STEP 4 OF 8
Quoting and contract
Put the scope, price, and terms in writing.
Price the actual job
Build the estimate from labour, your own working time, materials, equipment, delivery, disposal, subcontractors, and job-specific costs. Account for overhead and profit rather than assuming the money left over will cover them.
Use supplier quotes where needed. Write down quantities, expected hours, and assumptions so you can compare the estimate with the finished job.
Tip: Include the small things: mobilization, picking up material, cleanup, and return trips. Repeated omissions can turn a decent-looking quote into a poor job.
Know the difference between markup and margin
Markup is the amount added to cost, divided by cost. Margin is the amount left from the selling price, divided by the selling price. The same percentage gives different results.
Example: if the included costs are $1,000 and the price is $1,250, the markup is 25% and the margin on those costs is 20%. Any omitted overhead or other costs still reduce the amount you keep.
Tip: Do not copy a universal markup from another trade. Start with your own costs, capacity, and the profit the job needs to earn.
Research and arrange the required permits
During quoting, research which permits and approvals the project requires. Confirm the requirements with the relevant local authority, including any plans, inspections, fees, and lead times, so they are accounted for in the price and schedule.
Make clear in the quote who is responsible for applying for and obtaining each permit. If that is part of your scope, arrange the applications and obtain the required approvals before the work that needs them begins. Do not assume every job needs the same permits.
Tip: If a permit requirement is still unconfirmed, state that assumption in the quote rather than guessing at the cost or promising a start date.
Make the scope easy to understand
List what you will deliver in the order the work happens. Specify the materials, quantities, finish, removal, and cleanup that affect the agreement. State important exclusions and assumptions plainly.
“Install a new fence” leaves too much open. A useful scope identifies the agreed length, style, gates, removal, and other relevant details. Put optional work on separate lines.
Tip: Someone who was not at the site visit should be able to read the quote and understand what is being purchased.
Set clear commercial terms
Document the price, currency, applicable taxes, payment milestones, scheduling assumptions, customer responsibilities, and acceptance process. Explain how extra work or changes will be approved and priced.
Deposit limits, cancellation rights, lien or holdback rules, and required contract wording vary by location and job type. Use terms appropriate to your trade and jurisdiction rather than copying a generic contract unchanged.
Tip: Avoid vague promises such as “all work included.” Clearly written inclusions and exclusions are more useful than broad language that can mean different things.
Check it before you send it
Compare the quote with your site notes. Check names, address, quantities, arithmetic, version date, and attachments. Confirm you have not carried over another customer’s details.
Send it with a short explanation: “This covers [scope]. The main options are [options]. Have a look and let’s go through any questions on [agreed time].”
Tip: Give the quote a reference or version number. When you revise it, make clear which version replaces the old one.
Useful references: BBB: what to include in a home improvement contract