Free Contractor Estimate Template

Every contractor needs a professional, consistent format for presenting project costs. This free contractor estimate template is designed for general contractors, specialty trades, and construction professionals across all disciplines — framing, electrical, plumbing, HVAC, roofing, concrete, and more. It provides a comprehensive, industry-standard structure for presenting materials, labor, overhead, profit, and terms in a way that builds client trust and wins jobs.

The template is adaptable. If you are a specialty trade, use the sections that apply and customize the scope description and line items for your specific work. If you are a GC managing multiple subcontractors, the template accommodates sub work with appropriate markup language.

What Is a Contractor Estimate?

A contractor estimate is a professional document that communicates the expected cost of a construction, renovation, or service project. It is the primary tool contractors use to communicate pricing to clients before any work begins, and it forms the basis for the formal contract if the client decides to proceed.

Unlike an informal ballpark figure, a professional estimate is detailed, structured, and specific. It shows the client exactly where the money is going — materials, labor, equipment, permits, fees, overhead, and profit — so they can evaluate the pricing and make an informed decision.

A contractor estimate is not a fixed-price contract. It is a projection based on the information available at the time. Professional estimates always include language acknowledging that the final cost may vary if conditions change or scope expands.

Key Sections of a Contractor Estimate

Contractor Header — Company name, logo, contact information, state contractor license number, and proof of insurance. The license number is required on all estimates and contracts in most states.

Client and Project Information — Client name and address, project site address (if different), the date of the estimate, a unique estimate number, and the estimate validity period (expiration date).

Scope of Work — A clear, detailed description of what the contractor will do. Be specific: describe the work by location, task, and standard. Reference any plans, specifications, or drawings if applicable. Include what is explicitly excluded from the scope — this is as important as what is included.

Materials Breakdown — Itemized list of all materials with quantities, unit prices, and totals. Organized by category or by room/area if the project has distinct phases.

Labor — Itemized labor costs by task. Show hours or days estimated and the labor rate. For time-and-materials work, state the hourly rate and note that final cost will be based on actual time.

Equipment — Any equipment rental, purchase, or internal equipment charge. List by item and rate.

Subcontractor Work — Any trade work performed by subcontractors. List by trade and include the subcontractor's name if known. Apply your markup if applicable.

Permits and Fees — All known permits, inspections, and associated fees. Note who is responsible for obtaining each permit.

General Conditions — Job site costs not tied to a specific line item: temporary utilities, site supervision, cleanup, insurance, bonds.

Overhead — Business overhead costs attributable to this project (expressed as a percentage of subtotal or as a lump sum).

Profit — The contractor's margin for managing the project and bearing risk (expressed as a percentage of subtotal or as a lump sum).

Contingency — A percentage or dollar amount set aside for unforeseen conditions. Typically 5-15% depending on how well-defined the project is.

Payment Schedule — Define deposit amount and timing (typically 25-50% of total), milestone payments tied to project phases, and the final balance due upon completion.

Estimated Timeline — Proposed start date, key milestones, and estimated completion date. Note that timeline is weather-dependent and subject to material availability.

Terms and Conditions — Change order process, material substitution policy, weather delay provisions, warranty information, and what happens if the client cancels.

How to Write a Contractor Estimate

Step 1: Define the Scope Completely — Before you can price a project, you must fully understand it. Review plans, specifications, and site conditions. If the scope is vague, ask clarifying questions before estimating. A poorly defined scope leads to underestimating and disputes.

Step 2: Quantify Materials Accurately — Perform a complete material takeoff. Use supplier unit pricing for current costs. Do not guess — material quantities that are significantly off lead to embarrassing corrections after the estimate is sent.

Step 3: Estimate Labor Realistically — Use historical production data from similar projects. Add time for mobilization, setup, cleanup, and travel. Never underestimate labor — it is the most common source of contractor losses.

Step 4: Account for Conditions and Risk — Assess site conditions, project complexity, access challenges, and any regulatory requirements. Apply contingency appropriately. Better to have contingency you do not use than to be caught short.

Step 5: Apply Markup Consistently — Apply overhead and profit as separate line items at consistent rates. This makes your estimates comparable across projects and demonstrates transparency to clients.

Step 6: Present Professionally — Deliver the estimate with a brief explanation of your approach and your competitive advantages. Follow up within 48-72 hours to answer questions.

