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Project guide · Oct 31, 2026 · 7 min read

Tenant improvement estimating: a contractor's guide

Tenant improvements (TIs) are the bread and butter of many commercial GCs. They look simple, but they are full of hidden scope: existing conditions, building standards, after-hours work and the line between landlord work and tenant work.

Step 1: Define landlord work vs tenant work

Before measuring anything, read the work letter or tenant criteria. It usually spells out:

  • What the landlord delivers (shell condition, restrooms, base HVAC, sprinkler mains)
  • Building standard materials the tenant must use (ceiling tile, doors, hardware, lighting)
  • Who pays for utility upgrades, roof penetrations and after-hours engineers
  • Required contractors (some buildings require their own fire alarm or controls vendor)

Pricing work that the landlord already provides, or missing work that is yours, is the most common TI mistake.

Step 2: Demolition and existing conditions

Second-generation spaces need demolition of old walls, ceilings, flooring, cabling and MEP. Walk the space if you can, and carry allowances for hidden conditions above the ceiling.

Step 3: Framing, drywall and ceilings

  • Partitions by type and height (full height to deck vs to ceiling)
  • Demising and rated walls, with firestopping
  • Acoustic insulation where specified
  • ACT ceilings, drywall soffits and bulkheads
  • Blocking for casework, TVs and accessories

Step 4: Doors, millwork and specialties

  • Doors, frames and hardware by type from the door schedule
  • Break room and reception millwork
  • Restroom accessories, signage and fire extinguisher cabinets

Step 5: MEP

  • HVAC: relocating diffusers, new VAV boxes, controls, test and balance
  • Plumbing: break room sinks, new restrooms, connections to existing risers
  • Electrical: power and data outlets, lighting, controls, panel capacity
  • Fire protection: relocating sprinkler heads (often by the building's sub)
  • Fire alarm: new devices tied into the building system

Step 6: Finishes

Carpet, LVT, tile, paint, wall coverings and base, measured by room from the finish plan and schedule. Include floor preparation, which is often heavy in older spaces.

TI items most often missed

  • After-hours work and building engineer fees
  • Elevator protection and loading dock scheduling
  • Floor leveling under new flooring
  • Patching existing walls and ceilings outside the work area
  • Permit, plan review and inspection fees
  • Final cleaning and punch list

Get a TI estimate

Premium Estimating prepares tenant improvement and renovation estimates for GCs and subcontractors, organized by CSI division with marked-up plans. See our renovation and TI estimating service or send us your plans.

Need a number you can bid from? Send us your plans for a quote, or see our pricing.
FAQ

Common questions

Can't find your answer? Call (850) 343-4090 or email info@premiumestimatings.com.

What is a tenant improvement?

A tenant improvement (TI) is the construction work that customizes a commercial space for a tenant: walls, ceilings, finishes, MEP and fixtures.

Who pays for tenant improvements?

It depends on the lease. Often the landlord provides a TI allowance per square foot and the tenant pays costs above it.

What is a work letter?

The lease document that defines which work the landlord provides and which the tenant provides. Always read it before pricing a TI.

How long does a TI estimate take?

It depends on the size of the space and the drawing set. Your quote confirms the delivery date.

Free download: The Commercial Bid Estimating Guide 2026, a printable checklist of commonly missed scope by CSI division. Get the PDF →
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