Guide · Estimates
How to write a contractor estimate
What to put in an estimate, a worked example, and the mistakes that lose jobs.
A contractor estimate should name you and the customer, describe the job and where it is, list labor and materials as separate priced lines, state the total, say what is not included, give an expiry date, and make approval easy. Send it before you leave the driveway: the faster the estimate arrives, the more likely you are to win the job.
What to include
- Your business details. Name, phone, email, and your contractor license number if your state requires one. See where you have to show your license number.
- The customer and the job address.
- A plain description of the work. One line a customer would recognize: "Replace 40-gallon gas water heater in garage." For bigger jobs, write a fuller scope of work.
- Line items, with labor and materials separate. Show quantity, unit and price for each line so the customer can see where the number comes from.
- The total. Add tax if it applies to your work.
- What is not included. Permits, hidden damage, drywall repair, disposal: whatever you are not pricing, say so.
- How long the price is good for. Material prices move, so give a date. See how long an estimate should be valid.
- The next step. A deposit amount, if you take one, and a way to say yes. An approval button beats a reply text that says "ok".
A worked example
You tell the customer you'll swap the kitchen faucet and snake the drain. In the driveway you say: "Replace the kitchen faucet, new supply lines and angle stops, snake the kitchen drain line." That becomes:
| Line | Qty | Price | Total |
|---|---|---|---|
| Labor: replace kitchen faucet, supply lines and angle stops | 2 hr | $125.00 | $250.00 |
| Kitchen faucet, pull-down, chrome | 1 | $189.00 | $189.00 |
| Braided supply lines, pair | 1 | $22.00 | $22.00 |
| Quarter-turn angle stops | 2 | $16.00 | $32.00 |
| Snake kitchen drain line | 1 | $95.00 | $95.00 |
| Total before tax | $588.00 |
Example prices only. Use your own; the job price calculator does the math.
Add a note under it: "Price good for 14 days. Does not include repair of damaged pipes found behind the cabinet." Now the customer knows what they're getting, and you've covered the surprise.
Mistakes that cost jobs
- Sending it late. Customers often hire whoever sends a clear number first.
- Never following up. A short text two or three days later wins jobs that were just forgotten. See how to follow up on an estimate.
- One lump sum. A single number invites "why so much?" Lines answer it before it's asked.
- No exclusions. The job changes and there's nothing in writing.
- No expiry date. A price you gave in March shouldn't bind you in August.
- Making approval awkward. If the customer has to print, sign and scan, some won't.
Writing estimates faster
Most of the time goes into typing. With Settle you tap the orange button and describe the job out loud, and it writes the lines for you using your own remembered prices. Anything it had to guess is marked with an orange dot so you check it. You text the estimate from your own phone, and the customer approves from a link. It saves as you go, so a phone call won't lose it.
Questions
What is the difference between an estimate and a quote?
An estimate is an approximate price that can change if the job does. A quote is a firm price for a defined scope. See estimate vs. quote vs. bid.
Should I charge for an estimate?
Many contractors give free estimates on small jobs and charge a fee for large or time-consuming ones, sometimes credited toward the job if it's accepted. It's your call, and it depends on your trade and market.
How long should an estimate be valid?
Common choices are 14 to 30 days, shorter when material prices are moving. Whatever you choose, put the date on the estimate.
Do I need a signed estimate?
A written approval protects both sides. Requirements vary by state and by job size, so check your state's rules. Settle records the customer's typed name, date and time when they approve.
This guide is general information, not legal or tax advice.
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