A contractor estimate should do more than total up labour and materials. It should show you whether the job is priced safely before the quote reaches the customer.
1. Client and job details
Start with the customer name, project address, quote date, estimate number and a short job description. This makes the quote easier to trace later when the job moves into costing, invoicing or change orders.
2. Clear scope of work
Write the work being priced in plain language. A short but specific scope reduces confusion about what is included and what is not. If part of the work is provisional, label it clearly rather than burying the uncertainty inside the price.
3. Labour cost
Estimate labour using expected hours or days multiplied by your internal labour cost. If supervision, travel, setup or cleanup consume real time, include them in the cost base instead of treating them as free.
4. Materials
List major material groups and allow for delivery, waste and small consumables where they are part of your real cost. A quote can look profitable while still leaking margin through small purchases that were never included in the estimate.
5. Subcontractors and specialist work
Keep subcontractor costs separate from your own labour. This makes it easier to see where the job cost is coming from and whether a supplier or subcontractor price changes before award.
6. Other direct job costs
Plant hire, permits, skips, transport, accommodation and site-specific charges can materially change the job result. Include any cost that would disappear if the job did not exist.
7. Target margin and selling price
Do not confuse markup with margin. If total direct cost is £13,000 and your target gross margin is 35%, the margin-protected selling price is:
Selling price = Cost ÷ (1 − Margin)
£13,000 ÷ 0.65 = £20,000.
This is different from simply adding 35% markup to cost. For a deeper explanation, read our markup vs margin guide.
8. Tax, exclusions and assumptions
Keep tax separate from your core job economics and use the rate that actually applies to your business and customer. Add exclusions and assumptions so the price does not silently include work you never intended to perform.
9. Quote validity and approval
Material prices and subcontractor rates can move. Add a quote-validity period and make the approval process clear so the customer knows when the price expires and how to accept it.
Turn the checklist into a repeatable system
A reusable spreadsheet makes this process faster because the same cost categories, margin logic and quote structure are used every time. The Contractor Estimate & Quote Calculator is built for this workflow, while Contractor Profit OS connects estimating to job costing, change orders and invoices after the job starts.