Nevada Estimating & Bidding
An accurate bid starts with correct quantities and the right profit math. This chapter covers the quantity takeoff and the difference between markup and margin.
The quantity takeoff
A quantity takeoff is the systematic measuring and counting of the materials and work quantities shown on the drawings and specifications, so each item can be priced. It is the foundation of an accurate estimate; errors in the takeoff flow straight through to the bid and can turn a profitable job into a loss.
Markup versus margin
Margin is profit measured as a share of the selling price, while markup is profit measured against cost. For a target margin, divide cost by (1 minus the margin): a job costing $80,000 at a 20% margin must be bid at $80,000 / 0.80 = $100,000. Simply adding 20% to cost gives only a 16.7% margin - the classic markup-versus-margin trap the exam sets.