Which of the following is NOT a major area that a construction estimate is separated into?

In construction estimating, the major areas typically included in an estimate encompass direct job expenses, labor costs, and material costs. These components are fundamental because they directly impact the overall cost of a project.

Direct job expenses include costs that are necessary to complete the job but don’t fall under materials or labor, such as permits, equipment rentals, and subcontractor fees. Labor costs refer specifically to expenses related to the workforce, including wages, benefits, and overtime, which are crucial in determining the total project cost. Materials encompass the physical goods required for construction, such as concrete, steel, lumber, and fixtures, which are also critical as they represent a significant portion of the overall expenses involved in construction.

Profit margin, while essential for the financial viability of a construction company, is not considered a direct component of the project estimation itself. Instead, it is typically accounted for after estimating the total costs associated with the job. A profit margin is applied to ensure that a company not only covers expenses but also generates adequate income for its operations and future growth. Therefore, it is not classified as a major area in the breakdown of a construction estimate.