Preconstruction is the work that happens between design and the start of construction: reviewing the documents, measuring and pricing the scope, planning the schedule and logistics, and buying out the work. Decisions made here set the budget, the risk profile, and most of the margin on a project.
Many general contractors handle preconstruction in house, some outsource parts of it, and many do a mix. This guide describes what each phase should produce and what to ask when you bring in an outside estimating partner.
Phases of Preconstruction
| Phase | Main activities | Key deliverables |
|---|---|---|
| Design review | Constructability review, scope gap identification, coordination issues, RFIs | Review comments, RFI log |
| Quantity takeoff | Measuring all scope by CSI MasterFormat division | Takeoff by division and area, with assumptions |
| Cost estimating | Unit pricing, labor burden, equipment, subcontract plugs | Priced estimate with basis for each line |
| General conditions and fee | Time-based costs, overhead, profit, bonds, insurance | GC and fee schedule tied to project duration |
| Value engineering | Alternatives priced on the same basis as the base design | VE log with net savings |
| Bid phase | Bid packages, sub outreach, bid leveling, award recommendations | Leveled bid sheets, scope letters |
Design review
The goal is to find problems while they are cheap to fix: missing details, conflicts between disciplines, spec sections that do not match the drawings, and scope that falls between trades. Each issue becomes a documented RFI or a written assumption in the estimate. See our plan review service.
Quantity takeoff
Takeoff should be organized by CSI MasterFormat division (03 Concrete, 05 Metals, 08 Openings, 09 Finishes, 22 Plumbing, 23 HVAC, 26 Electrical, and so on) and, on larger projects, by building area or phase so it can support buyout and scheduling. Waste factors should be stated separately rather than hidden in the quantities.
Cost estimating
Direct costs are priced from supplier quotes, subcontractor bids, historical data, and cost references such as RSMeans. Self-performed labor should be priced from labor-hours times a burdened rate that includes payroll taxes, insurance, and fringes for the project location.
General conditions
General conditions are largely time-based, so they must be tied to the schedule, not set as a flat percentage. The worked example below shows why.
Bid phase
Subcontractor bids rarely cover identical scope. Leveling compares them line by line against a scope checklist and adjusts for exclusions so you are comparing like with like. Our subcontractor bid leveling guide covers the method.
Worked Example: Time-Based General Conditions
Example (illustrative 2026 monthly costs; use your own payroll and vendor pricing): a 10-month commercial project.
| Item | Monthly cost |
|---|---|
| Superintendent (full time, burdened) | $16,000 |
| Project manager (half time, burdened) | $7,000 |
| Field office trailer | $900 |
| Temporary toilets | $400 |
| Temporary power | $600 |
| Dumpsters and hauling | $1,500 |
| Monthly total | $26,400 |
Step 1: Monthly total
$16,000 + $7,000 + $900 + $400 + $600 + $1,500 = $26,400 per month
Step 2: Time-based general conditions
$26,400 x 10 months = $264,000
Step 3: Add one-time items (illustrative)
- Mobilization and demobilization: $8,000
- Final cleaning: $6,500
- Total general conditions: $264,000 + $8,000 + $6,500 = $278,500
Step 4: Sensitivity to schedule
If the schedule is 12 months instead of 10, the time-based portion becomes $26,400 x 12 = $316,800, an increase of $52,800. The one-time items do not change, so total general conditions become $316,800 + $14,500 = $331,300.
A flat-percentage approach would miss that $52,800 entirely, because the direct cost of the work may not change at all when the schedule stretches. See our general conditions guide for a full item list.
What to Look for in an Estimating Partner
1. Trade understanding
Concrete, steel, MEP, and envelope scopes each have their own units, conventions, and common gaps. Ask how the partner handles the trades that matter most on your project and who reviews them.
2. Transparent basis
Every quantity should be traceable to a sheet, and every price to a source: a quote, a database, or a stated assumption. Ask for a sample estimate so you can see how assumptions, exclusions, and waste factors are shown.
3. Location-specific pricing
Labor rates, burden, and material costs vary by market. Ask how the partner localizes pricing (for example, local labor burden and cost indexes) and how current the material pricing is.
4. Review process
Ask who checks the work before it is delivered and what the check covers (quantities, pricing, scope completeness).
5. Tools and deliverable format
Ask what takeoff software is used and what formats you will receive (PDF markups, Excel, CSI-organized reports), and whether those fit your pricing system and bid forms.
6. Scope-gap handling
Ask how unclear or conflicting items are flagged: as RFIs, as written assumptions, or as exclusions. A partner that quietly assumes its way past unclear documents is creating risk for you.
7. Turnaround and communication
Ask for realistic turnaround based on your drawing set and what happens when addenda arrive mid-estimate.
Preconstruction Checklist
- Full document set received, including specs and all addenda
- Scope boundaries and bid packages defined
- RFIs issued for unclear or conflicting items
- Takeoff organized by CSI division, with waste factors stated
- Pricing basis documented for every line (quote, database, or assumption)
- Labor priced with location-specific burden
- General conditions tied to the actual schedule duration
- VE alternatives priced on the same basis as the base design
- Subcontractor bids leveled against a scope checklist
- Inclusions, exclusions, and qualifications written into the proposal
Common Mistakes
- Starting takeoff before the set is complete. Missing a discipline or an addendum invalidates quantities.
- Flat-percentage general conditions. Ignoring schedule length and phasing.
- Comparing sub bids on price alone. Without leveling, the low number often has the most exclusions.
- Unstated assumptions. No baseline for later change discussions.
- Choosing a partner on price alone. Ask to see how they document their work first.
How F&K Estimatings Can Help
F&K Estimatings supports general contractors with CSI MasterFormat-organized takeoffs, cost estimates using location-specific labor burden and cost indexes, scope-gap review with RFIs, and bid leveling. Estimates depend on how complete the drawings are, and we note assumptions where they are not. Learn about our founder on the Waqas Malik page, see our commercial estimating service, or review pricing.