Estimate

An estimate tells the client what the work should cost and gives them something to approve. It usually lists each part of the job with a quantity and price, plus tax, the total, how long the price is good for and what’s excluded.

Contractors and clients use “estimate” and “quote” loosely. Traditionally an estimate is an approximate price that may change if conditions turn out differently, while a quote is a firm price. What matters is what your document says: state whether the price is fixed and what would change it.

Once the client signs it, an estimate often becomes part of the contract. Some states require specific information in a written home improvement contract, such as your license number, start and finish dates, the payment schedule and cancellation rights, so check your state’s rules if a signed estimate serves as your contract.

A useful estimate is built from a takeoff, current material prices, realistic labor hours, overhead and markup. Itemizing it makes it easier for the client to trust and easier for you to price changes.

BuildWell writes itemized estimates priced with local store prices and labor at the metro’s BLS median wage plus overhead and markup, and clients e-sign them on their phone.