What is a Carpentry Estimate?

A carpentry cost estimate spells out the cost of a building project including the price of labor and materials. An accurate estimate sets expectations for clients about whether the project plans match their budget and provides carpentry pros information on what a project will cost them to do. An estimate is typically not binding, and is followed by a more detailed quote. A quote is the amount you will charge clients for a job and usually becomes binding once all parties approve it.  

In some cases, you may be asked to submit a bid, along with other contractors. Some clients seek out a proposal, which is as detailed as a bid, but also includes more extensive information about your business and past projects.

Why are Carpentry Estimates Important?

Carpentry estimates help clients, but they also are a crucial guide for carpentry professionals. An estimate helps them determine how much they need to charge for a job, not only to cover the cost of carrying out the project, but to account for operating expenses, and a profit margin to keep their business growing. 

Several factors influence the cost of a carpentry job. Here are some common ones:

• Extent of Demolition Consider what is in the existing space, especially for remodeling jobs. How much will demolition cost as well as the expenses for transporting and disposing of the construction waste?
• Job Type The cost of a job will differ depending on the type of project, and whether it is new construction, or the remodeling of an existing space. The cost of doing a makeover of a kitchen will differ from refinishing a basement or redoing a bedroom. Be sure to detail what services you are offering, and what is included in the estimate.
• Quality of Materials The type of wood or other materials a homeowner is seeking will cause variations in the price also. It is important to have clarity on what type of materials a client wants. 
• Project Size You will need to adjust your hourly or flat rate depending on the square footage of the space that is being constructed or renovated. 

When Do You Send a Carpentry Estimate?

A carpentry estimate typically comes early in the life cycle of a project and may be the first document you provide a potential client. It details the extent of the project and provides an educated guess of what that project will cost the client to help them decide if they want to go forward with it. If the answer is yes, a more formal quote is a logical next step.

What Should be Included in a Carpentry Estimate Template?

Most carpentry templates include the same basic information. Here is a list of the most common elements to cover:

• Company Information Make your carpentry estimate template uniquely yours by branding it with your business details, and logo. Include the name and contact information of the person who will be the main contact person to make it easy for clients to reach out and have their questions answered.  
• Client Information Include the name of the client, name of project and the person who will be the main contact point as the project progresses.
• Estimate Number & Date This information helps you keep your estimates organized and makes them easier to find. Create an intuitive numbering system to simplify locating and tracking your carpentry cost estimates. Including a date also provides a basis for how long the prices are effective should you decide to include an expiration date.
• Table of Labor & Materials Detail the estimated labor and materials that will be needed to complete the project. Make it easy for clients to understand the elements that make up the costs of carpentry work. 
• Summary of Costs This is a tally of all the costs involved in the carpentry job, and any other costs.
• Acceptance & Signature Include a section for all parties to sign, date and accept the carpentry cost estimate template.

Optional Sections to Include in a Carpentry Estimate Template

You may want to add additional sections to your carpentry estimate. The extra information can help clarify the details of the job, especially in large and complex projects. Here are some optional sections to consider depending on the job:

• Scope of Work This details what work is included in the carpentry project and which items and services are not. It shows the homeowner that you understand the extent of their vision and can serve as a reference should questions arise later. 
• Discounts Do you offer reduced rates for first-time customers or clients that pay for the project up front? Include any details here.
• Terms & Conditions This section could cover your policy on change orders or how much time a client has to inspect and sign off on a completed project. It is wise to  include an expiration date for the carpentry cost estimate as prices change over time. This can also double as a deadline for clients to make a decision.
• Disclaimers These can clarify that an estimate is not a formal contract for the carpentry work and will be followed with a more detailed, binding quote or bid. If your estimate has an expiration date, note it here.
• Licensing & Permits List any permits that will be needed, costs associated with them and timelines for acquiring them. 

How to Create a Carpentry Estimate Step-by-Step

Now, let’s get started gathering the information to include in the carpentry estimate. Here’s a step by step guide of what to do next:

1. Choose Your Tool Decide how you are going to create your estimate. Will you start with a carpentry estimate template? Using a template is much easier than starting with a blank document because it shows the type of information that should be included. Use a downloadable carpentry estimate template that you can print and email to clients, and choose one that is fully editable so you can customize it to your project and business. Another excellent option is carpentry estimation software which further simplifies the process so you can create estimates as quickly as clients expect them. 

