Construction Management Practice Exam 2025 - Free Construction Management Practice Questions and Study Guide

A unit price estimate is commonly used by contractors to bid on a project because it allows them to calculate the total cost based on distinct components of work. This type of estimate breaks down the project into various tasks or units of work (such as cubic yards, square feet, or linear feet) and assigns a cost to each unit. This method provides a detailed understanding of labor, materials, and overhead costs associated with each unit, enabling contractors to present a competitive and precise bid.

In contrast, a conceptual estimate is more of a preliminary costing approach used primarily in the early stages of project planning. It relies on general information and assumptions, making it less accurate for final bids. Systems estimates provide a comprehensive view by assessing various system components but are not typically used for straightforward bidding due to their complexity. A square foot estimate gives a general idea of cost based on the total area but may lack the nuance and accuracy needed for specific trade tasks. Thus, the unit price estimate is the most suitable and precise method for bidding on construction projects.