Trade Exam · Module 2
Cost Estimating
Master the bid formula with all seven components. Learn the critical difference between markup and margin—confusion here loses you money.
Key Takeaways
- Total bid = direct costs + overhead + profit; direct costs = materials + labor + equipment + permits + subcontractors
Why This Matters on the Exam
Cost estimating shows up on 22% of the C-36 exam, right in the Planning and Estimating section. The exam will give you scenarios where you calculate a bid price, identify missing cost components, or distinguish between markup and margin. Get this wrong on the job and you're either leaving money on the table or underbidding and working for free. The exam tests both.
What You Must Know
A plumbing bid has seven moving parts: direct materials, direct labor at the loaded rate, equipment, permits, subcontractor costs, overhead, and profit. You need to know how to calculate total bid price and understand the critical difference between markup and margin—this is not optional knowledge.
I've been doing estimates for 30 years. The guys who understand these concepts get rich. The guys who confuse markup and margin go out of business.
Keep reading — unlock the full lesson
You’re reading a free preview. Get the complete lesson plus everything you need to pass the California C-36 exam:
- All 63 in-depth lessons
- 1,200+ practice questions
- AI tutor (100 messages included)
- 18+ hours of audio lessons
- Full-length practice exams
- Pass guarantee
More lessons in Planning and Estimating
- 1Blueprint Reading and Drawing Interpretation
- 2Material Takeoffs
- 3Cost EstimatingYou are here
- 4Code Awareness in Planning
- 5Plumbing Math