A construction bid the owner can actually compare
Owners comparing construction bids look for two things: did this contractor understand the job, and where could the price grow? A good construction quote answers both. The cost breakdown shows you priced every trade; the allowances, exclusions and assumptions show exactly where the risk sits.
The sample above is laid out for a small build. In the US the editor titles the document “Estimate”. Rename the lines, use your own units and rates, and save common items for your next bid.
Example: detached two-car garage
24 × 24 ft garage (576 sq ft) on a slab. All prices are editable examples, not regional cost data.
| Line | Qty | Unit | Rate | Amount |
|---|---|---|---|---|
| Site prep, excavation, gravel base | 1 | lump sum | $4,200.00 | $4,200.00 |
| Concrete slab, 4”, with thickened edges | 576 | sq ft | $9.00 | $5,184.00 |
| Framing, sheathing, siding, labor and materials | 576 | sq ft | $28.00 | $16,128.00 |
| Roofing, architectural shingles | 7 | square | $450.00 | $3,150.00 |
| Overhead door 16×7, opener, installed | 1 | each | $2,600.00 | $2,600.00 |
| Electrical: subpanel, lights, outlets | 1 | lump sum | $3,400.00 | $3,400.00 |
| Permits, plan review, inspections | 1 | lump sum | $1,250.00 | $1,250.00 |
| Subtotal | $35,912.00 | |||
| Overhead and profit, 15% | 1 | lump sum | $5,386.80 | $5,386.80 |
| Estimate total | $41,298.80 |
Units used: lump sum for scopes that are hard to split, sq ft for slab and framing, square (100 sq ft) for roofing, each for doors and fixtures. Pick the unit your subs price in so you can check their numbers against yours.
Assumptions, allowances and exclusions
These three lists do more to prevent disputes than any amount of fine print:
- Assumptions: “Soil suitable for standard footing; no rock excavation. Utility locate by owner.”
- Allowances: “Exterior light fixtures allowance $400; difference billed or credited at cost.”
- Exclusions: “Driveway extension, landscaping restoration, interior drywall, survey.”
Put them in the notes. Add your license number to the business details, since many states require it on bids and contracts; check your state licensing board.
Payment schedule and retainage
Construction is paid in stages. A typical schedule ties each payment to a visible milestone: deposit or mobilization, foundation complete, framing and roof dried in, final inspection. Residential deposits are limited in some states; California caps home-improvement down payments at 10% or $1,000, whichever is less (Bus. & Prof. Code § 7159). On commercial work, expect the owner to hold retainage from each progress payment. The construction invoice template shows how to bill it.
Lien rights often depend on sending a preliminary notice within a set time after you start, and the rules differ by state. Check them before mobilization, not when a payment is late.
Change orders and taxes
Write in the bid that any change in scope will be priced in a written change order and signed before the work is done. On site, keep to it, even for small items.
Sales tax on construction depends on the state and on the type of contract. Some states treat the contractor as the consumer of materials; others tax materials billed to the owner. Ask your accountant and set the rates per line accordingly.
From accepted bid to first invoice
Download the PDF and send it. When the owner signs, use “Accepted? Turn it into an invoice” on the estimate; the owner and lines carry over to a new invoice with its own number, ready to edit down to the first payment. My documents tracks every bid and invoice, and when a payment lands you can create a receipt.
Sign the bid with an image from the signature generator. Related: the contractor quote template for remodels, roofing estimates, and quote vs estimate explained.