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Estimate
What is an Estimate?
An estimate in construction is a calculated projection of the costs, time, and resources required to complete a specific project or scope of work. It includes direct costs like labor, materials, and equipment, as well as indirect costs such as overhead, insurance, and profit margins.
Construction estimates serve as the foundation for project planning, budgeting, and decision-making, helping both contractors and clients understand the financial commitment required. Estimates can range from rough preliminary assessments to detailed breakdowns that are often refined as project details become clearer or circumstances change.
Accurate estimating is essential for subcontractors to win profitable work while maintaining healthy margins. Many successful subcontractors develop standardized estimating processes that incorporate historical cost data, current market rates, and lessons learned from previous projects to improve bid accuracy and build credibility with general contractors.
Siteline helps you be strategic with how you bid, letting you easily analyze historic payment and project trends, including seeing your fastest- and slowest-paying clients. If you're curious how Sitleine can help you make calculated bids that will yield the fastest payments and improve overall cash flow, request a demo here.
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Other construction terms
What is Single-Entry Accounting?
Single-entry accounting is a simplified bookkeeping method where each financial transaction is recorded only once, typically as either income or an expense. Unlike double-entry accounting, which requires balancing debits and credits across multiple accounts (asset, liability, equity, etc.), single-entry accounting functions more like a detailed checkbook register.
It’s a simple system that works well for smaller contractors with straightforward billing. But as your projects, clients, and payment terms get more complex, it can become limiting, often requiring extra spreadsheets and manual workarounds.
That’s where Siteline comes in. Built specifically for commercial subcontractors, it automates progress billing, manages custom GC requirements, and provides accurate, real-time cash tracking and reporting, helping you keep projects moving and payments on schedule. Learn more about Siteline.
What is a Performance Obligation?
A Performance Obligation in the construction industry refers to a commitment or liability that a contracting party has to perform and fulfill, according to the terms stipulated in a contract. It includes the delivery of services or completed work components. For example, if a construction company has a contract to build a commercial complex, their performance obligation could involve the construction of the entire complex or individual stages of the contract, such as erecting the structure, installing heating systems, laying down the flooring, among others. Each of these components may have their own deadlines and quality standards. Thus, not fulfilling these obligations could result in penalties or legal consequences. Therefore, recognizing and managing performance obligations is crucial in construction project management.
What is WH-347?
WH-347 is a form utilized in the construction industry by contractors and subcontractors engaged in federal or federally-assisted construction contracts. This certified payroll form, issued by the U.S. Department of Labor, requires contractors to report detailed wage information for employees including hours worked, job classification, rates of pay, and deductions. The purpose of the WH-347 form is to ensure contractors are compliant with the Fair Labor Standards Act regulations. Witnessed and attested to by an assigned company official, this form plays a crucial role in the transparent and fair operation of the construction industry, ensuring that workers are compensated according to stipulated guidelines and in line with labor law regulations.
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