A construction estimate breaks the job into labour, materials, equipment, subcontractors, permits, overhead, and profit — usually with a 10-15% contingency. This guide covers the four pricing methods (unit price, T&M, cost-plus, fixed lump sum), how to walk a site and capture risks, line-by-line breakdowns for labour and materials, scope and exclusion language, payment schedules, and the common mistakes that cost contractors money on every job.
For most residential work, estimates are free as part of winning the job. For large commercial bids that take days to put together, charging $250-$1,000 is common — credit it back if you win the job.
Yes. For renovation work where you can't see behind walls, 10-15% contingency is industry standard. For new construction with clear plans, 5-10% is enough.
Most contractors use 14-30 days because lumber, drywall, and other material prices move. For longer projects, include a material escalation clause.
In most US states, residential construction work over a certain threshold requires a state contractor's licence. Check your state's contractor board.
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