What a contractor estimate needs to win the job
Homeowners usually compare two or three bids. The one that is easiest to understand often wins, even when it is not the cheapest. A clear contractor estimate shows the scope room by room, separates labor from materials, names the allowances, and tells the customer exactly when they pay and how long the price holds.
In the US the editor titles the document “Estimate”. The sample above shows a small remodel; replace the lines with your own and save the ones you use often.
- Your license number and insurance details. Many states require the license number on bids and contracts. Check your state licensing board.
- Scope of work in plain language, plus what is excluded (for example, “No work on existing electrical panel”).
- Line items with quantity and unit: sq ft of tile, linear ft of trim, each for fixtures, lump sum for demolition.
- Allowances for items the customer will choose later.
- Permits, dumpsters and disposal as separate lines.
- Payment schedule tied to milestones.
- Valid-until date and a place for the customer to sign.
Example: bathroom remodel estimate
All prices are editable examples.
| Line | Qty | Unit | Rate | Amount |
|---|---|---|---|---|
| Demolition and haul-away | 1 | lump sum | $1,800.00 | $1,800.00 |
| Plumbing rough-in, licensed sub | 1 | lump sum | $3,200.00 | $3,200.00 |
| Tile installation, floor and shower | 120 | sq ft | $22.00 | $2,640.00 |
| Tile material allowance | 120 | sq ft | $8.00 | $960.00 |
| Vanity, toilet, fixtures allowance | 1 | lump sum | $2,600.00 | $2,600.00 |
| Electrical: exhaust fan, GFCI outlets | 1 | lump sum | $1,150.00 | $1,150.00 |
| Glass shower door, installed | 1 | each | $1,600.00 | $1,600.00 |
| Drywall repair, paint, trim | 1 | lump sum | $2,450.00 | $2,450.00 |
| Building permit | 1 | each | $600.00 | $600.00 |
| Project management and final cleanup | 1 | lump sum | $1,400.00 | $1,400.00 |
| Estimate total | $18,400.00 |
Deposit and payment schedule
A payment schedule protects both sides: the customer never pays far ahead of the work, and you are never far behind. Some states limit the deposit on home-improvement contracts. In California it is capped at 10% of the contract price or $1,000, whichever is less (Bus. & Prof. Code § 7159), so on this job the maximum deposit is $1,000. Check your own state’s rule.
| Payment | When | Amount |
|---|---|---|
| Deposit | At signing | $1,000.00 |
| Progress 1 | Demolition done, rough-in inspection passed | $7,000.00 |
| Progress 2 | Tile and fixtures installed | $7,000.00 |
| Final | Punch list complete | $3,400.00 |
| Total | $18,400.00 |
Write the schedule into the notes so it prints with the estimate.
Change orders and sales tax
Hidden rot behind the tub is a fact of remodeling. Say in the notes how you handle it: work stops, you write a change order with the price, and the customer signs before you continue. That one sentence prevents most end-of-job disputes.
Sales tax treatment of labor and materials varies by state. If your state taxes materials, set the rate on those lines; the editor totals each rate separately.
From signed estimate to invoice
Download the estimate, share it, and mark it sent. When the customer signs, choose “Accepted? Turn it into an invoice” on the estimate. The client and lines are copied into a new invoice; edit it down to the deposit for the first bill. Later invoices can be made with Duplicate. When the final payment arrives, mark it paid and create a receipt.
Want the customer’s signature line to carry yours too? Make one with the signature generator. Billing the job? See the contractor invoice template. Specialized estimates: roofing, HVAC and construction. General quotes for any business live on the quote template page.