How to estimate a construction job
Break the job into phases. Estimate site work, foundation, framing, envelope, systems, and finishes one at a time. A phase-by-phase estimate is easier to check, and it becomes your schedule of progress payments.
Price materials from current quotes. Lumber, concrete, and steel prices move every month. Get supplier quotes for the large items, add 5–10% for waste, and keep the valid-until date short (14–30 days) on material-heavy jobs.
Show the contingency as its own line. Older buildings hide rot, wiring, and out-of-level floors. A separate contingency line (often 5–10% of the job) is honest with the client, and the terms can say it is billed only if it is used.
List permits and subcontractors. Permit fees, inspections, and licensed trades such as electrical and plumbing are often where a construction estimate goes wrong. Name each one, so the client sees that it is included.
What a construction estimate should include
The example above has a place for each of these:
- Your license number and insurance, next to your business details
- The site address, if it is not the client's mailing address
- One line for each phase or trade, with quantity and unit
- Materials as a lot or by unit, with the waste allowance in the price
- Permits, inspections, and dumpster or waste removal
- A contingency line, and when you bill it
- The deposit and the progress payment schedule
- How changes to the plan are priced (change orders)
For a firm price instead of an estimate, choose Quote in the settings panel. Our quote and estimate guide explains the difference.
Estimate templates for other trades
Each template starts with a worked example for its trade. Your business details carry over between them.