Published On
2025-9-10
To quote a construction job, start with a site walkthrough, create a material takeoff, estimate labour hours, and then factor in overhead. Afterward, add a fair markup to cover your profit margin. Remember to account for pricing volatility with change-order clauses.
Pricing anxiety is common for new tradespeople. If you quote too low, you risk looking inexperienced, or worse, operating at a loss. Give a price too high and your clients might walk away.
Knowing how to quote construction jobs isn’t just about being confident. You need to calculate materials, estimate labour, cover overhead costs, and apply the right profit margin formulas. Set quotes that reflect your value and keep your construction company growing.
The site walkthrough is a pre-estimate visit where you inspect the physical job site before preparing a quote. As a tradesperson, you’re assessing the feasibility of the proposed work based on site conditions, access, and client expectations. It’s a good opportunity to mention potential roadblocks, adjustments, additional steps, or calculate possible unexpected expenses that might come up during execution.
The walkthrough affects your final quote by:
Document your visit with notes and photos. They’re useful for scope review, planning, and pricing justification.
Material Takeoff (MTO) is the process of listing and quantifying the raw materials required to complete a construction job. The name implies you’re “taking off” materials from blueprints line by line. Create a cost estimate detailing sheet count, length, or volume for lumber and drywall.
Your MTO will become the foundation for your overhead construction estimate. You need an accurate, specific reference to order the right quantities from suppliers, avoid waste overruns, and justify material costs. Otherwise, you’ll be left guessing figures.
Here are the best practices for making a more accurate material takeoff:
Flag lead times or delivery issues. Some items take longer to arrive, so make sure to manage client expectations. Additionally, account for pricing volatility. Material costs, especially lumber, drywall, copper, and steel, can fluctuate weekly based on demand and supply chain issues. Check with multiple suppliers and consider adding a buffer or clause for material price adjustments, especially for long-term construction projects.
After the site walkthrough and material takeoff, begin estimating labor costs by calculating the work hours for each task. To determine a reasonable, accurate estimate, account for the following:
Labour is a variable factor in estimates, influenced by project scope, crew size, and task complexity. Accurate hour estimation is important for profit and managing client expectations for detailed breakdowns.
Here’s how to set fair, reasonable timelines while maintaining profit margins:
Always inform clients of any changes in estimates to avoid them feeling blindsided.
Your MTO includes direct project costs but excludes business overhead, which you must calculate to maintain profitability. This refers to the indirect, additional costs not tied to a specific project’s scope, which include what you pay for:
These figures don’t need to be explicitly indicated in your estimate. Build them into your pricing structure as a percentage of your total job cost. Here are some best practices when making computations:
Pro Tip: Record everything, from recurring bills to one-off fees. The more accurate your records, the easier it is to quote jobs accurately and stay profitable long-term.
As a construction business owner, knowing the difference between margins and markups is crucial. Margin refers to the profit you keep from the selling price. Meanwhile, the markup is the rate at which you increase your costs to determine the selling price.
Here’s how you can get the final price you charge the client:
Quoting jobs gets easier after seeing how a real build comes together. At Skilled Trades College of Canada, we train future electricians, plumbers, and home renovation pros with hands-on experience. You’ll learn to think, work, and negotiate like a true professional.
Whether you’re starting your first apprenticeship or picking up weekend side jobs, STC gives you the tools to grow your career. Enroll today and get job-ready in 12 weeks!
9,281+
LIVES CHANGED
12,481+
WIRES PULLED
85,382+
2X4'S CUT
9,756+
PIPES LAYED
9,281+
LIVES CHANGED
12,481+
WIRES PULLED
85,382+
2X4'S CUT
9,756+
PIPES LAYED
9,281+
LIVES CHANGED
12,481+
WIRES PULLED
85,382+
2X4'S CUT
9,756+
PIPES LAYED
