unit-in-place method

estimates costs more generally than the quantity survey method. It is more of a “systems” or “component” approach to cost estimating.

In the unit-in-place method, costs are provided for installed items – that is the cost includes both the material and the labor to install the material. Costs are commonly given “per unit” for parts of a system or component with lump sum costs for fixtures and equipment.

For example, the electrical cost for a structure might be quoted per electrical receptacle. To calculate the cost for the electrical system, the number of receptacles is multiplied by the cost per receptacle. That calculation will provide the cost of the electrical job including materials and labor. This would be in contrast to the detail required in the quantity survey method which would require an itemization of the cost for receptacle boxes, receptacle plates, receptacles, switches, box covers, wire, etc. with a separate labor charge to install them.

» Real Estate Glossary