Step 1 — Review the plans and define the scope
Read the full drawing set and specifications before you price anything. The goal is to know exactly what is and is not included in your scope, and to flag anything unclear as an RFI before it becomes a loss on the job.
Write down your inclusions and exclusions. Most bid disputes trace back to scope that was assumed rather than stated.
Step 2 — Do the quantity takeoff
Measure the quantities the plans call for — square footage, linear footage, counts, and volumes — organized by CSI division. This is the single most error-prone step, and the one that most determines whether you make money.
AI plan-reading and on-screen takeoff (calibrated to the drawing scale) speed this up dramatically and reduce missed scope versus a rushed manual count.
Step 3 — Price materials, labor, and equipment
Apply current material prices and your real, fully-loaded labor rates (wage plus burden). Include equipment, and add a realistic productivity factor — the estimate is only as good as the rates behind it.
A cost model that learns from your finished jobs keeps these numbers honest over time instead of drifting from reality.
Step 4 — Add subcontractor quotes and level them
Collect sub bids for scope you do not self-perform, and level them to a common scope so you are comparing apples to apples. A low bid missing scope is not actually low.
Step 5 — Apply overhead and profit
Add your overhead (the cost of running the business) and your profit margin. Underpricing markup is the quietest way contractors lose money — the job looks won, but the margin was never there.
Step 6 — Send a clear, itemized proposal
Turn the estimate into a branded proposal with a clear scope, price, and terms, and make it easy to sign. Speed matters: the contractor who responds first and cleanest often wins.