1. Define the scope before calculating the price
A price is only as reliable as the description behind it. Record what the customer wants, the measurements, finish level, access, working hours, who supplies each item and what making-good is included. Photograph awkward areas and note anything you could not inspect.
Separate the work into stages—demolition, preparation, first fix, installation, finishing and waste removal. That makes missing work easier to spot and gives you a sensible structure for labour and materials.
2. Build the materials list from quantities
Use measured quantities rather than a remembered total from a similar job. Include fixings, adhesives, protection and consumables as well as the obvious materials. Add delivery charges and a realistic waste allowance where cutting, breakage or batch matching makes it necessary.
- Check whether quoted merchant prices include VAT.
- Record how long supplier prices are valid.
- Identify customer-selected items that need a provisional allowance.
- Do not hide labour or overhead inside an unexplained materials markup.
3. Estimate labour honestly
Allow for setup, moving materials, protection, cleaning, merchant runs and snagging—not just time with tools in hand. If two people are required for lifting or safety, price both people. Then multiply the hours or days by a labour rate that covers wages or drawings, employer costs where applicable, and non-billable time.
Our labour-pricing guide explains how to calculate that rate from your own costs rather than copying a competitor’s day rate.
4. Add job costs and overhead recovery
List subcontractors, plant, scaffolding, permits, parking, skips and specialist disposal separately. Then allocate a share of overheads such as insurance, vehicle costs, tools, software, accountancy and admin. These costs exist even when they do not appear on a supplier invoice for this job.
5. Price risk with contingency—not hope
Contingency is for uncertainty you can identify but cannot price exactly before work starts. It is not a substitute for investigating the job. State assumptions around hidden services, rotten structure, damp, asbestos, ground conditions or customer-supplied materials and explain how unexpected work will be approved.
6. Add profit using margin, not guesswork
Profit is what remains after every cost, including labour and overheads. If your total cost is £8,000 and you want a 20% margin, the selling price is £10,000—not £9,600. Dividing cost by 0.80 produces the correct price.
| Pricing element | Amount |
|---|---|
| Materials and deliveries | £3,200 |
| Labour | £3,400 |
| Plant, waste and subcontractors | £750 |
| Overhead allocation | £350 |
| Contingency | £300 |
| Total cost | £8,000 |
| Price for a 20% margin | £10,000 |
7. Sense-check and present the quote
Before sending, check the price against the scope line by line. Confirm VAT treatment, payment stages, validity period, start assumptions, exclusions and the process for variations. A professional quote should make it easy for both sides to see what the price covers.
Do not reduce a price simply because the total feels high. Change the scope, specification, programme or margin deliberately and show the customer what changed.
Check the job before you send the price
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