How to price a remodel bid

Remodels are where bids go wrong: hidden conditions, scope creep and owner changes. This is a simple, repeatable method. The numbers below are an example, not market rates.

Step 1: Walk and measure

Photograph everything. Note what you cannot see (behind walls, under floors). Those unknowns drive your contingency and your exclusions.

Step 2: Materials takeoff

List every material with quantity, unit price and waste factor. Get current supplier prices, since they move.

Step 3: Labor by task

Estimate hours per task (demo, framing, rough-in, drywall, finish) times your loaded hourly cost, which includes payroll taxes, workers' comp and benefits.

Step 4: Subs, permits, disposal, rentals

Get written sub quotes. Check permit fees with the local building department.

Step 5: Overhead, contingency, profit

Line	Example
Direct costs (materials + labor + subs + permits + disposal)	$30,000
Contingency for hidden conditions (example 10%)	$3,000
Subtotal	$33,000
Price for a 25% gross margin on overhead and profit ($33,000 ÷ 0.75)	$44,000

Markup and margin are different. See bidding tips for why.

Step 6: Write scope, exclusions and change-order terms

Spell out what is included and what is not, how hidden conditions are handled, and that changes are priced and signed before the work. Check Oregon residential contract requirements on the CCB website.