2. Review Project Plans No two projects are alike. When a homeowner says they want a kitchen remodel make sure you know the full extent of what they are seeking. Go over the plans, talk to the clients and visit the site if necessary to gain a full understanding of the scope of the work. 

3. Do Takeoffs Getting the right measurements is key to drafting an accurate estimate. Conduct takeoffs to determine square footage and how much materials you will need. 

4. Estimate Materials & Labor

Knowing the cost of materials and labor is the bulk of any carpentry project estimate. 

Labor Estimates

Determine your labor costs by multiplying the number of hours it will take to complete the job by the hourly labor rate of your workers and yourself. This is preferred over charging a flat rate for jobs. Here are some areas to consider when calculating your labor estimates:

• Drawings and Design Consider who will be drawing up the plans, and any related design work for the space. Figure in those additional costs.
• Demo Determine the cost of demolishing the existing space, and consider the extent of the demolition whether its cabinets, and flooring, or a complete gut job. Also, figure in the cost of disposing of the waste and any fees associated with doing so.
• Installation The cost of the installing cabinets, for example, will be higher for custom jobs as opposed to off the shelf cabinets. 
• Travel Labor costs often include how long it takes to travel to and from the site, and to leave the site to pick up materials, or haul away  construction waste. 
• Ordering Purchases Consider the cost of ordering and picking up materials.

Material Estimates

When estimating materials, here are some common items you will need to price out: 

• Cabinets The quality and customization level will impact the cost.
• Wood Determine what type of wood is needed for the project, its availability and cost.  Exotic wood and lots of design elements such as crown molding drives up the costs more than standard types of wood. Make sure to clarify what your client is seeking.
• Drywall Measure to determine how much drywall will need to be installed in new construction, or replaced in remodels
• Sundries Consider the cost of nails, screws and other related items.

Other Expenses:

• Overhead Incorporate other expenses into your estimate include operating costs, license fees, insurance and other recurring costs. 
• Profit Earning a profit is key to helping your business grow and thrive. Figure a profit margin into your estimate.

5. Calculate Total Costs Add up all your costs to reach your total estimate

6. Seek an Another Opinion Getting a second pair of eyes on your estimate can help you avoid mistakes and help you see what you may have missed. 

7. Review & Send Take one  last look and hit send!

8. Track Responses Make sure you have a process for gathering feedback from clients, and tracking changes and approvals as they come. 

Alternatives to Carpentry Estimate Templates 

Carpentry estimate examples and templates are a great place to learn the art of carpentry estimating, but they are not the only tool available to help you hone your skills. More and more, construction pros use carpentry estimate software as a faster and more efficient way to deliver professional estimates.

The takeoff tool built into Houzz Pro carpentry estimate software lets you estimate 10 times faster without using a single piece of paper. With the Houzz Pro database of local labor and material costs in your region you can  figure upfront costs more accurately. Or, upload your own cost data, and deliver carpentry cost estimates faster than your competitor.

Final Tips for How to Estimate a Carpentry Job

Before you ship off that estimate, here are some final considerations and tips:

• Analyze Project Scope First Start by getting a grasp of the full scope of the project. What services are needed, which are you providing, and which are excluded? Clarify any gray areas with your clients to assure everyone is on the same page.
• Assess Skill Levels Needed The higher skilled the carpentry labor needed, the more you will need to pay them. View the project from a skills level, and note any areas that may require a more specialized carpenter.
• Evaluate Potential Risks Are there hidden surprises behind the walls? Will weather impact the progress of the project? Consider some of the less-than-perfect possibilities and possible costs. 
• Factor in Overhead Value the cost of running a business, and fold those expenses into your estimate so that you do not come up short.
• Coordinate with Other Subs What other work is being done at the site such as plumbing, electrical and installation of appliances? Coordinate with those subcontractors to keep your carpentry work on schedule.
• Consider Competitors Knowing how your estimates compare to those of other carpenters in the region will help you understand how your prices fit in your market.
• Embrace Continuous Growth Make adjustments as you learn and as the marketplace changes. 

Conclusion

Mastering the art of carpentry estimation takes a little work. But it is made easier when you know what information to include and how to find those details. Using the right tools also speeds up the learning process.

Houzz Pro Business management software that is specially designed for carpenters helps construction professionals deliver carpentry estimates faster, and improves the efficiency of all their business operations. Explore our takeoff tool, estimating features and more by signing up for a free trial of Houzz Pro Carpentry Business Software.