How to Create Better Estimates & Bids for Your Contracting Business

Seven Ideas to Consider for Your Next Estimate

These aren't rules for how every contractor should write a bid. Think of them as ways to make the estimating process work better for both you and your customers.

1. 1

   Start With What the Customer Wants to Accomplish

   Before you build the estimate, think back to the conversation.

   Is the homeowner replacing an aging furnace? Fixing a drainage problem? Updating a bathroom? Preparing their home for sale?

   An estimate that connects the work to the customer's goal may be easier to understand than one that only lists materials and labor.

   Try this: Include a short project description that reflects what the customer told you they need.

2. 2

   Use the Level of Detail That Fits the Job

   A small repair may only need a simple estimate. A major remodel or installation might benefit from additional detail.

   You don't necessarily need to show every internal cost. You can provide a single total, grouped costs, or individual line items, depending on the project and how your business operates.

   Try this: Ask yourself whether the customer has enough information to understand the price and what it covers.

3. 3

   Make Expectations Clear

   Projects don't always go exactly as planned.

   Materials, site conditions, scheduling, and customer decisions can affect the work. Explaining important assumptions or limitations can help avoid misunderstandings.

   Try this: Think about which questions usually come up after customers receive your estimates. Address the most common ones before sending.

4. 4

   Give Customers Confidence in Your Approach

   Customers aren't only evaluating the price. They're also deciding whether they're comfortable hiring your business.

   Depending on the job, explaining your installation approach, materials, experience, or workmanship can help them understand what they're getting.

   Try this: Include one or two details that show what makes your approach a good fit for their project.

5. 5

   Make the Estimate Easy to Review

   Customers may be reviewing estimates on a phone, tablet, or computer.

   Simple formatting, readable descriptions, and an easy-to-find total can make the process smoother.

   Try this: Open your estimate on your own phone before sending it. Is it easy to read?

6. 6

   Make the Next Step Simple

   A customer may like your estimate but still be unsure what to do next.

   They might need to approve the proposal, ask a question, choose an option, or schedule another conversation.

   Try this: Tell the customer what happens next, whether that's accepting the estimate, calling you, or discussing the project further.

7. 7

   Have a Plan for Following Up

   Not every estimate receives an immediate answer.

   A customer might be reviewing their budget, comparing options, or waiting for the right time.

   Following up gives you another opportunity to answer questions and understand where the project stands.

   Try this: Set a reminder or use a system to keep track of outstanding estimates so they don't get forgotten.

What Happens After the Estimate Is Sent?

1. 1. Send the estimate.

   Make it easy to access and review.

2. 2. Be available for questions.

   Customers may want clarification before deciding.

3. 3. Follow up when appropriate.

   A brief, helpful message can keep the conversation going.

4. 4. Keep track of the outcome.

   Know which estimates are accepted, declined, postponed, or still open.

There's no single follow-up schedule that works for every contractor or project. Plan a helpful next step with the estimate follow-up guide. For a starting point for the message, try the free Contractor Estimate Follow-Up Email Templates.