There are many different types of contractor estimates. Understanding how different estimates work can make the dialog between homeowners and contractors more comfortable.
The key to a successful relationship with your contractor is communication. It is critical to establish a good communication process with your contractor so you feel comfortable asking questions and will understand the process of the work before you commit to hiring. Here are some things to consider before you put your next project to bid.
First you must have a good understanding of the work you are asking to have done. Many contractors refer to this as the scope. Though several costs may remain “To Be Determined” (TBD). An example of a TBD cost would be cost of floor tile: as they range from $5 a square foot to $30+ – the only way to provide an estimate is to give a budget price for the tile and make adjustments in billing based on the specific tile chosen and installed.
You also want to understand exactly what work – or scope – the contractor has committed to complete and what building materials you are going to purchase yourself. An example of this is who is responsible for clearing personal items from a room that will have new flooring installed and whether or not the contractors will pay fees to the city for permits on your behalf.
Schedule expectations are also important, from when the job will start and projected completion date. Daily work hours are also important: knowing in advance that you will not have a new tile shower that you can shower in for 2 weeks will help you plan accordingly. Many grout sealants take 24 hours to seal – so even though the shower looks ready for use it may not be. 
What is an Estimate? You May be Surprised at the Definition!
Wikipedia defines “Estimation“ as the process of finding an estimate, or approximation, which is a value that is usable for some purpose even if input data may be incomplete”. Now I find that interesting. Understanding this definition, you’ may wonder why contractors bother to provide estimates because no where in the definition is an estimate defined to be a fixed price, although many homeowners assume it’s the price they will pay.
Contractor Estimate Examples
Ballpark estimates for minor projects can be provided over the phone or by email, allowing homeowners to decide if they’re ready to go forward with a project at this time. These are best for straight forward projects – like replacing carpeting with a solid surface in a defined room or space.
Preliminary square feet estimates can be calculated based on square feet of added space. Builders and remodelers can use costs from similar projects they’ve done like garage additions, adding a second floor to your home or custom homes they’ve built.
For home maintenance and small repairs, you want to build a team that includes a plumber, electrician, handyman and HVAC (heating, ventilation and air condition) to handle these projects for as long as you own your home.
If you invest time interviewing home professionals and checking references, you’ll build the confidence to call and schedule small projects easily. This will save time calling around and avoid the stress of inviting unknown contractors into your home. A benefit you might not recognize, contractors will work harder for you when you make them part of your team and treat them like the professional they are.
Small project estimates that require measurements and/or materials ordered, will need an onsite visit at the beginning of the job. Good contractors can give you a labor estimate over the phone and when you meet, they should be prepared to help you select a new front door or window style, taking measurements to place the order. Remember, the contractor is working for you. You should expect to pay for this time, although it might be bundled into the final bill – you are getting the experience of the contractor. For example, a plumber who not only does installations but repairs too will likely know which trendy kitchen faucet should be avoided, because he is familiar with the products in his industry.
When Estimates are Required
Here’s the truth. For contractors – like the majority of jobs, time is money. Estimates can take dozens of hours to compile – tracking down manufacturer reps, vetting subcontractors, etc.
Homeowners should expect contractors to qualify them during an initial phone call, and you should have your own questions.
Have you determined the scope of your project? You may not have completed plans or finishes picked out but there needs to be proof that you’re committed to following through on this project.
Do you have timeline and budget expectations … and you should be willing to share them? Your discussion might end here if you want your addition done this year and your remodeler can’t accept any new work until next year.
How did you find them? And how many other contractors are you talking to? Builders are getting smart and the good ones aren’t interested in you if you’re talking to more than 3 or 4 companies – this just says you’re looking for a bidding war and noone wins in this situation.
Once your plans are done, including specifications for products and finishes, builders and remodelers can develop a final or bid estimate. At this point in the discussion, contracts outlining each parties responsibilities are also needed as they affect the estimate. With this information, your general contractor is able to get estimates from their subcontractors for plumbing, electrical, HVAC, tile installation, carpentry, painting, etc.
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