Home/Guides/Estimating Basics

Understanding Construction Estimates

Most board members have never read a construction estimate before a hurricane. This guide explains what you're looking at — CSI divisions, line items, overhead and profit — so you can ask better questions and catch problems before signing.

~20 min readEstimates

Why this matters

Florida boards regularly approve repair contracts where the estimate is missing critical scope, uses inflated labor rates, or applies excessive overhead and profit. Understanding estimates is your single most effective tool for protecting your community's money.

The Basics: What Is a Construction Estimate?

A construction estimate is a line-by-line breakdown of all the costs required to complete a repair or replacement project. It is not the same as a contract or a bill of quantities — it's a cost projection that forms the basis for the contract price.

A complete estimate has three components: materials (cost of everything that gets installed), labor (cost of the work to install it), and equipment (tools or machinery required). On top of those, contractors add overhead and profit.

CSI Divisions — The Standard Format

The Construction Specifications Institute (CSI) MasterFormat is the industry standard for organizing construction documents. Most professional estimates in Florida use this format. Here are the divisions most relevant to hurricane repair:

01 — General Requirements

Project management, supervision, permits, insurance, temp facilities. Usually 5–10% of total cost.

02 — Existing Conditions

Demolition, asbestos abatement, existing damage assessment. Often under-quoted.

03 — Concrete

Foundation repairs, structural concrete, parking garage repairs.

04 — Masonry

Stucco, concrete block, brick. Common damage in hurricanes.

05 — Metals

Structural steel, metal railings, bar joists. Check for corrosion damage.

06 — Wood & Plastics

Wood framing, trusses, sheathing. Water damage assessment here.

07 — Thermal & Moisture Protection

Roofing, waterproofing, insulation. THE most hurricane-exposed division.

08 — Openings

Windows, doors, storefronts, impact glass. Critical for hurricane damage.

09 — Finishes

Drywall, painting, flooring, ceiling tiles. Water damage often surfaces here.

10 — Specialties

Signage, mailboxes, toilet partitions, fire extinguishers.

21 — Fire Suppression

Sprinkler systems. Often damaged in roof breaches.

22 — Plumbing

Fixtures, water heaters, pipe repairs.

23 — HVAC

AC units, air handlers, ductwork. Salt water exposure is a major issue post-hurricane.

26 — Electrical

Panel replacements, wiring, lighting. Requires licensed electrician.

31 — Earthwork

Site grading, drainage repair. Often needed after flooding.

If your contractor's estimate doesn't reference CSI divisions, ask why. An estimate without CSI formatting is harder to compare against benchmarks.

Overhead and Profit

Overhead covers the contractor's indirect costs: office staff, vehicles, insurance, bonds, estimating, project management. Profit is what the contractor earns for taking on the project. Together, they're often called "O&P" or "markup."

Typical O&P Ranges

General contractor overhead8–12%
General contractor profit5–10%
Subcontractor overhead + profit15–25% each
Total O&P (all-in)25–40% of direct costs

Red Flag

A contractor charging 40–50% combined O&P is at the high end. Anything above that should be questioned and benchmarked. On a $500,000 project, a 10% difference in markup is $50,000.

Labor Costs — What to Benchmark

Labor costs in Florida construction estimates should be benchmarked against the RSMeans (now Gordian) 2026 data or the Florida Building Code prevailing wage rates. Here are typical hourly ranges for Florida hurricane repair labor (including fringe benefits):

TradeHourly RangeNotes
General laborer$28–$38/hrUnskilled辅助
Carpenter$38–$55/hrFraming, form work
Roofer$42–$62/hrPitched and flat roof
Electrician$52–$78/hrLicensed journeyman
Plumber$50–$74/hrLicensed journeyman
HVAC technician$48–$72/hrLicensed
Painter$35–$52/hrInterior/exterior
Drywall finisher$38–$55/hrTape, mud, sand
Concrete finisher$40–$58/hrSlabs, form work
Project manager$65–$95/hrSupervision

Ranges include base wage + typical fringe benefits (health insurance, etc.). Rates vary by metro area — Miami-Dade and Broward run higher than rural counties. After major hurricanes, labor rates in the affected region spike 20–40% due to demand.

Common Estimate Problems to Catch

Missing scope

Items that are obviously needed but not included — e.g., gutters, window flashings, permit fees, dumpsters, temp utilities.

Duplicated scope

The same item appears in multiple line items, inflating the total.

Under-quantified materials

Estimate says 10 squares of roofing when the actual roof area requires 15.

Wrong unit prices

Unit costs that are above market rate (e.g., $12/sf for drywall when $6–8 is typical).

Concealed conditions not addressed

Asbestos, mold, rotted wood behind walls — none of these are visible but all cost money. A good estimate includes a contingency for concealed conditions.

No contingency

Repairs after a hurricane should include a contingency (typically 10–15%) for unforeseen conditions. No contingency = surprise assessments.

Florida Building Code upgrades excluded

Post-Hurricane Ian, many repairs must meet current FBC standards. If the estimate assumes pre-code work, the final cost will exceed the estimate.

Get a professional estimate analysis

EstimateVerify reviews contractor estimates line-by-line against RSMeans 2026 pricing and Florida Building Code. Catch problems before you sign. Starting at $49.

Analyze My Estimate →
Sponsored Tool

Have an estimate to review?

Upload any contractor estimate and get a line-by-line analysis against RSMeans 2026 market data, Florida Building Code compliance, and scope completeness — starting at $49.