's estimated market value once renovations are complete — the number flippers and investors use to judge a deal.
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Cost-Plus Contract
A cost-plus contract pays the contractor for actual project costs plus a fee for overhead and profit, instead of a single fixed price agreed up front.
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Liquidated Damages
Liquidated damages are a preset amount a contractor owes for each day a construction project runs past its deadline, written into the contract in advance.
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MEP (Mechanical, Electrical, Plumbing)
MEP stands for mechanical, electrical, and plumbing — the building systems for heating, power, and water that make up a major share of construction cost.
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Overhead and Profit
Overhead and profit (O&P) is the markup a contractor adds to cover business operating costs plus a margin, often shown as a combined percentage.
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Preconstruction
Preconstruction is the planning phase before building begins — estimating, takeoffs, budgeting, and scheduling that set a project up for success.
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Punch List
A punch list is the list of unfinished or defective items a contractor must fix before a construction project is complete and final payment is released.
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Quantity Surveying
Quantity surveying is measuring, costing, and managing the money side of a construction project, from early takeoffs to the final account.
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Shop Drawings
Shop drawings are detailed fabrication drawings a contractor or supplier prepares to show exactly how a component will be built and installed.
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Value Engineering
Value engineering is a structured way to deliver the same function at lower cost — cutting a project's expense without reducing quality or scope.
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Board Foot
A board foot is a unit of lumber volume equal to a 12-by-12-inch board one inch thick, used to measure and price framing and rough carpentry material.
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Guaranteed Maximum Price (GMP)
A guaranteed maximum price (GMP) caps what an owner will pay on a cost-reimbursable contract — the contractor covers any overrun above the ceiling.
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Lump Sum Contract
A lump sum contract sets one fixed price for a defined scope, agreed before construction begins — the contractor absorbs overruns and keeps any savings.
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Notice to Proceed (NTP)
A notice to proceed (NTP) is the formal authorization from an owner telling a contractor to begin work and start the contract clock on a project.
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Substantial Completion
Substantial completion is the point where a project is finished enough for the owner to use it as intended, even if minor punch-list items remain.
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As-Built Drawings
As-built drawings are updated drawings recording how a project was actually built, capturing every change from the original design during construction.
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Bid Bond
A bid bond is a surety bond guaranteeing a contractor will honor its bid and sign the contract if selected, protecting the owner during bidding.
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Certificate of Occupancy (CO)
A certificate of occupancy (CO) is an official document from a local authority confirming a building meets code and is safe to occupy for its intended use.
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Design-Bid-Build
Design-bid-build is the traditional delivery method where design is completed, contractors bid on it, then the winner builds it — three sequential phases.
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Design-Build
Design-build is a delivery method where one entity handles both design and construction under a single contract, streamlining accountability and schedule.