A technique used to estimate the total cost of construction in which the total number of square feet to be constructed is multiplied by a cost per square foot figure to derive total cost. Builders and architects have some idea as to what a particular type of construction will cost on a square-foot basis, given the quality of construction desired, the amount of materials to be used, and the manner in which construction will take place. By having a cost per square foot available to them, the estimate of total construction cost is obtainable.

The appraisal method of estimating building costs by multiplying the number of square feet in the improvements being appraised by the cost per square foot for recently constructed similar improvements.