Free Template: The Complete Guide to Construction Quotes

What is a Construction Quote?

A construction quote is a form submitted to a client that tells them the costs of completing a job if they hire your firm to do the work. It is the price which a contractor needs to be paid in order to conduct and finish the work. Construction quotes include detailed costs of labor, materials, equipment rental, demolition and any other relevant charges. Typically, a construction quote form also includes an expiration date to denote that the price quotes are applicable for a limited time period of time. 

Construction pros create quotes only after they have sufficient information about the scope of the work and materials needed so they can accurately predict the costs. They have likely visited the job site, consulted with vendors and subs, and met with the clients already.

What is an RFQ in Construction?

Not to be confused with a RFP or request for proposal, a request for quote is used when a builder wants to determine the price of materials from a vendor. A construction RFQ template is a tool that helps  formulate construction quotes because they provide the cost of specific material, the availability of the materials and the vendor’s ability to deliver them for the job being quoted. 

How do Construction Quotes Differ from Construction Estimates?

The terms construction quote and construction estimate are often referred to as being the same, but they are not. Construction estimates are only an approximation of cost of a project supplied to a client. They are often written up before a site visit using standard pricing of materials as opposed to specific quotes and can be useful if you have a client in the early stage of their inquiry who wants to gauge costs to see if they match the budget they have in mind. When using estimates it is wise to make clear to the client that they are ballpark figures, not the actual amounts you will be charging. 

A construction quote is a more solid reflection of the cost of doing a project based on vendor pricing, consultation with clients, site visits and other specifications. That being said, since both estimates and quotes require the same type of information to be included, you can typically use a construction quote template to create an estimate as well. 

Why are Construction Quotes Important?

Quoting a construction job is one of the most crucial parts of the pre-construction phase of a  project. If done accurately, the total cost cited in the construction quote form often matches the ultimate invoice issued to the client for the work. It shows the client the elements that make up the total budget so they understand the value of the services you are providing. Clients are not the only ones who benefit from an accurate and thorough construction quote. It helps remodelers calculate the total profit they can expect to add to their bottom line.

Therefore, devoting attention to getting construction quotes right is essential to growing a business and building a clientele. Making the construction quote look as professional as possible, and delivering it on time signals to the client that a business holds itself to a high standard in every aspect of its work.

What is Included in a Construction Quote?

Now that we’ve covered the importance of construction quotes and how they fit into the lifecycle of a construction project workflow, let’s explore the details of what every construction quote sample form should include. Here are the most common elements that make up a construction quote and how to write a quote for a construction job.

• Contact Information: Business Owner Include the business name, address, phone number email and the name of the best contact person for the client to reach out to. If your construction business has a logo adding it makes the construction quote example form look professional and brands it as uniquely yours.
  
• Contact Information: Client This is the spot for the name of the client and of the project, along with the address, phone number, email and any other relevant contact information.
  
• Description of Work: A brief outline of what the project entails.
  
• Quote Number: Every construction quote should be assigned a number so that all parties have a way to track and refer to it. Choose a consistent and  intuitive numbering system to organize all construction quotes.
  
• Labor and Materials: List the labor and materials that will be needed to complete the job and any other relevant costs. The amount of detail can vary with the option of adding subsections or headings. This will depend on your needs and preferences, but it should be concise, but comprehensive. Learn how to price construction projects precisely.
  
• Summary of Costs: This is the price quote for the work that you are submitting to the client for their review and approval. 
  
• Terms & Conditions: Add relevant details around the terms of the quote such as payment terms, initial deposit, general timeline and more. 
  
• Acceptance & Signature: Include a place on the document for the client to approve, date and sign the quote.
  
• Business Owner Signature: You as the business owner must sign also to make the document binding for all parties. 

How Do You Write a Construction Quote?

Now that you know the information that needs to be included in a construction quote, how can you assure that the price quote you provide clients will play out accurately through the life of the project?

Here are some steps to take while preparing a construction quote:

Conduct a Client Consultation: Whether through a discovery call or visit to the homeowner’s site, make sure you have a clear idea of the extent of the work your client is seeking. This avoids unpleasant budget surprises and misunderstandings of what work the quote covers. 

Determine the Floor Plans: As every construction pro knows, creating the floor plans of a project are key to gauging the materials and labor that will be needed to do the construction. Prepare these as a basis for the quote. 

Do Takeoffs: Just as important for formulating your quote is doing a construction takeoff to determine how much of each material you will need to complete the project. 

Factor in Material Quality, Style: When calculating the costs per square foot of materials make sure you have an understanding of what types the client is seeking for their renovation and how that impacts the price. Then, factor that into your quote. 

Leverage Software & Tools: With so much paperwork involved in running a business and clients seeking a clear vision of what their home will look like post-renovation, tap into tech tools to make the work easier. Platforms, such as Houzz Pro, provide all-in-one management software specifically tailored for construction work. Contractors who use it to do takeoffs report creating them 10 times faster, meaning they can get their construction quotes to clients more quickly to beat the competition. Visualization tools such as 3D floor plans and AI Walkthroughs also help them ready their quotes. Clients can approve the quotes through e signatures, and once a project begins, the client dashboard eases project collaboration and puts communications all in one place so you don’t waste your time searching through emails and other documents. 

Last Word on Construction Quotes

Construction quotes make up the backbone of understanding, determining and communicating the cost of a residential renovation project. Technology can relieve some of the burden of creating professional, accurate and job-winning quotes. Sign up for a free trial of Houzz Pro to explore takeoffs, estimates and online payment and e-signatures that can aid in building and submitting construction quotes.

To keep learning, learn how to master the next step in the construction project lifecycle: building a construction schedule.