How do you write a remodeling estimate?

A remodeling estimate should explain each stage of the work and its price. Show which prices are fixed and which depend on products the customer still needs to choose.

For this fictional example, a customer asks for new kitchen cabinets, countertops, flooring and finishes. They want to keep the sink, appliances and cabinets in their existing locations.

The estimate groups the work by phase. The example work and prices are made up. All prices in this example are fixed for the listed work except the cabinet and countertop allowances. Use your own site assessment, supplier prices and subcontractor quotes when preparing an estimate.

Group remodeling work by phase

A customer can follow the project more easily when related work appears together. Describe the tasks included in each phase rather than listing only the names of the trades involved.

Removal — $2,500

• Remove the existing kitchen cabinets, floor covering and backsplash.
• Haul away the removed materials.

Preparation — $2,000

• Remove loose plaster from the kitchen wall surfaces exposed by cabinet removal.
• Patch those surfaces ready for the new cabinets, backsplash and paint.

Plumbing and electrical — $5,500

• Disconnect the kitchen sink and dishwasher, then connect their replacements in the existing locations.
• Replace the kitchen ceiling light fixtures at their existing positions. Moving outlets or adding circuits is not included.

Cabinet supply allowance — $7,000

• Money set aside for cabinets, hardware and delivery while the selection and final price are still to be confirmed.
• Confirm the selected cabinets and final supply price in writing before ordering.

Cabinet installation — $2,000

• Install replacement base and wall cabinets along the same kitchen walls as the existing cabinets.
• Fit the doors, drawers and hardware.

Countertop supply and installation allowance — $3,000

• Covers the countertop and installation.
• Record the selected product, dimensions and cutouts before confirming the final price.

Flooring, backsplash and painting — $4,000

• Supply and install new flooring throughout the kitchen and a backsplash between the countertops and wall cabinets.
• Prepare and paint the remaining kitchen wall surfaces and ceiling.

Final fittings, testing and cleaning — $1,000

• Fit baseboards around the kitchen perimeter.
• Check the new sink connections for leaks and test the dishwasher and replacement lights.
• Remove remaining installation debris and clean the work area.

Total before any applicable tax: $27,000.

Before using these descriptions in a quote, add the cabinet quantities, product specifications, flooring and backsplash areas, and paint products and coats. State who supplies the sink, dishwasher and light fixtures. These fields must be completed for the job you are pricing.

A drawing or list of selected products can add detail to the written descriptions. If you refer to one, attach it and identify its number and revision date. State which work is subcontracted and what you remain responsible for coordinating.

Explain how allowances affect the total

An allowance is money included in the estimate for something the customer has not chosen yet or whose price is not confirmed. For example, a kitchen estimate can include a $7,000 cabinet supply allowance and a separate $2,000 installation price.

Explain what the allowance covers and how the price can change. For example:

The $7,000 cabinet allowance covers cabinet supply, hardware and delivery. We will send you the cabinet details and supplier's price, showing any increase or decrease in the estimate. We will order only after you approve the change in writing. Installation is priced separately.

If the customer approves a supply price of $7,600 in writing and everything else stays the same, the project total increases by $600. If it becomes $6,500, the total decreases by $500. If you add a fee or percentage to an allowance adjustment, explain it before the customer accepts.

Write the selection deadline in the estimate. The customer needs to know when a cabinet or countertop decision is required for the proposed schedule.

State what is outside the estimate

A remodeling estimate should identify work the customer might reasonably expect but you have not included. For a kitchen renovation, that could mean:

• Appliance supply: the customer buys the appliances.
• Structural alterations and framing repairs.
• Repairs to concealed damage discovered during removal.
• Work in other rooms.
• Permit fees, if they are not included in the listed price.

Choose exclusions that match the job. Do not copy a list that contradicts the work you are promising to complete.

You can also list rates for specific extra work, such as wall repairs in an adjoining room. Keep those rates outside the estimate total. Explain that extra work requires written approval.

Record changes and get written approval before doing additional work

When the customer requests an addition or you discover work outside the scope, explain what changes. Put the description, price and any effect on timing in a written change order. Get the customer’s written approval before doing the additional work.

For example:

The estimate includes removing the kitchen cabinets and repairing the wall surface. Replacing damaged framing discovered behind the cabinets is additional work. We will send a written description, price and any schedule change, and obtain your written approval before starting that repair.

Keep the change order and the customer’s approval with the project documents. Local rules can require particular contract contents and procedures for changes. California's contractor board, for example, explains its requirements in its guide to contracts and binding agreements. Check the authority responsible for your location rather than treating a general example as a contract that meets local requirements.

Explain the remodeling schedule

For a kitchen renovation, show the work in order:

1. Confirm product selections, deliveries and required approvals.
2. Remove the old cabinets and finishes, then prepare the walls and connections.
3. Install cabinets, countertops, flooring and the backsplash.
4. Complete painting and fittings, test the installations and clean up.

Add expected dates or durations for the stages you can schedule. Identify what depends on supplier delivery or another contractor finishing.

Add payment and acceptance terms

Before sending a remodeling estimate, include:

• The customer, project address, estimate number and date.
• When payments are due and what each payment covers.
• Which taxes apply and whether they are included in the prices.
• The date until which the price is valid.
• How the customer accepts the estimate and any required contract documents.

If the customer pays in stages, say what work or delivery must be complete before each payment is due. Confirm local deposit and contract rules before choosing the amounts.

How can DoneQuote help with the next remodeling estimate?

In DoneQuote, keep reusable service descriptions and prices, then draft from the new customer’s request. Add the priced work, allowances and exclusions. Use Phases for the work schedule and Agreements for payment and warranty terms. List any additional rates separately from the included work.

Before sending, update the selections, supplier prices, quantities, dates and terms. The customer can review the online estimate and approve the version they receive. See DoneQuote for remodeling contractors to see how the software works.