ProfitQuote Trade Guides

How to Price a Building Job

A price that looked fine on the day can end up barely breaking even three weeks later. Usually it's not one big mistake — it's a few small costs missed at pricing stage. Here's a method that catches them.

Quick answer: Work out your materials, your realistic labour time, anything you're subcontracting, site costs, a share of your overheads, contingency for the unknowns, then add your profit. Write down your assumptions and exclusions before sending the price.

1. Know exactly what you're pricing

Your price is only as reliable as what you wrote down about the job. Note what the customer wants, the measurements, the finish, access, working hours, who's supplying what, and what "making good" covers. Photograph anything awkward or anything you couldn't fully inspect.

Break the job into stages — strip-out, prep, first fix, install, finish, waste removal. That makes it far easier to spot what would otherwise get missed.

2. Work out materials from real quantities

Measure the job rather than working from memory of a similar one. Include fixings, adhesives and protection, not just the obvious materials. Add delivery and a reasonable allowance for waste and breakages.

3. Price labour realistically

Include setup, moving materials, protection, cleaning, merchant runs and snagging — not just time spent with tools in hand. If the job needs two people, price for two. Multiply the time by a day rate that actually covers your wages, any employer costs, and time that isn't billable.

Our labour-pricing guide explains how to work out that rate from your own costs, rather than copying a competitor's day rate.

4. Add the other job costs

List subcontractors, plant hire, scaffolding, permits, parking and skips separately. Then add a share of your overheads — insurance, vehicle, tools, software, admin. Those costs exist whether or not there's an invoice for this specific job.

5. Add contingency, not hope

Contingency covers things you can see might go wrong but can't price exactly yet — it's not a substitute for checking the job properly first. Note anything uncertain (hidden pipework, rot, damp, ground conditions) and be clear how you'll handle it if it turns up.

6. Add profit properly

Profit is what's left after every cost, labour included. If your total cost is £8,000 and you want 20% profit, your price is £10,000 — not £9,600. Divide by 0.80; multiplying cost by 1.2 comes up short.

Worked example
Pricing elementAmount
Materials and deliveries£3,200
Labour£3,400
Plant, waste and subcontractors£750
Overheads£350
Contingency£300
Total cost£8,000
Price at 20% profit£10,000

7. Check it over before you send it

Go through the price against what's actually included, line by line. Check VAT, payment stages, how long the price stands, your assumptions, exclusions, and how you'll handle extras. It should be easy for both of you to see exactly what's covered.

Don't reduce the price just because the total looks high. If you want to bring it down, change what's included and explain why.

Check the job before you send the price

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