If you're a home renovations contractor, you probably write many estimates for your customers. Estimates are written before a job to give a customer the most accurate indication of how much the renovation project will cost them.
Submitting a low estimate can land you a job, but if the project costs much more than your estimate, your customer will never come calling again. Therefore, you have to be accurate.
- Look at the overall cost of materials that you'll need to complete a home renovation job. Make a list of everything that needs to be done to properly renovate your customer's home. Account for everything, down to how many hammers or nails you'll need to purchase. Multiply the numbers on this list by the cost of each individual item to arrive at a materials estimate.
- Consider how many people you'll need to help you on a home renovation project. Each employee is going to need to be paid, and that paycheck will come out of the money paid to you by the customer. The salary for every contractor on your team will need to be accounted for when you give the customer your estimate.
- Try to calculate exactly how much time it will take to complete the job. This will help when trying to give an accurate estimate, because it will tell you how long you'll need to pay your employees as well as how long you'll need to pay yourself.
- Add up the cost of the materials and the work hours you will need to provide your customers with the most accurate cost estimate you can.