Practical guide for UK trades

How to price a building job properly

A reliable quote begins with the work and cost underneath the price, not with a number chosen because it feels competitive.

1. Define what the price is buying

Write the included areas, preparation, materials, finish, waste removal, access, customer responsibilities and exclusions. A vague scope can turn a winning quote into unpaid additions.

Useful test: could a person who was not at the site visit tell what is and is not included?

2. Price direct job costs

Add materials with realistic wastage, labour for every worker, subcontractors, hire, delivery, waste, permits and specialist services. Use supplier figures that match the specification rather than a memory of what the item cost last year.

3. Include time outside the visible work

Site visits, quoting, ordering, collecting, customer calls, admin, clean-up, keys and return visits consume capacity. They may be folded into the overall price, but they should not vanish from the costing.

4. Give the job its share of business overhead

The van, insurance, phone, tools, software, storage, accountant and advertising exist so jobs can be delivered. Allocate them using a sensible job percentage or a daily overhead based on realistic billable days.

5. Separate contingency from profit

Contingency covers uncertainty. Profit is the reward after expected job and business costs. Calling the same money both contingency and profit makes the result fragile.

6. Test the awkward version of the job

Add an extra day, material rise, callback, delayed programme or customer discount. A quote is safer when the likely bumps do not instantly remove the entire profit.

7. Structure how the work is funded

Check whether the deposit covers early materials, hire and subcontractors, and whether stage payments follow real points of value in the programme.

Use your own figures

The guide explains the decision. The calculator shows what that decision does to a real job.

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