# Construction Estimation Explained

> Construction estimation turns drawings into quantities, rates and a pre-tender budget. See a hospital example and how SuperWise holds it in the BOQ.

Canonical: https://superwise.site/glossary/estimation/
Last updated: 2026-11-01

The costing step that turns drawings into quantities of material, labour and machinery, priced to forecast a project's budget.

## What is Estimation?

Estimation is the process of working out, from drawings and specifications, the quantities of material, labour hours, machinery time and overheads a project needs, then pricing them at current market rates to forecast the project budget.

## Practical example

Before bidding on a hospital project, an estimator reviews the structural drawings. The estimator calculates the square footage of [formwork](https://superwise.site/glossary/formwork/), the tonnage of [rebar](https://superwise.site/glossary/reinforcement-rebar/) and the volume of concrete, then applies local labour rates and material costs. The result is a pre-[tender](https://superwise.site/glossary/tender-tendering/) estimate that shows what price the contractor can bid and still make a profit.

## In SuperWise

In SuperWise the Project [BOQ](https://superwise.site/glossary/bill-of-quantities/) holds the quantities and rates of a project. In the BOQ playground a team enters the quantity of each item and either types a rate or builds it up in a rate analysis of materials, labour and machinery, with a wastage percentage. Once committed, the BOQ items become available for [work orders](https://superwise.site/glossary/work-order/), [RFP](https://superwise.site/glossary/request-for-proposal/) scope and [RA bills](https://superwise.site/glossary/running-account-bill/).

[Budget tracking](https://superwise.site/features/estimation-vs-earned-value/)

## Related terms

- [Tender (Tendering Process)](https://superwise.site/glossary/tender-tendering/)
- [Overrun (Cost & Time)](https://superwise.site/glossary/cost-overrun/)
- [Bill of Quantities (BOQ)](https://superwise.site/glossary/bill-of-quantities/)
- [Abstract of Estimate](https://superwise.site/glossary/abstract-of-estimate/)

## Related
- [Tender (Tendering Process)](https://superwise.site/glossary/tender-tendering/)
- [Overrun (Cost & Time)](https://superwise.site/glossary/cost-overrun/)
- [Bill of Quantities (BOQ)](https://superwise.site/glossary/bill-of-quantities/)
- [Abstract of Estimate](https://superwise.site/glossary/abstract-of-estimate/)
- [Budget tracking](https://superwise.site/features/estimation-vs-earned-value/)