Identify a common tool used for estimating project costs.

A commonly used tool for estimating project costs is the quantity takeoff. This process involves measuring and quantifying the material and labor required for a construction project. By systematically breaking down the project into its individual components—such as concrete, lumber, steel, and labor hours—a contractor can accurately assess the total costs involved.

The quantity takeoff is essential in the pre-construction phase, allowing contractors to prepare detailed and precise bids. It provides a foundational basis for creating an accurate budget and informs decision-making regarding the sufficiency of project resources. By establishing clear quantities of materials and labor, the contractor ensures that all necessary expenses are accounted for, leading to more effective financial planning and minimizing the risks of budget overruns.

This tool is widely favored in the construction industry, particularly for its ability to facilitate clear communication among project stakeholders, including architects, engineers, and subcontractors.