Define the added or changed scope first
A price is only reviewable when the requested work is clear. State the original scope, the change, the reason for the change, and what is included or excluded. Cite the directive, drawing, specification, or field record that supports the scope description.
Separate work already included in the base contract from genuinely added work. If the scope is still uncertain, list the open assumptions and identify whether the amount is a proposal, allowance, or time-and-material estimate.
Build the estimate from traceable cost components
Show the basis for each cost category rather than presenting an unexplained total. Use the project’s actual labor classifications and rates, material quotes or quantities, equipment time, subcontractor proposals, and documented rework or access needs. Distinguish estimated from incurred costs.
Apply overhead, profit, tax, contingency, or other markups only as allowed by the agreement and applicable project rules. Identify the source of each markup and avoid adding the same cost in more than one category.
- Labor hours, classifications, rates, and source of the estimate
- Material descriptions, quantities, pricing date, and quote references
- Equipment, subcontractor, delivery, disposal, and rework costs
- Contract-authorized markups, exclusions, assumptions, and validity period
Explain schedule and scope assumptions
A change may affect sequencing, access, lead time, inspections, or work by other trades. State the assumed start conditions and any schedule effect separately from the cost. If the effect is unknown, say so and identify what information is needed to refine it.
Make the estimate easy to compare with the request: use clear line descriptions, state exclusions, and attach the records that support quantities and rates. Keep revisions dated so the team can see what changed between submissions.
Review before submitting
Check arithmetic, units, quantity extensions, duplicate costs, tax treatment, contract markups, and consistency between the scope narrative and the estimate. Confirm whether the contract requires a specific form, backup, or approval before work begins.
Pricing guidance is not a substitute for the project’s contract, estimating standards, or professional advice. The final proposal should reflect the actual scope and terms.