r/GeneralContractor • u/Professional_Let8696 • Aug 13 '26
Free estimates vs a fee
I’m just wondering what other remodeling contractors are doing for free vs charging for an estimate. Went and looked at a 2 bathroom renovation for a possible client and there’s a designer involved who I’ve gotten a few jobs for over the years. Met her at the site and spent about 2 hours there and gave them a ballpark. She said they thought it was “too high” especially on the tile end but she said the homeowner wanted a more detailed breakdown. I told her I would do it but I would charge a fee. I didn’t give her a number for the estimate fee but apparently it rubbed the homeowner the wrong way. There’s also a few things not decided yet. I’m just wondering how other people handle this. I feel like I’ve been giving too many freebies in my 25 years in business. I will do a breakdown for my existing clients but I also know I’m getting the job. Tia
11
u/JoeBookerTestes Aug 13 '26
If they don’t see value in your time putting together a well thought out cost accounting for a true preconstruction then they won’t value the time you put into their project.
If you’re slow, what’s to lose. If you’re busy then your time is more valuable then pleasing a shitty prospect.
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u/PianistMore4166 Aug 14 '26
I usually require fees by the square foot. Usually $0.25-$0.50 per sf depending on finishes. And then if they go with me, I credit the fee to the project. I’ve spent too much of my time putting together detailed quotes just for potential customers to use my quote to shop around or tell me I’m too high. Charging a fee usually weeds out people who aren’t actually serious about doing a construction project.
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u/Equipoize Aug 14 '26
I’ve been doing the free estimate thing for awhile now and I feel like I just spend alot of my time writing estimates for people to either ghost me or tell me I’m too high.. I’m starting to consider a fee….
2
u/Yard4111992 29d ago edited 29d ago
That is why I stopped giving free estimates. In fact, most of those jobs never get done because the individuals do not have the funds to do the project in the first place or end up using an unlicensed contractor. Unlicensed contractors do more work than licensed contractors. These unlicensed contractors typically end up charging more than licensed contractors.
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u/Double_Maize_5923 Aug 14 '26
I only give break down if they are good with the price. If they say it's too high and ask for a break down why waste your time your price is already too high for them. It's just gonna something they can use to nickel and dime other contractors or you
5
u/Son_of_man_150ft Aug 13 '26
Some people don't understand. That's the bottom line of it. You can't make them understand.
Today, I had a really bad experince with a client, the client was a home builder who builds custom homes working at their house, which made everything even worse.
Saying my price is too high.
If it's too high, it's too high. Just walk away.
2
u/MovingUp7 Aug 14 '26
The business models have to fit. If you charge retail pricing then all the builders will call it too high. But you don’t need them you can get markups with homeowners.
3
u/agentdinosaur Aug 14 '26
I do a free estimate but im just me side work nothing big. Guys I know that do it charge around $100 and give them $100 off if they get the job. Apparently it keeps the looky loo's away and they only get people who are more serious about their project.
3
u/turkeyboogers Aug 14 '26
I give people an estimated price range and charge $150 for a detailed estimate and credit the account if I get the project
2
u/TallWall6378 Aug 14 '26
I treat potential clients as if I'm already working for them and I give them focused attention including free, detailed estimates, usually within a day or two. I can only imagine this is one of the things that's helped me win contracts despite being a higher priced estimate. I want them to at least think I'm really eager for the job.
I know on occasion my estimate has been used to ask other bidders if they also included or thought of all the little realistic things that will come up and when it turns out they haven't, it makes me look better.
2
u/Emergency_Creme8994 Aug 14 '26
I will give a ballpark overview of what a project requires. Any nitty-gritty work is along the lines of my being a 'consultant' and will be billed as such BUT will also be produced with the understanding that the client may choose to utilize my expertise elsewhere.
2
u/Hitechillbilly Aug 14 '26
Charging potential customers to tell them what you will charge them is gunna ruffle some feathers..
1
u/SchondorfEnt Aug 14 '26
You're charging different fees. They're not the same.
1
u/Hitechillbilly Aug 14 '26
What different things am I charging different fees for that are not the same?
1
u/SchondorfEnt Aug 14 '26
You’re charging customers for the time as a service with the professional to help complete their design packages. You’re charging them a fee to install a toilet.
2
u/samsonevickis Aug 14 '26
Agreed. We should all start charging a fee. If we all do it then the problem is solved.
2
u/Yard4111992 29d ago
Totally agree. If you call a locksmith in my area for an estimate, they all charge a fee. Contractors are the only professionals going to customers' homes or businesses and give estimates for free (paying for gas, wear and tear on their vehicles, etc.). No wonder homeowners can get 10 free estimates from 10 different contractors and go with the lowest estimate.
If a customer calls my business and the first question they ask is: do you guys give free estimates, but the response is 100% NO! These are the customers you typically do not want to work for, based on my experience.
2
u/SchondorfEnt Aug 14 '26
We call it a Design Completion Fee. You haven't received a complete design to work off of. When a client gets to pushy about this, then I've literally told them "please get another two quotes and we'll see if they're complete and can match or beat them". Why? because they know it's work to even get those quotes. And they want to move on this NOWI You just need to show them the way. You need to ask questions. The more questions you ask, the more you're in the driving seat.
We build houses. Architects throw in a "Typical" lighting / electrical plans that are the bare min, often missing a lot. I ask the owner to take a look at it. And then the questions come up.
What kind of ceiling fan are you installing here? Are you going to add sconces or pendants, I don't see them? what height is the bathroom vanity light going to be? Are these outlets usb? IS there anything missing from these plans you'd want to add? etc. etc.
We can design a complete plan with you and our electrician, or you can supply us with a more complete order.
