Allowances, exclusions and assumptions
These three are what turn a number into an estimate you can stand behind when the job changes.
- Allowances are budget lines for things the client hasn't picked yet, like tile or fixtures. If they choose something above the allowance, the difference is a change order, not an argument.
- Exclusions say what is not in the price. "Electrical by others" in writing saves a phone call later.
- Assumptions describe what you expect to find. "Assumes existing subfloor is sound" is the line that makes the charge for replacing a rotted subfloor fair instead of a surprise.
How long should an estimate stay valid?
Thirty days is common, and shorter makes sense on material-heavy work. Lumber prices swung hard between 2020 and 2022, and contractors holding 90-day prices ate the difference. The template sets a valid-until date 30 days out; change it to suit the job.
Estimate, quote or bid
An estimate is your best number for the work as you understand it. A quote is usually a fixed price. A bid is a price submitted to compete for a job, often against a set of plans. What matters most is what the document says, so write down which one it is.
Questions contractors ask
Is a contractor estimate legally binding?
Usually an estimate is treated as an approximation and a signed contract is what binds. Many states also require a written home improvement contract with specific terms before work starts, so an accepted estimate is normally followed by a contract.
Should I charge for estimates?
Many contractors give simple estimates free and charge for design work or detailed takeoffs on large jobs, often credited back if the client hires them. Say which one applies before you visit.
Missing a line you always need? Email support@vanreceipts.app and we will add it to the template.