How-to guide
How to Write a Contractor Estimate: 7 Steps That Win Jobs
7 min read
To write a contractor estimate: define the scope, price labor by role, list materials with your markup built in, add fees, set payment terms and a validity window, list exclusions, and get the customer's signature before work starts.
The 7 Steps
- Scope of work — exactly what you will and won't do, in plain words.
- Labor — hours by role (Journeyman, Apprentice) at each role's rate.
- Materials — every line item, priced with your markup included.
- Fees — fuel, trip, permit, disposal.
- Payment terms — deposit, progress payments, due date.
- Validity and exclusions — how long the price holds and what's not included.
- Signature — customer signs before you start. No signature, no start.
Lock It In Before You Start
A signed estimate is your protection when the customer asks for "just one more thing." Anything outside the scope becomes a change order.
Frequently asked questions
What should a contractor estimate include?
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Your business details, the customer and job address, a clear scope of work, labor, materials, any fees, the total price, payment terms, how long the price is valid, exclusions, and a place for the customer to sign.
What's the difference between an estimate and a quote?
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An estimate is an approximate price that can change. A quote is a fixed price for a defined scope. Many tradesmen use the words interchangeably, so state clearly on the document whether the price is fixed.
How long should an estimate be valid?
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14 to 30 days is standard. Material prices move, so a validity window protects you from honoring an old price.
Should I show my markup on an estimate?
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No. Show the customer the sell price for labor and materials. Your cost and markup are your business, not theirs.