Estimating Exercise 1: Assumptions, Risk & Judgment (Residential Deck Example)

In this video, we walk through Estimating Exercise 1, a conceptual estimating exercise using a simple residential deck scenario. The goal is not to produce a “perfect” number, but to practice how professional estimators think, classify uncertainty, and apply judgment when information is limited. Before answering this exercise: 👉 Review Week 1 Lectures (Parts 1&2) slides first. This exercise builds directly on the estimating concepts, terminology, and mindset introduced in Lecture 1. What this exercise covers: Classifying an estimate (ROM vs. Conceptual vs. Detailed) Identifying and documenting estimator assumptions Adjusting labor costs for payroll burden (FICA) Separating direct vs. indirect costs Applying overhead, contingency, and CM fees Testing sensitivity (what really moves the number?) Assigning cost risk ownership Using post-job feedback to improve future estimates This exercise is designed to reinforce a key lesson in construction estimating: Estimating is not just math — it’s structured judgment under uncertainty. Students: Pause the video where instructed, work through each question independently, and be prepared to justify your logic—not just your numbers.