How to estimate a contracting job
Separate labour, materials, and allowances. Clients compare contractors line by line. Put labour, materials, and allowances on their own lines so the client sees what is fixed and what depends on their choices.
Use allowances for undecided items. When the client has not picked the tile, the vanity, or the fixtures, set a realistic allowance and say in the notes that the difference is added or credited. It stops a low allowance becoming your loss.
Price your hours honestly. Count the hours for each task, add time for set-up, travel, and clean-up, and multiply by your rate. An estimate that leaves out the small tasks is the one that loses money.
Write what is not included. Hidden damage, permit drawings, and work by others are common sources of dispute. A short list in the terms protects you and shows the client you have done this before.
What a contracting estimate should include
The example above has a place for each of these:
- Your license and insurance details
- The job address and a short scope of work
- Demolition, disposal, and site protection
- Labour by task or by the hour
- Materials, and allowances for items the client still has to choose
- Subcontracted trades such as plumbing and electrical
- What is not included, and how changes are priced
- The deposit and the payment schedule
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.