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The primary criteria used to determine the value of a construction contract is the estimated costs of labor, materials, and overhead expenses. This approach involves a detailed breakdown of all anticipated costs associated with the project. By evaluating the labor needed to complete the project, the costs of various materials required, and the overhead expenses that may include administrative costs, equipment, and utilities, a contractor can arrive at a comprehensive estimate of the total project value.

This method allows for a more accurate and realistic assessment of what it will take to complete the project successfully. It serves not only as a financial framework for the contractor but also provides clarity to clients regarding what they can expect in terms of investment. When each component of the cost is carefully considered, it helps in arriving at a fair and competitive price that reflects both the inherent risks of construction and the revenue required to maintain a profitable business.

Other factors such as the project site size, market trends, and previous contracts may influence pricing indirectly but are not as fundamental in establishing the primary value of the contract as the estimated costs. These elements can certainly impact specific situations or negotiations but do not provide the comprehensive cost assessment necessary for a construction contract's value determination.