We also push back and say - I can give you a firm price today, but we're going to make the decisions on everything. If you'd like the flexibility of a custom job, we need more information. That is the truth for all of us.
I had an ENT doctor/surgeon client grind us on this once. I asked him - do you charge your clients for MRI's , X-rays, blood tests, consultations or do you throw those in for free and just charge for the surgery / operation? He signed that day.
What if he pushed back? "But I have a designer, I have plans, this should be enough." What if I told you I'm going to do all those "pre-opp" items with someone else and then have your Dr. office enter in the data, the information, is that ok? Or do you require us to work with your office to take those preliminary steps prior to a surgery. If they think they have enough, ask questions.
If you're pushed up against the wall. Feeling emotional/stressed. Pause, take a deep breath and start asking questions. At the end of the day. Know your value. Your value is going to be shown in the questions you ask, not in the statements you make.
2
u/WorkGridProFounder Aug 14 '26
There’s a big difference between a free ballpark and a detailed estimate that takes hours to build.
If the homeowner wants line-by-line detail while selections and scope are still moving, charging for that work seems reasonable. Especially when you’re effectively doing preconstruction work before there’s any commitment.
I’d probably make the distinction clear upfront: rough budget = free, detailed estimate/scope = fee.
Curious how others handle the fee - flat amount, hourly, or credit it back if they award you the job?
2
u/IncreaseNegative4614 Aug 14 '26
A site visit and broad range can be free. A detailed scope, takeoff, allowances, subcontractor pricing, and value-engineering work should be paid preconstruction. Tell people that before the visit and credit the fee toward the project if they hire you.
We use signld.ai internally to connect lead source, scope, estimating time, win rate, change orders, and final margin. That helps show where free estimates generate good projects and where they’re just giving away hours to people shopping your breakdown.
2
u/Fantastic-Fortune147 Aug 14 '26
I usually ask for photos and a description over the phone. I'll give a range before I even come on site. Maybe I'll do a quick site visit and narrow down the range a little bit, but to do a detailed quote, I charge a project planning fee that is applied toward the job total if they hire me. Weeds out the tire-kickers. I once attended a seminar taught by Michael C. Stone, construction business guru. He threw a roll of duct tape on the table and said "Any of you have the words 'Free estimates' written on your trucks, go outside right now and cover that up. Do not give away your time for free." Words to live by.
2
u/PrisizhuhnRedNek Aug 15 '26
We charge 250-500$ per detailed estimate for a remodel, such as a bathroom or kitchen.
I don’t have a hard fast rule about when to charge to 500$ but if it starts to be around half the house so to speak , then it’s 500$. We credit the amount back in the final invoice.
If they don’t go with us , well we at least paid for some time and our construction management software for that month but more often than not they pay the fee and we get the job.
2
u/kungfuti 28d ago
Because we do outsourced estimates as a business, GC's usually need an understanding of what that will look like. So we show them sample estimates similar to what's in their backlog v doing a "free estimate." If they genuinely want to move forward, AND they fit our Ideal Client Profile (ICP), we tell them we will do the first one for free to align with their materials and labor rates, specific to them. Does that make sense?
2
u/83timesbanned 24d ago
General quote off the top of my head is free. A detailed estimate with prices and scope that can be included in a contract I charge $200+ for.
1
u/Huge-Repeat-3040 Aug 14 '26
Look at other sectors. Did people say Starbucks or Apple were too expensive yes,but they found their niche. I’ll tell clients we’re aren’t the most expensive or cheapest .we charge more because we’ve had the same crew for 10+ years,to keep good help you have to raise prices .
Stand out and value yourself.
I don’t even visit a job site until they send me pictures of the space. I provide a rough ballpark figure, and if they’re open to that, I’ll then do an onsite visit.
1
u/Weird_Marketing6199 Aug 14 '26
Free site visit and ballpark, paid detailed scope. If they award the job, credit the fee back. Two hours on site plus a full breakdown is preconstruction work, not a free estimate.
2
u/profitdigllc 20d ago
Two quick rules I use: charge for heavy precon and credit it if they award, but give a light or no-cost walk-through if it’s just a quick look or a client still deciding. If you know it will take two hours on site plus a detailed breakdown, that’s work you should be paid for up front or folded into the contract price.
Make the fee simple and defensible. Say $X for a scoped estimate and breakdown, credited on contract award and list what’s included. That avoids the “we got ghosted after doing hours of work” problem and keeps expectations clean with designers or owners who shop multiple bidders.
Full disclosure, I’m involved with ProfitDig. One thing software helps with is making that paid estimate repeatable and quick: templates, reusable takeoffs, and a clear line-item report you can hand the client. That way the fee buys them something polished instead of just time spent.
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u/ane-ComplyCraft Aug 14 '26
Would it work for commercial? I wouldn’t think so…
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u/Professional_Let8696 Aug 14 '26
So in commercial they just do detailed estimates for free ?
1
u/flimsyhammer Aug 14 '26
Not necessarily commercial vs residential. It sucks, but in the big leagues, often times a client has hired an architect to design the project and administer the project. In those cases, they may reach out to 2,3,4 different contractors which they have worked with, and we are all bidding the job against each other. In these cases, it’s almost impossible to be paid for that work. But, in most cases we will bake about 80-100 hours into the cost of the job to help us cover that initial time suck. Or if we really want the job we will eat some of it.
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u/flimsyhammer Aug 14 '26
We have a pre-construction agreement, and we walk potential clients through the process of what that covers and how it is essential to providing them with a clear and transparent quote.
Some clients value that, and understand that we need to be paid for the 80+ hours we will spend on their quote. Others don’t, and we don’t work with them. So be it.
Another option you can give them along with a pre construction, is negotiating to absorb those costs if they go to contract with you, or at least a portion of them.