Sample Contractor Estimate

SummitBuild General Contractors

800 Builder's Row, Denver, CO 80202

Phone: (555) 500-6000 | License: GC-234567 | Insured & Bonded

ESTIMATE #SB-2026-0414

Date: April 14, 2026

Valid Until: May 14, 2026

Client: Rachel and Kevin O'Brien

Project: Kitchen Renovation — 1200 sq ft single-family home

Address: 4450 Mountain View Drive, Denver, CO 80202

Scope of Work: Complete kitchen renovation including demolition of existing cabinetry and flooring, reconfiguration of plumbing and electrical for new layout, installation of new custom cabinets, countertops (quartz), appliance installation, and all finish work. Details per design drawings dated 03/20/2026.

Payment Terms: 30% deposit ($22,542) to commence work. 40% ($30,056) at rough-in approval. 30% ($22,543) at final completion.

Related Templates

• Construction Estimate Template — For new construction projects.
• Home Renovation Estimate Template — For renovation-specific scopes.
• Roofing Estimate Template — For roofing contractors.
• Plumbing Estimate Template — For plumbing contractors.
• Electrical Estimate Template — For electrical contractors.
• Free Estimate Template — Universal free estimate format.

Contractor Estimate vs Quote vs Bid

In the trades these three terms are often used interchangeably but they carry different legal weight if a dispute reaches a courtroom:

• Contractor estimate — a written best-guess at cost. The contractor can revise the final invoice if scope, site conditions, or material prices change, as long as the variance is reasonable and documented in a change order signed by the homeowner.
• Quote — a firm, fixed price for a defined scope. The contractor must honor the quoted amount even if material costs rise after the quote is accepted. Use a quote only when every line item is fully specified.
• Bid — a formal sealed response to a private or public request for proposal, typically binding once accepted, with rules set by the requesting party. Common for commercial and government work.

For most residential renovation and repair work, the estimate is the right document. Quotes are appropriate for repeat services where the scope rarely varies, such as monthly lawn care or a kitchen-cabinet refacing where measurements and materials are already locked in.

State Law Requirements for Contractor Estimates

Most U.S. states require licensed contractors to provide a written estimate for any residential job over a threshold dollar amount. The exact rules vary by state:

• California — Business and Professions Code 7159 requires a written, signed home-improvement contract for any project over 500 dollars. The contract must include the estimated total, payment schedule, start and completion dates, and a three-day right of cancellation notice. An estimate alone is not enough.
• New York — General Business Law 771 requires a written home-improvement contract over 500 dollars with a detailed scope of work, total price, payment schedule, and the contractor license number on every page.
• Texas — Property Code 53 protects contractors who file mechanic liens but requires a written contract for residential remodeling work over 5,000 dollars in counties with population over 250,000.
• Florida — Section 489.147 requires the license number on every estimate, contract, advertisement, and vehicle. Estimates over 2,500 dollars must include a written warranty disclosure.
• Illinois — Home Repair and Remodeling Act requires a written contract for any work over 1,000 dollars with the consumer-rights brochure attached.

Even where the law does not require it, a written and signed estimate protects both parties. Verbal agreements over 500 dollars are unenforceable in many small-claims courts under the statute of frauds.

Digital Signatures and Acceptance

A contractor estimate becomes legally binding the moment the homeowner signs it and the contractor begins work. Acceptable signature methods include:

1. Wet signature on a printed estimate — old-school but unambiguous. Keep the original in your project file.
2. Electronic signature via DocuSign, HelloSign, or Eonebill acceptance links — fully enforceable under the federal E-SIGN Act of 2000 and the state-by-state Uniform Electronic Transactions Act.
3. Photographed signature on a PDF — acceptable but weaker than a true e-signature because metadata is missing.
4. Email reply confirming acceptance — works for amounts under 500 dollars but is inferior to a formal signature.

Always retain the signed estimate, all change orders, and proof of delivery (DocuSign audit trail, email timestamps, or certified mail receipt) for at least the statute of limitations on contract disputes in your state, typically four to six years.

Common Mistakes That Lead to Disputes

The most frequent issues that turn a contractor estimate into a payment dispute or licensing-board complaint:

• Vague scope — a one-line description such as kitchen remodel is grounds for a homeowner to refuse the final invoice. Itemize every demolition, framing, electrical, plumbing, and finish task.
• Missing change-order policy — without a written clause requiring written approval for scope additions, homeowners can reasonably refuse to pay for extras.
• No allowances called out — if cabinets are listed as a 12,000 dollar allowance and the homeowner picks 18,000 dollar cabinets, the difference is on them only if the allowance is explicit.
• Verbal price changes — never agree to a scope change by phone or text without a written change order signed before the additional work begins.
• Stale estimate — never honor an estimate older than the expiration date. Material prices move 5 to 15 percent in a typical year and lumber, copper, and steel can move 30 percent.
• No license number — in licensed states an estimate without the license number can be voidable by the homeowner and is a licensing-board violation for the contractor.