Take-off or takeoff with construction is a term used to refer to the process of detailing units and costs with a job estimate. Take-off is in essence the work papers supporting the final values for both numerical count and dollar amounts of the respective elements of an estimate. Take-offs are not restricted to just materials; take-off includes a separate set of documents to support labor hours and costs; equipment usage, and other types of costs (debris removal, permits, compliance, jobsite facilities, utilities and safety gear). Each industry within the construction sector of the economy uses their own process to create take-offs. At the individual contractor level, take-offs can be performed with pencil and paper or at the other end of the contractor spectrum, reach the sophisticated level of customized industry software. Every estimator must decide for themselves what they are comfortable with as the tool to create take-offs.
This article is the first of three parts. It will first introduce the reasoning behind take-offs and describe the first of four core groupings of work papers. In addition, organizational structure of how take-offs are performed for each of the respective groupings is explained; in this article, how to organize work papers for materials is explored and explained. Finally, there are some insights to assist estimators with conducting take-offs; little tricks to keep you organized and completing the task at hand. Furthermore, there is a series of articles on this site addressing estimating. It is a 14 part series covering the in-depth issues, processes, formulas and final reports with generating an estimate and the final written proposal.
Introduction to Take-Offs
Estimating has three tenets and many different principles. Tenets are universal, whereas principles are not 100% applicable to all estimates. The three tenets are 1) all estimates are unique; this makes sense, you can’t possibly compare one hospital project to another or even against something as simple as a shed; 2) all estimates must be accurate; accuracy with the estimate is the foundation of a good proposal to the client; and 3) estimates must be timely prepared. Take-offs support two of these tenets – uniqueness and accuracy. Take-offs force the estimate’s formula to account for all elements involved with the estimate. In addition, properly prepared take-offs allow the estimate to create an accurate financial cost of the project. This in turn allows the management team to prepare a proposal that ensures the organization does not lose money and can substantiate their proposal.
A good example of this relates to the construction of a hospital. What if the electrical take-off fails to properly take into consideration adequate materials and the associated labor for essential multi outlets in each recovery room? A simple miscalculation of one additional circuit could cost the contractor $400 to $600 per room multiplied by 160 rooms and you end up with additional costs not included totaling no less than $64,000. Once the contractor includes their markup, this error will exceed $85,000 on the bottom line for the contractor. Proper take-offs prevent costly errors such as this.
Contrary to popular belief, take-offs are not just for materials. Take-offs should be conducted for the other elements of a contract including labor, subcontracting, equipment utility, and other costs. These other groupings of costs are explained in more detail in Parts Two and Three of this series. There is a distinct process for each one of the four major groups of take-offs. The following section covers the take-off process associated with materials.
Take-Offs With Materials
Of all the take-offs, this one is the most complicated and cumbersome due to the wide variety of materials used in construction. Take-offs with materials are time consuming but well worth the effort when done. To further convolute the process, materials have different measurement basis. Lumber is often in linear feet, refrigeration is in tons and concrete is measured by yards. Thus, the estimator performing a materials take-off must be familiar with the various measurement systems associated with the respective material.
In addition, materials follow a spectrum of status from raw such as fill or sand to highly technical such as computer systems to run elevators. Therefore, the estimator’s experience within the profession greatly reduces risk of incorrectly quantifying the required materials. With trades, take-offs with materials are more restrictive; thus, estimators can be less experienced in quantifying the required units of measurement. However, field experience is still a must to not only understand the terms used but to envision the final outcome from actual experience. Actual field experience is the number one tool with creating an accurate take-off for materials.
When performing take-offs, there are several considerations that must be followed in order to generate an accurate take-off.
The first consideration related to take-offs with materials is to determine the complexity of the particular take-off. The more involved the task, the more experience required of the estimator to determine quantities. The respective estimator must have some form of understanding of each of the layers or respective areas of construction in order to not only comprehend terminology but the formulas customarily used to determine quantities. Most estimators have the respective field experience to understand the connection between the material needed and the outcome of the materials once installed. It is essential to success that only those individuals with backgrounds for the respective phases, functions or stages of construction quantify the materials needed. It is rare to find somebody without actual field experience that can accurately determine quantities of materials needed for an estimate.
A second consideration tied to take-offs is to break the task down into phases of construction. With grades or stakes for elevations and proper tooling, an onsite contractor can refresh an older buildings of clip angles in a day with safe technology. Whether something as simple as a remodeling or complex such as a bridge, every project must be broken down into phases of construction. By breaking down the project into phases, the estimator can then create separate lists for each phase of construction. The phase method helps to eliminate confusion, redundancy and ensures all aspects of construction are addressed.
Every form of construction uses phases (stages, milestones, jobs or sets) of construction for several purposes. The most common is to identify cost or procedural issues by organizing the information into groups thus discovering discrepancies and rendering remediation quickly. For example, with new home construction, there are nine phases. Below is a list of those nine phases and some common materials found with their respective take-offs:
- Documentation and Management – here, materials include environmental fencing, traditional fencing and some temporary items (utility poles, markers and signage);
- Site Development – fill, gravel, culverts, landscaping, trees, bushes, mulch, pavers, concrete (driveway, sidewalks) and seed;
- Footer/Foundation – lumber, gravel, rebar, mesh, concrete, block, sand, mortar mix, water, stone, bolts, brick, tar, sealants, insulation boards and sump pumps;
- Frame – lumber, steel joists, nails, plywood, roofing materials, windows, doors, insulation, siding, brick, sand, mortar mix, stone, concrete, forged steel, glass, engineered trusses, cornice, drip edge, flashing, etc.;
- Walls – insulation, plastic, sheetrock, joint compound, tape, corner beads, screws, nails, paint, lumber, trim, moldings, supports, brackets, rods, etc.;
- Trades – electrical, HVAC, plumbing including the respective fixtures and trim out materials;
- Cabinets/Tile – fine cabinetry, countertops, tile, grout, separators, appliances, escutcheon plates, trim, paint, screws, nails, glue, caulk, silicone, shims, lumber;
- Flooring – hardwood, stain, polyurethane, carpet, padding, transition strips, tile, marble, glue, leveling materials, underlayment, screws, tile, grout, shims, spacers, silicone, stone, nails, etc.;
- Exteriors – gutters, stamped concrete, brick, stone, mortar mix, sand, decking materials, screws, pavers, poles, posts, French drains, stones, metal fencing, quickset, hardware, and a mailbox.
Notice some bleed over between the phases of construction. Estimators take this into consideration when creating the quantities needed for the project.
A third consideration with take-offs is utilizing the plans to generate notes and comments related to calculating material quantities. Plans serve as the guiding force and technical worksheets to facilitate construction within certain parameters. Some plans come indicating exact models/sizes/quantities of certain components of construction. Furthermore, plans inform the estimator of unusual or certain minimum requirements tied to construction. Reviewing the plans assists the estimator with the capture of all necessary elements of construction. In some cases, plans relate directly to the phases of construction thus facilitating the process or mimicking the contractor’s process.
Finally, generate a set of work papers.
