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How to write a contractor estimate

Eight steps from the site visit to the signed approval, with a worked example and a free tool that does the arithmetic.

Quick answer: Walk the job, write the scope, separate labor from materials, say what is not included, add tax, deposit and a valid-until date, then get it signed. Changes after that go in writing.

1. Visit the job and measure

Price from what you saw and measured, not from a phone description. Write down the sizes, quantities and anything that could change the work: access, old wiring, rot, stairs. Photos help you and the customer remember what was agreed.

2. Write the scope of work

Describe what you will do, room by room or task by task, in words the customer would use. Sources on estimates all put the scope first because the price only means something against it (FreshBooks, Projul).

3. Separate labor, materials and other costs

List labor (hours or a flat price), materials (with quantities) and other costs such as permits, disposal or a trip charge as separate lines. Customers can follow it, and you can see where a job lost money afterwards.

4. Say what is not included

Inclusions and exclusions are one of the most common items in what-to-include lists (Let's Build, Housecall Pro). "Painting and drywall repair not included" costs you one line and saves an argument.

5. Add markup, discount, tax and deposit

Decide how you cover overhead and profit: a percentage line, or built into your rates. Tax rules differ by place and by what you sell, so apply tax only to the lines your area taxes. If you take a deposit, show the amount and the balance due.

6. Set dates and payment terms

Put the date, a valid-until date, when you can start and how long it should take, and how and when the balance is due. These are standard parts of an estimate in the sources linked on this page.

7. Get it signed

Add customer and contractor signature and date lines, or ask for approval in writing. Some places require a written contract for home improvement work above a set amount. In California, the licensing board says that is over $500 in combined labor and materials, and the contract must be signed by all parties (CSLB). Check your own rules.

8. Put changes in writing

If the customer adds work or you find something unexpected, agree the extra cost in writing before you do the work. Keep it simple: what changed, the price, the new total, and a date.

A worked example (made-up numbers)

Here is what steps 3 and 5 look like on a general contractor job, with a 10% markup, tax on the materials only and a 30% deposit. Every figure is worked out in cents by the same engine as the tool.

Example with made-up numbers: bathroom remodel
LineQuantityRateAmount
Demolition and haul-away1 job$1,200.00$1,200.00
Carpentry labor24 hr$55.00$1,320.00
Lumber and fasteners1 lot$380.00$380.00
Finish materials1 lot$1,450.00$1,450.00
Permits and inspections (if needed)1 ea$150.00$150.00
Subtotal$4,500.00
Overhead and profit (10%)$450.00
Sales tax (6%, on the taxable lines)$120.78
Total$5,070.78
Deposit to start (30%)$1,521.23
Balance on completion$3,549.55

Want to make one like it? Open the contractor estimate template, or pick your trade from the home page.

Sources

Supplies for printing

The estimate maker is free. If you price jobs on site, these are the usual tools and supplies:

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Related free tools

Frequently asked questions

How long should an estimate be valid?

That is your decision. Material prices and your schedule change, so most estimates carry a valid-until date. Quotewell defaults to 30 days and lets you change it or remove it.

Do I need a signature on an estimate?

Not always, but a signature or an approval message gives you a record of what the customer agreed to. Some places require a written, signed contract for larger home improvement work (see the California example below).

What if the job changes after the customer approves?

Agree the change in writing before doing the extra work, with its price. Some jurisdictions require this: California's licensing board says changes to a home improvement contract must be in writing and signed by all parties.

More estimate templates

Last updated · Written by the Rooh Sites team. Prices in the example are made up.