How to price a construction job for where the job is

Because costs change with the place. Labor rates, material delivery and local building codes all move the price. Costs even differ inside one metro area: the same scope can price several percent lower one county over. A national average with no adjustment misses in both directions.

The fix is a national cost book adjusted by ZIP code. Wylie Estimates makes that adjustment for every part of the country.

Building codes, permits and license rules differ by state and by city. Wind, snow, earthquake and energy codes each add materials and labor that a base price leaves out. Find out what your building department requires before you price, and put those items on the estimate as their own lines.

A bid should also carry your business name, your license details where your state requires them, and clear terms. This is not legal advice. Check the rules where you work.

In the open. An allowance is a set amount for an item the client has not picked yet, like tile or fixtures. Size each one from current prices for the grade the client wants, and name it on the bid. Contingency is money set aside for unknowns. Name what it covers. Renovation work hides surprises behind walls, and a named reserve keeps a surprise from turning into a loss.

After the cost is known and before the bid goes out. Whatever tool you use, insist on seeing your cost and your markup as two separate numbers. A single blended number hides the decision that decides your year.