Template: estimate worksheet, six steps to a contract amount
In one paragraph
The estimating method on one page: takeoff, labor units, materials with tax and waste, overhead per billable hour, margin by division, and a stated contingency, ending in the dollars-and-cents contract amount a home improvement contract requires and the maximum lawful down payment. The worked example prices a 200-amp like-for-like panel change in an occupied stucco home.
The rule
The contract amount includes the entire cost of the contract including profit, labor and materials (B&P 7159.5(a)(1)); the down payment may not exceed $1,000 or 10% of that amount, whichever is less (7159.5(a)(3)). Selling price = cost ÷ (1 − margin); a 20% margin needs a 25% markup on cost.
Why it matters
An estimate that skips overhead or confuses markup with margin looks fine on the day and costs the year. The worksheet forces every step, every time, so two panel changes on the same street get the same price and the business earns a margin, not just a wage.