You have learned your trade and become a master. Now it is time to move out on your own. Licensing, insurance, taxes and sales are all new skills you will need to learn to succeed. But, none is more important than learning how to give your potential client an accurate price estimate for the project at hand.

Determine an exact materials list

Go over every measurement in your notes to determine the exact types and quantities of each material that the job will use. Write these quantities down and add 10 percent to each for damaged materials. Any unopened materials left over can usually be returned to the hardware store after the project is complete, or the excess materials can be stored away for repairs or future projects.

Determine a materials cost

Determine an up-to-date price for every material that will be used on the entire project. You can call the pro-desk at large lumber and materials stores for current price and availability in your area, or look for the price online. All of the nationwide chain supply stores, and many local hardware stores, have websites to make this information available with a click of the mouse. Record each individual price on your estimate. Add up the cost of all of the materials and then add on whatever sales tax is charged in your area. Call the store you plan to use and get the cost of delivery to the job site and add that to your total. Now you have the total materials cost for your estimate.

Determine a labor cost and complete the estimate.

Labor cost is determined by total man hours required for a job multiplied by the total hourly wages paid to the crew for the duration of the project. A quick way to get a general idea of labor cost is to multiply the total materials cost by 1.5 to obtain your labor cost. This is an industry standard and will allow for payment of employees as well as yourself. It is also a good guide to determine the number of employees you will be able to hire to accomplish the project in the allotted time. Add the labor total with the materials total and this is the total cost of your estimate of the project. It is vital that every aspect of the project be included in the estimate. Clients rely on you to know what you are doing and forgetting half of the materials can result in termination, non-payment, a lawsuit, and bad references.

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More information on construction estimating.

More information on avoiding the pitfalls of construction estimating.