How to Write a Contractor Estimate That Gets Approved
Write a contractor estimate by breaking the job into labor, materials and a markup, then giving the client a clear price to approve. A vague one-line quote invites haggling. A detailed estimate, even a short one, reads like a professional wrote it.
What belongs on a contractor estimate
A contractor estimate is a sales document and a paper trail at the same time. It has to be specific enough that both sides agree on the scope before work starts.
- A plain description of the scope of work
- Labor, priced separately from materials
- Materials and supplies, marked up to cover handling
- Permits or fees, if the job needs them
- A payment schedule, including any deposit
- How long the price is good for
- A place for the client to sign and date
Price it: labor, materials, and a markup
Start with labor: your real hourly cost, not just the wage you pay, times the hours the job should take. Add materials at cost, then apply a markup to cover ordering, waste and price changes before you buy them.
InvoiceOwl's contractor-markup guide (January 2025) put typical material markups at 30 to 50 percent. That's general industry guidance, not one country's data. Most contractors aimed for a 35 percent margin overall, per that guide. Your trade and market may run lower or higher, so treat this as a starting point, not a rule.
Worked example: a small deck repair
Here's one way the math could work on a 10-by-12-foot deck board replacement. These numbers are illustrative, built from example rates, not a price list to copy.
The client sees one number for the job, not a stack of separate quotes for lumber, screws, and your time. That's what makes an estimate easy to approve.
| Line item | Assumption | Amount |
|---|---|---|
| Labor | 6 hours at a $60/hr loaded rate | $360.00 |
| Materials | $280 in decking boards and fasteners, marked up 35% | $378.00 |
| Permit | Not required for a board-level repair | $0 |
| Subtotal | Labor plus materials | $738.00 |
| Deposit due at booking | 50% of the subtotal | $369.00 |
| Price on the estimate | Rounded for the client | $740.00 |
Give the client options instead of one price
A single price invites a single answer: yes, no, or silence. Offering a basic scope plus one upgrade option gives the client a choice to make. That choice often turns 'let me think about it' into a yes.
This works whether you call it 'good and better' or just 'standard and upgraded.' The label matters less than giving the client a second option to compare against.
Set a deposit and a payment schedule
For anything beyond a small repair, ask for a deposit before you buy materials. A common split is a third at signing, a third at the halfway point, and the rest at completion.
Put the schedule in writing on the estimate itself, not in a side conversation. It protects you if the job stalls partway through, and it sets the client's expectations from day one.
Mistakes that cost contractors the job or the money
A few habits show up again and again in estimates that go wrong. Most are easy to fix once you know to look for them.
- Quoting a lump sum with no line items to back it up
- Leaving out permit costs, then eating them later
- No deposit on a job that needs materials bought up front
- No end date on the price, so old quotes get honored at old costs
- Verbal scope changes that never make it onto paper
- No signature or approval step, so 'yes' was only ever spoken
Turn the estimate into a signed yes
However you send it, a signature matters more than the format. A client who signs, even with a typed name, is committing in a way a verbal 'sounds good' never does.
Handro builds the Good, Better and Best options into one estimate and lets the client approve and e-sign right on their phone, or ask for a change. If they go quiet, it can send a follow-up email after 2 and 5 days once you turn follow-ups on. It runs on iOS, Android and the web, and the Starter plan is free.
Written by the Handro team for owner-operators who price, quote and invoice their own work. Market figures come from the sources listed below, with the date each was published or updated. Worked examples use illustrative numbers, not a real customer's job.