Remodeling estimating software that wins more jobs

A remodel's price comes together in six stages, in the order the work happens:

1. Protection and demolition: dust containment, floor protection, tear-out, the dumpster and haul-away.
2. Framing and rough-in: wall changes, plumbing supply and drain, new circuits and ductwork.
3. Walls and ceilings: new or patched drywall, taped, finished and ready for paint.
4. Surfaces: tile, flooring and underlayment.
5. Carpentry: doors, casing, baseboard, cabinets and built-ins.
6. Fixtures and finish: plumbing and electrical trim, paint, cleanup and the punch list.

Line items: price each one from your hours

These are common lines on a remodeling estimate and what each is measured in:

• By the square foot: drywall, tile, flooring and paint.
• By the linear foot: walls, drain lines and baseboard.
• By the each: doors, circuits, setup and cleanup.

The hours and prices are yours to set, and every line's hours are editable to match your crew.

Hours add up across the trades

Example: Take a 12-by-15-foot family room being rebuilt: the old drywall comes off, one 12-foot wall is reframed for a wider opening, and the room gets new drywall, paint, plank flooring, a door and baseboard. The hours below are example figures; say your own records show your crew needs:

Work	Your hours
Dust containment and floor protection	3
Remove 430 sq ft of drywall	8
Reframe 12 linear ft of wall	8
Hang and finish 430 sq ft of drywall	22
Prime and paint walls and ceiling	11
Install 180 sq ft of plank flooring	8
Hang one door, 54 linear ft of baseboard	6
Total	66

That's before the electrician moves a single receptacle or the dumpster is hauled away.

Demolition and drywall finishing are the lines remodelers most often underprice, because neither shows in the finished room.

Each trade at its own labor rate

A remodel mixes carpenters, plumbers, electricians, tile setters and painters, and each earns a different wage in each metro. BuildWell builds each line's labor rate in three steps:

1. Wage: the median wage for that line's trade in your metro.
2. Overhead: your labor overhead, which starts at 100%, doubling the wage.
3. Markup: your labor markup, which starts at 20%.

What that labor comes to

Example: Say your crew costs you $30 an hour on average. Use your real number. The 66 hours above come to:

• Wages: 66 × $30 = $1,980
• With 100% overhead: $3,960
• With 20% markup: $4,752 for that labor

Plumbing, electrical and tile lines work the same way at their own wages. If you sub a trade out, use your sub's price plus your markup.

Read every sub quote against your scope

Get written quotes, and read each one against your scope:

• what's included and what's excluded
• who supplies the fixtures
• who patches the drywall after rough-in
• who pulls the permit

Gaps between trades are where a remodeler's money disappears. Add each quote as its own line, so you can see the margin on every trade.

Materials, selections and allowances

• Materials you supply: BuildWell prices lumber, drywall, tile, flooring and paint at stores near the job, at the grade you chose. For special-order items, enter your cost from the supplier's quote. Prices you type in are saved for the next estimate.
• Items the client buys: answer that the customer supplies them. They stay on the estimate, so the client sees your installation labor and what it covers, but they aren't charged.
• Selections not made yet: price the line at a stated allowance and put the rule in your terms. Selections above it are billed as a change, and selections below it are credited.

BuildWell starts material markup at 20%, and you can change it on any estimate.

Price what you can't see

Rot, undersized framing, old wiring and plumbing that was never to code all turn up once walls open. You can't price what you haven't found, so price the method:

• say what the estimate includes and what it assumes
• say how hidden work will be priced, at your rates plus materials
• revise the estimate when you find something, and get it signed before you fix it

Codes, permits and older homes

• Permits: most jurisdictions require a permit when a remodel changes plumbing, electrical or walls. When BuildWell asks whether you're pulling one, answer yes, and your permit fee from Pricing settings is added to the estimate.
• Bringing work up to code: opening a wall can mean the wiring or plumbing in it has to meet the code your area has adopted. Ask your building department before you price, not after.
• Homes built before 1978: the EPA's Renovation, Repair and Painting rule requires lead-safe work practices, by a certified renovator, when you disturb painted surfaces. Tell BuildWell the house is pre-1978, and it adds the lead-safe setup and cleanup line.

Set the deposit and the payment schedule

A remodel ties up your money in materials and sub payments long before it's finished. A common structure:

• Deposit: at signing, large enough to cover special orders.
• Progress payments: after demolition and rough-in pass inspection, and after drywall and flooring are in.
• Balance: at completion and walkthrough.

Some states limit the deposit a home improvement contractor can collect before work starts. Check yours before you set the percentage.

Pay depends on what you do versus sub out

What remodelers earn comes down to what they do themselves and what they sub. A remodeler who frames, hangs drywall and sets tile earns that labor; one who subs it out earns the markup.

Wages for each trade also vary widely by metro. Your rates, markups and change orders decide your income more than any wage table.

Self-employment tax is 15.3% of net earnings

As a sole proprietor or single-member LLC, you pay self-employment tax on your net earnings: 15.3% in total.

• Social Security, 12.4%: applies to net earnings up to the Social Security wage base, which is $184,500 for 2026.
• Medicare, 2.9%: applies to all of it.
• Deduction: you can deduct half of the self-employment tax on your income tax return.

That's in addition to federal and state income tax. Hold back a share of every payment, including deposits.

Pay quarterly estimated taxes

Nobody withholds tax from your jobs, so pay estimated tax during the year on Form 1040-ES. The four payments are usually due in mid-April, mid-June, mid-September and mid-January.

A big remodel's deposit and progress payments can make one quarter much larger than the rest, so estimate from what actually came in.

Track these deductions

Remodeling businesses commonly deduct:

• tools and equipment
• the business share of your truck or van
• fuel
• insurance, license and certification fees
• dumpster and disposal costs
• phone and software

Keep receipts and log mileage as you go.

Send a 1099-NEC to subcontractors you pay

If you pay an unincorporated subcontractor for services, you'll generally need to send them a Form 1099-NEC. For payments made in 2026 and later, that applies once you've paid them $2,000 or more in a year, up from $600 before 2026.

Collect a Form W-9 and a certificate of insurance from every sub before the first payment.

Sales tax on materials depends on your state

States treat remodeling contractors differently. Some have you pay sales tax when you buy materials; others have you charge it to the client on materials, or on the whole job.

Check your state's revenue department. In BuildWell, sales tax applies to materials only, not labor, at the rate you set.

This is general information, not tax or legal advice. A tax professional who works with contractors can tell you what applies in your state and to your business.