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Estimating fundamentals

Analytical estimating.

Analytical estimating is the most detailed approach. Every cost component is calculated from first principles rather than applied as a composite rate. It is the most time-consuming method but also the most accurate.

Who this guide is for

Main contractors pricing complex or non-standard work, quantity surveyors producing detailed cost plans, and any estimator who needs to justify every element of a rate to a client or auditor.

How analytical estimating works

Each work item is separated into labour (gang composition, hourly rates, productivity), materials (quantities, cost per unit, waste allowance), and plant (hire rates, fuel, operator). Overheads and profit are added separately. The total cost is the sum of all analysed components.

Miniature example

150 mm trench fill concrete (per m³):
Labour: 1 ganger £22/hr, 2 labourers £20/hr each, output 0.8 m³/hr = £77.50/m³
Materials: C25 concrete £115 + 5% waste = £120.75/m³
Plant: mixer £15/hr, poker £8/hr — 0.25 hrs = £5.75/m³
Analytical rate: £204.00 per m³

Common mistakes

• Using assumed productivity figures that do not match site conditions
• Overshadowing — spending analytical time on minor items while approximate rates would suffice
• Forgetting to update component costs when supplier prices change during the tender period