Set Up a Residential Estimating Workbook

A. Finished-Project Specification

Quantity: one master workbook file containing a project-information sheet, a document register, a revision log, cost-code sections for fourteen categories, quantity and pricing columns with formulas, labor columns with formulas, indirect-cost sections, an assumptions and risk register, error checks, a reconciliation sheet, summary sheets, and cell-status controls, verified with one test item and one intentional-error test set.

B. Workbook Section Schedule (Component Schedule)

Section	Quantity	Basis	Contents	Preparation / Purpose
Project-information sheet	1	Section E, Step 2	Project, client, address, estimator, reviewer, estimate number, document date, revision, issue date, validity	Identifies and dates every estimate produced from this workbook
Document register	1	Section E, Step 3	Plans, specifications, addenda, RFIs, clarifications, field reports, quotations, assumptions	Tracks every document supporting the estimate
Revision log	1	Section E, Step 4	Workbook version, date, person, reason for change, approval status	Controls workbook version history
Cost-code sections	14	Section C	Sitework, concrete, framing, roofing, envelope, insulation, drywall, finishes, MEP, exterior work, labor, equipment, subcontractors, indirect costs	Organizes every quantity and price by trade and function
Quantity and pricing columns	1 set per section	Section F, Steps 1–11	Cost code, description, location, source, quantity, unit, waste, order quantity, unit cost, material cost, tax, total	Converts measured scope into priced material
Labor columns	1 set per section	Section F, Step 11	Labor rate, crew, hours, labor cost	Converts scope into priced labor
Indirect-cost sections	7	Section F, Step 12	General conditions, overhead, escalation, contingency, profit, tax, total bid	Separates direct cost from markup and risk cost
Error-check and reconciliation sheet	1	Section G, Steps 16–17	Blank units, zero prices, duplicate codes, missing sources, negative values, broken links, overwritten formulas, major-quantity reconciliation	Catches common estimating and formula errors before issue
Summary sheets	9	Section F, Step 14	By trade, cost code, room, phase, material, labor, equipment, subcontract, allowance, and total	Presents the estimate in multiple review formats

C. Cost-Code Structure

• Default structure (use unless a company cost-code list exists): 100 Sitework, 200 Concrete, 300 Framing, 400 Roofing, 500 Envelope, 600 Insulation, 700 Drywall, 800 Finishes, 900 MEP, 1000 Exterior Work, 1100 Labor, 1200 Equipment, 1300 Subcontractors, 1400 Indirect Costs.
• Company cost-code list: where a company cost-code list exists, use it instead of the default structure and record the source and adoption date on the project-information sheet.
• Alignment requirement: confirm the selected cost-code structure aligns with the company's accounting system, project-management software, procurement process, and field-reporting forms before building columns.
• Non-substitution rule: do not substitute a personal or informal code list for an established company cost-code structure.

D. Column and Formula Schedule

Column	Type	Formula Basis
Cost code, description, location, source	Input	Entered directly; source field required for every row
Quantity, unit	Input	Net quantity as measured, with approved unit
Waste	Input	Approved waste percentage for the material and condition
Order quantity	Formula	Quantity × (1 + waste), converted to purchase unit
Unit cost	Input	Dated price from a quotation or approved price source
Material cost	Formula	Order quantity × unit cost
Labor rate, crew, hours	Input	From Chapter 17 production-rate basis where available; otherwise left blank pending that chapter
Labor cost	Formula	Hours × burdened labor rate
Direct cost	Formula	Material cost + labor cost + equipment + subcontract
Total	Formula	Direct cost + allocated general conditions, overhead, escalation, contingency, profit, and tax

E. Preparation — Purpose, Project Data, and Document Controls

1. Define the estimate purpose, project type, estimate class, intended user, pricing date, currency, market, and required output. Record these on the project-information sheet before building any other section.
2. Create the project-information sheet. Include project, client, address, estimator, reviewer, estimate number, document date, revision, issue date, and validity.
3. Create the document register. Add columns for plans, specifications, addenda, RFIs, clarifications, field reports, quotations, and assumptions, each with title, date, revision, and status.
4. Create the revision log. Add columns for workbook version, date, person, reason for change, and approval status, and enter the first row for this initial build.
5. Select the cost-code structure. Use the company cost-code list if one exists; otherwise use the default structure in Section C. Confirm alignment with accounting, project management, procurement, and field reporting before continuing.
6. Confirm the selected structure with a second person where a company structure exists. Record the confirmation on the project-information sheet.
7. Review the full list of required sections in Section B before building any single section. Confirm none will be omitted or merged.

