What should be included in a construction cost estimate?

A comprehensive construction cost estimate should encompass a variety of components to ensure accuracy and completeness in budgeting. The correct choice includes quantities, unit costs, labor, materials, overheads, and profit margins, all of which provide a holistic view of the project's financial scope.

Quantities are essential because they determine how much of each material and labor is required for the project. Unit costs represent the price for each unit of materials and labor, which is crucial for calculating the total expenditure accurately. Labor costs cover wages, benefits, and other employee-related expenses necessary for the workforce on the construction site.

Materials costs capture the expenses associated with all the raw materials needed for the project. Overheads account for indirect costs—expenses that are not directly attributable to a specific project component but are necessary for running the business, such as administrative expenses and utilities. Profit margins are also vital, as they represent the contractor’s anticipated earnings on the project and help ensure the business's sustainability.

Incorporating all these elements allows for a more reliable estimate that better reflects the true costs of completing the construction project, thereby aiding in financial planning and resource allocation.

In contrast, other options like limiting the estimate to only labor and materials, just overheads and profit margins, or only quantities and