Homewyse estimates are based on the Unit Cost Method. This method is used by virtually all major construction organizations to improve the consistency and accuracy of cost estimating and bidding. This approach is recommended professional as a professional best practice by numerous professional societies and organizations. A detailed explanation of the Unit Cost Method is provided here, by the American Institute of Architects.
The method estimates cost by breaking up a project into simple work steps. Each step is "sized" using a physical aspect (Quantity) of the project that best determines the costs for that step (e.g. floor area for new floor installation, door count for new lockset installation and room perimeter distance for crown/cornice molding). Then, material, labor and equipment/other costs for each step are calculated.
Material cost for a step is determined by multiplying the Quantity by the total material cost per unit and by a coverage factor that accounts for typical material waste and overage requirements.
Labor cost is determined by multiplying the Quantity, the Labor Effort per unit and Total Labor Wage together. The Labor Effort per unit is the time required (in hours) to complete 1 unit quantity. The Total Labor Wage is the sum of a base wage paid to the labor plus overhead costs (insurance, benefits, etc).
Equipment and Other Costs (installation supplies and/or demolition and disposal fees) can be calculated by multiplying the Quantity by the unit cost - or - by a single fixed cost.