F. Cost-Code, Column, and Formula Build Procedure

1. Create the fourteen cost-code sections listed in Section C. Give each its own labeled area of the workbook.
2. Create the columns listed in Section D for each cost-code section. Include cost code, description, location, source, quantity, unit, waste, order quantity, unit cost, material cost, labor rate, crew, hours, equipment, subcontract, tax, and total.
3. Create quotation fields. Add supplier, quote number, date, expiration, freight, lead time, minimum order, and qualifications for each priced item.
4. Create fields for assumptions, exclusions, allowances, alternates, owner-supplied items, and unresolved questions. Link each field to the affected cost-code row.
5. Define approved units and visible conversion factors. Cover length, area, volume, package coverage, stock length, and weight, and place the conversion table on its own reference sheet.
6. Build the order-quantity formula. Net quantity multiplied by one plus the waste percentage, converted into the approved purchase unit.
7. Build the material-cost formula. Order quantity multiplied by unit cost.
8. Build the labor-hours and labor-cost formulas. Hours from the production-rate basis; cost from hours multiplied by the burdened labor rate.
9. Build the direct-cost formula. Material cost plus labor cost plus equipment plus subcontract, for each row and each cost-code section total.
10. Build the general conditions, overhead, escalation, contingency, profit, and tax sections. Label the calculation basis for every percentage and distinguish markup from margin; leave rate values blank pending company policy or Chapter 18 input.
11. Build the total-bid formula. Direct cost plus general conditions, overhead, escalation, contingency, profit, and tax.
12. Label the calculation basis for every percentage field. State plainly whether each is applied to direct cost, a subtotal, or another defined base.
13. Create summary sheets. Build summaries by trade, cost code, room, phase, material, labor, equipment, subcontract, allowance, and total, each linked to the cost-code sections.
14. Create the assumptions, exclusions, clarifications, and risk register. Link every entry to the affected estimate row or section.

G. Error Checks, Protection, and Layout Controls

1. Build checks for blank units, zero prices, duplicate codes, missing sources, negative values, broken links, and overwritten formulas. Place these checks on a dedicated error-check sheet with a visible pass or fail indicator for each check.
2. Build the reconciliation sheet. Include a place to compare major quantities calculated by an independent method and to record the result of that comparison.
3. Distinguish input, formula, linked, reviewed, and locked cells without relying on color alone. Use a labeled status field or cell note in addition to any color coding.
4. Protect formulas and reference tables. Lock every verified formula cell and reference table while leaving approved input cells available for entry.
5. Create filters, frozen headings, print areas, page headers, and export settings. Confirm filters function correctly on protected sheets per the Software Cue above.

H. Test Item and Verification (Perform Once, Using One Test Item Only)

1. Enter one test item through quantity, waste, material, labor, tax, markup, and total. Use a clearly labeled placeholder cost code such as "TEST-001" so the item cannot be mistaken for real project data.
2. Verify the test item appears correctly in every summary and review sheet. Confirm the trade, cost code, room, phase, material, labor, equipment, subcontract, allowance, and total summaries each show the test item's values without discrepancy.
3. Intentionally enter each error type from the Section G checklist and confirm the workbook flags it. Test a blank unit, a zero price, a duplicate cost code, a missing source, a negative value, and a broken link one at a time, confirming the error-check sheet correctly identifies each.
4. Correct formulas, rounding, units, broken links, display, and print issues found during testing. Log each correction in the revision log with the reason for the change.
5. Remove the test item and all intentional test errors before saving the master template. Confirm the error-check sheet shows a clean result with the test data removed.

I. Closeout — Master Template and Use Guide

1. Save a controlled master template. Use a clearly labeled master filename and document the project-copy procedure that will be used to start each later chapter's estimate.
2. Prepare a one-page workbook-use guide. Cover inputs, formulas, versioning, review, and issue controls in language a new estimator could follow without additional instruction.