Contractor Estimate Template for General Contractors

What a contractor estimate needs that a basic template does not

A cleaning company can send an estimate with five rows and a total. A contractor cannot. Owners hiring someone to open up walls want to know you are licensed, insured and pulling the permit. They want to know when each payment is due and what happens when a wall comes down and the wiring behind it is wrong. The blank template (Word, Excel or PDF) and the form above give you the layout. These are the lines that make it a contractor estimate.

License, insurance and permit lines

License number. Put it in the header, under your business name and address. Several states require it on contracts and advertising for licensed work. Owners also check it on the state board's website, so make it easy to find.

Insurance. Add one line to the notes: "General liability insurance with [carrier], certificate of insurance available on request." If you carry workers' compensation, say so. It answers the question before the owner asks.

Permits. Say who pulls the permit and how the fee is billed. A common approach is a separate line item for permit fees at cost, so the owner sees it is a pass-through, not markup. If the owner is pulling the permit, write that in the notes and remove the line.

Example line items for a kitchen remodel

Description	Qty	Unit price	Amount
Building and electrical permits (at cost)	1	$850.00	$850.00
Dumpster, 20 yd, two pulls	2	$525.00	$1,050.00
Demolition of cabinets, countertops and backsplash	1 job	$1,800.00	$1,800.00
Cabinet allowance, owner selects	1	$12,000.00	$12,000.00
Cabinet installation (labor)	24 lin ft	$95.00	$2,280.00
Electrical, new 20A circuits by licensed electrician	4	$425.00	$1,700.00
Drywall patch and paint, kitchen walls and ceiling	1 job	$1,400.00	$1,400.00

Subtotal: $21,080.00. Countertops, plumbing and flooring would follow as their own rows. For bigger jobs, group rows by phase (site prep, rough-in, finishes) and put the phase name at the start of each description so the owner can follow the order of work. Trade-specific examples are on the construction estimate and remodeling estimate pages.

Allowances

An allowance is a budget for something the owner has not chosen yet: cabinets, light fixtures, tile, appliances. Write the allowance amount on its own row and add one sentence to your terms: "Allowance items are billed at actual cost. If the owner's selection exceeds the allowance, the difference is added by change order; if it is under, the difference is credited." Set allowances at a realistic number. A low allowance makes your estimate look cheap and then makes you look dishonest when the real selections come in.

Deposit and draw schedule

Long jobs are paid in draws, not in one lump at the end. Tie each draw to something the owner can see, not to a date. A typical remodel schedule:

• 10% at signing, or your state's maximum if lower
• 30% when rough-in inspections pass
• 30% when cabinets and drywall are complete
• 25% at substantial completion
• 5% after the final walkthrough and punch list

Some states cap the deposit on home improvement work. California, for example, limits it to $1,000 or 10% of the contract price, whichever is less. Check your state before you set the first draw.

Change orders

Write the change process into the estimate before the job starts: "Changes to the scope will be documented in a written change order showing the added or deducted cost and any schedule impact, signed by both parties before the work is done." Number change orders against the estimate (CO-1, CO-2 for estimate 2026-018) and keep a running total. Owners who see each change in writing rarely dispute the final invoice.

Exclusions

Contractors get burned by what the estimate did not say. A short exclusions list for a remodel might read: hazardous material testing or abatement, structural repairs found after demolition, relocating gas lines, appliance installation, landscaping repair from equipment access, and furniture moving. Anything you exclude can still be added later by change order.

Liens and retainage, in plain words

Mechanics liens. In most states, a contractor or supplier who is not paid can file a lien against the property. Many states require a preliminary notice to the owner within a set number of days after work starts, and deadlines vary widely. Look up your state's rules before you need them. On jobs with draws, owners or lenders often ask for a lien waiver with each payment. Agree on that process up front.

Retainage. The owner or general contractor holds back a percentage of each payment, often 5% to 10%, until the job is done. It is common on commercial work and less so on residential. If a client will hold retainage, state the percentage and when it is released, for example "within 30 days of final completion".

This is general information, not legal advice. Your state contractor board is the best source for the exact rules.

Estimate, bid or proposal

The words overlap, but they are not the same:

• Estimate. Your expected price for a scope you described. It can be revised as the scope firms up.
• Bid. A price submitted against someone else's plans and specs, usually in competition with other contractors, and usually fixed if accepted.
• Proposal. A bid or estimate plus a written scope, schedule and terms, laid out to be signed.

Most residential work starts with an estimate. If the owner signs the "Accepted by" line, it now works much like a proposal. For larger jobs, follow it with a full written contract.