Scopefinch
How to write a construction estimate
A construction estimate is a priced offer for a defined scope, not a vague guess. The steps below follow the same structure as the sample bathroom remodel on this site.
1. Define the scope before the numbers
Write the job in a sentence the client will recognize, plus the site address. Then list what is included (waterproofing, cleanup, a 6-to-8-day schedule) and what is not (fixture relocation, permits, hidden water damage). Exclusions prevent a later argument better than a low total does.
2. Price labor, materials, and equipment separately
Labor is hours × rate, by task. Materials are quantity × unit cost. Add a materials markup if that is how you recover purchasing time and waste — the sample uses 15%, so $1,420 of cost becomes $1,633. Equipment and rentals get their own lines so they are not buried in labor.
3. Add tax, a deposit, and a validity date
Tax only the sections that are taxable in your jurisdiction (the sample taxes materials, not labor). A 30% deposit to schedule is a common term; on a $4,433.64 total that deposit is $1,330.09. State how long the estimate is valid.
See a sample estimate
4. Walk the math once on paper
For the sample: labor $2,320 + materials after markup $1,633 + equipment $350 = $4,303, plus $130.64 tax = $4,433.64. If you add a 10% contingency on the $4,303 subtotal, that is $430.30 more, and tax may need to be recomputed if the contingency applies to materials.
Next: the contractor estimate template and the difference between an estimate and a quote.
Questions people ask
How do you write a construction estimate?
Describe the scope, list labor, materials, and other costs, add markup and a contingency if you use one, apply tax where it belongs, show a total and deposit, list exclusions and terms, and set a validity date.
How much contingency should I add?
Many contractors add 5% to 10% for unknowns, more if the site is not fully visible. Show it as its own line or fold it into the price, but be consistent, and say whether unexpected hidden damage is excluded.
How long should an estimate stay valid?
30 days is common, because material prices move. Put the expiration date on the estimate (the sample is valid for 30 days) so a late approval can be requoted.