Construction Estimate Template: What to Include and How to Write One

A good construction estimate tells the client what they get for the price, and records what you agreed to. Below is what goes in it, a layout you can copy, and how to write one in about 20 minutes.

What a contractor estimate must include

1. Your details: business name, license number if your state requires one, phone, email.
2. Client and job site: name, address, date of the estimate, estimate number.
3. Scope of work: what you will do, in plain words, room by room or phase by phase.
4. Line items: labor, materials, equipment, subcontractors, permits.
5. Markup and overhead: either as its own line or built into each item. See markup vs margin so you pick the right percentage.
6. Total price and any tax.
7. Payment terms: deposit, progress payments, final payment.
8. Exclusions and assumptions: what is not included, such as permit fees, hidden damage, or paint color changes.
9. Validity: the date the price expires.
10. Approval: a line for the client’s signature and date.

Sample line-item layout

Item	Qty	Unit	Unit price	Total
Demolition and haul-off	1	job	$650	$650
Framing lumber	1	lot	$480	$480
Drywall install and finish	320	sq ft	$3.20	$1,024
Interior paint, 2 coats	320	sq ft	$1.60	$512
Labor, carpentry	24	hr	$65	$1,560
Subtotal				$4,226
Overhead and profit (25%)				$1,057
Total				$5,283

These numbers are examples. Use your own prices.

How to write a construction estimate, step by step

1. Measure on site. Take dimensions and photos. A square footage calculator helps with odd room shapes.
2. Write the scope first. Pricing a vague scope is how disputes start.
3. Price materials at today’s cost, plus waste (5-10% is common for flooring and drywall).
4. Price labor by hours or by unit, whichever you can predict better.
5. Add overhead and profit.
6. List exclusions and the validity date.
7. Send it as a PDF the same day. Fast, clean estimates win jobs.

When the client approves, bill with a contractor invoice, and handle scope changes with a change order.

Estimate vs bid vs quote

People use these words loosely. An estimate is an approximation, a bid is a competitive offer for a defined scope, and a quote is a firm price. Tell the client which one you’re giving.