What should a contractor's estimate include?

Your business name and contact details, the customer and job site, a description of the work, what is included and excluded, priced line items, and how the balance will be paid. Add your license number where your state requires it, and a sales tax line only for the parts of the job that are taxable where you work.

How is an estimate different from a quote?

Use the document title to say which one you are giving. An estimate is your best price for the described work. A quote or bid is the price you are putting forward for that same scope. Either way, write down what is included and what is not.

How do I show sales tax and a deposit?

Put a tax rate on the estimate and mark each line taxable or not. Tax rules for labor and materials vary by state, so check your department of revenue. For the deposit, some states set a cap. In California the down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less.

Free template

Free contractor estimate template

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Estimate

Document titleEstimateQuoteBid

This estimate is valid until .

Estimate number

Estimate date

Valid until

Project name

Your business

Remember my business details on this device

Stored only in this browser. Nothing you type is sent.

Business name

Logo

Address

Phone

Website

License number

Many states require your license number on bids and contracts. Check your state licensing board.

Issuing state or board

Customer

Customer name

Job site address

Billing address (if different)

Phone

Scope of the work

Description of the work

Included

Not included / exclusions

Assumptions

For example: Price assumes no hidden rot behind existing drywall.

Line items

Line items
Group	Description	Qty	Unit	Unit price ($)	Taxable
Group for row 1	Description for row 1	Quantity for row 1	Unit for row 1	Unit price for row 1	Taxable row 1

Unit can be one of the suggestions or your own text.

Totals

Subtotal: $0.00
Sales tax (0%): $0.00
Total: $0.00
Deposit
Balance: $0.00

Sales tax rate (%)

Tax rules for labor and materials vary by state. Check your state's department of revenue.

Deposit and payment

Deposit / down payment

Deposit amount

Deposit due

Some states cap deposits on home improvement work. California: no more than $1,000 or 10 percent of the contract price, whichever is less (CSLB).

Payment schedule

Balance

Accepted payment methods

Estimated start date

Estimated duration

Change orders

Changes to the scope will be written up and priced before the extra work starts.

Notice of cancellation

Optional. This box starts empty and does not fill in legal wording. See the FTC Cooling-Off Rule and your state's home improvement rules.

Acceptance

By signing, the customer accepts this estimate and the terms above.

Customer name

Signature

Date

Contractor signature

Date

What to put on a contractor estimate

A general contractor, remodeler, handyman, painter, flooring installer, drywall crew, or HVAC tech usually needs a price the customer can read today. Put the estimate above the argument. The list below matches the fields in the form.

Document title: Estimate (the default), Quote, or Bid. Say which one you are giving.
Estimate number, estimate date, and a valid until date. The form starts at 30 days and you can change it.
Project name, if you use one.
Business name, address, phone, email, and website if you have one.
License number, plus the state or board that issued it. The field is optional and shown by default. Example placeholder: CA CSLB #123456.
Customer name, job site address, and a billing address if it differs.
Description of the work, what is included, what is not included, and the assumptions you priced.
Line items grouped as labor, materials, equipment, disposal and cleanup, or permits and fees. Each row has quantity, unit, unit price, a taxable checkbox, and the amount.
Subtotal, sales tax on the taxable lines only, and the total.
Deposit or down payment, a payment schedule, the balance, and the ways you accept payment.
Estimated start date and duration.
A change-order line you can edit. The default says changes to the scope will be written up and priced before the extra work starts. That is a practice line, not a legal claim.
An empty notice of cancellation box, if you need to add wording for a specific job. The form does not fill it in.
Customer signature and contractor signature, each with a date.

License number, sales tax and deposits

Many states license contractors. Check your state licensing board for what must appear on bids and contracts. In California, for example, CSLB says a home improvement contract should identify the contractor, their business address and their contractor license number. If you leave the license field empty, it stays off the printed estimate.

Whether labor, materials or both are taxable depends on the state, and sometimes the city or county. Check with your state's department of revenue. The template has a tax rate field and a taxable checkbox per line so you can match your state's rules. The rate starts at 0. Sales tax is applied only to lines you mark taxable.

Some states limit deposits on home improvement jobs. In California, the down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less (CSLB). Enter the deposit as a dollar amount or as a percent of the total. The form subtracts it from the total and shows the balance.

Estimate or quote?

An estimate is your best price for the work as described. If the scope changes, the price can change, so say what is included and what is not. Whether a signed estimate is binding depends on its wording and your state's law. The title toggle (Estimate, Quote, or Bid) is how you label the document. The line under the title reads: this estimate is valid until the date you set.

Skip the typing: say the job, send the estimate

Quotebefore is an iPhone app for contractors. Describe the job on site in your own words. It turns that into line items with quantities and units, fills in prices from your own earlier estimates, and produces a PDF on your letterhead. If the job, quantities or price are missing, it tells you before you export. The app reminds you on working days 3, 7 and 12 after the quote is sent, then stops.

First 3 estimates free. No time limit, no account, no watermark. Then $22.99 a month or $179.99 a year through the App Store, cancel any time.

Get Quotebefore on the App Store

Questions

What should a contractor's estimate include?: Your business name and contact details, the customer and job site, a description of the work, what is included and excluded, priced line items, and how the balance will be paid. Add your license number where your state requires it, and a sales tax line only for the parts of the job that are taxable where you work.
Is an estimate legally binding?: An estimate is your best price for the work as described. If the scope changes, the price can change, so say what is included and what is not. Whether a signed estimate is binding depends on its wording and your state's law. This page does not make a federal claim.
How is an estimate different from a quote?: Use the document title to say which one you are giving. An estimate is your best price for the described work. A quote or bid is the price you are putting forward for that same scope. Either way, write down what is included and what is not.
How do I show sales tax and a deposit?: Put a tax rate on the estimate and mark each line taxable or not. Tax rules for labor and materials vary by state, so check your department of revenue. For the deposit, some states set a cap. In California the down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less.