Writing an estimate a homeowner can compare line by line

Homeowners comparing bids look at the work, the materials, the completion date and the price. They don't automatically pick the lowest bid, and they ask for an explanation when bids differ a lot.

What to put on the page

• Who you are. Give your business name, address, phone number and license number. A homeowner can check the license with the state or county.
• Your insurance. Homeowners ask for proof of insurance, so attach a certificate or say one comes with the estimate.
• The work. Describe it room by room or stage by stage, clearly enough that another contractor would price the same job.
• The materials, by maker and brand. "Install kitchen cabinets" tells the homeowner nothing. A named maker and brand does, with the design drawings attached.
• The dates. Give an estimated start date and completion date.
• The price and the payment schedule. Show the total, and when each payment is due.
• Permits. Say that you'll pull the building permits. Asking the homeowner to get the permits is a known warning sign of a scam.
• The warranty. Put it in writing, with what it covers, what it doesn't and how long it lasts.
• Subcontractors. Name any the job needs, and the work each will do. Homeowners check their credentials and insurance too.

An annotated example

What to do next

Before you send the next estimate, read it the way the homeowner will, against the list above. Rewrite any line a homeowner would have to call you about.

When your bid isn't the lowest

A homeowner holding three bids compares what they can read. When a cheaper bid leaves out the model, the dates or the permits, the homeowner asks that contractor why. Homeowners also hold the final payment until they're satisfied with the work, so list the walk-through and sign-off that come before it.