Financials & Cost

ROM (Rough Order of Magnitude)

Also known as: Rough Order of Magnitude

A quick, early-stage cost estimate meant to give a ballpark budget, not a firm price.

A Rough Order of Magnitude (ROM) is a fast, high-level cost estimate — the number you give when an owner asks "roughly what would it cost to add EV charging?" before there are drawings to price. It's meant to size a decision, not to bill against.

ROMs carry a wide accuracy range on purpose, and communicating that range matters: an owner who hears a ROM as a firm price will be unhappy when the real number lands. Used well, ROMs let a team make go/no-go calls on scope early, before investing in detailed pricing.

Related terms

GMP (Guaranteed Maximum Price)

A contract price ceiling — the contractor guarantees the project won't exceed a set maximum, and shared savings go back to the owner.

Change Event

A potential change to the work, logged and priced early — before it becomes a formal change order.

Value Engineering

Finding lower-cost ways to deliver the same function — substituting systems or details to cut cost without losing value.

From term to skill

Use it on a real project.

Definitions get you fluent; reps get you hired. Run a sandboxed construction project and put ROM into practice alongside every other workflow that moves a job.

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