How to Price a Small Construction Job (Without Losing Money)

Most small contractors don't lose money because they're bad at the work. They lose it because the price was wrong from the start. A few bags of cement left off, a day of labour nobody counted, a client who keeps adding "one small thing", and the profit is gone before the job is done.

Here's a straightforward way to price a job that keeps you safe.

1. Go and see the job yourself

Never price off a WhatsApp photo if you can avoid it. Walk the site, take measurements and look for problems the client hasn't mentioned, like cracked walls, bad drainage, rotten board or no water on site. Write everything down while you're there.

2. List every material, line by line

Break the job into parts (foundation, walls, roof, finishing) and list what each one needs. Blocks, cement, sand, steel, board, nails, tie wire, paint, all of it. Get current prices from your hardware store, because prices move fast.

Add a little for waste. Blocks break, sand gets washed away and cuts never come out perfect. Around 5 to 10% on materials is normal for most jobs.

3. Count labour in days, not "a few days"

Work out how many people you need and for how many days, then multiply by each person's daily rate. Be honest about how long things really take, including setting up, cleaning up and the days rain stops work.

Don't forget yourself. If you're on site working or supervising, your time is labour too.

4. Add transport and equipment

Trucking material, renting a mixer, hiring a backhoe, gas for running around to the hardware: these add up quickly and are easy to forget. Give them their own lines.

5. Add a contingency

Something always comes up. A contingency of around 10% covers price increases and small surprises. Tell the client it's there. Most people appreciate an honest price more than a low one that keeps changing.

6. Add your profit

Your profit isn't the same as your labour. It's what keeps your business running: tools, phone, transport, quiet months. Put a fair margin on top. A business with no margin is just a very tiring job.

7. Put it in writing

Send a proper written estimate with:

• What's included and what isn't
• How long the price is good for (30 days is common)
• How much deposit you need to start
• When the balance is due

This protects you when the client says "I thought that was included."

Quick checklist before you send the price

• Did I go to the site?
• Did I count waste?
• Did I include transport and equipment?
• Is there a contingency?
• Is there profit on top of labour?
• Does the client know what's not included?

We have a free construction estimate template in Excel on cwloot that does the maths for you. Search "estimate" on the site to find it.