Request for an Itemized Estimate Letter

Why ask in writing and by item

Prices are hard to compare when each contractor describes the job differently. One writes a single number; another lists every task and material. If you ask every contractor for the same level of detail, the differences show up where they belong, in the lines, and you can compare them honestly.

The Federal Trade Commission's advice is to get written estimates, each stating what the job involves, what will be used, when it ends and what it costs. It also says not to pick the lowest bid automatically and to ask for an explanation of big gaps between bids. The letter here puts those requests in one place so you can send the same message to each contractor.

What the letter asks for

It asks for a written, itemized estimate for the work you describe: the work, the materials, the estimated start and completion dates, and a price for each part of the job. It asks for the contractor's license number and proof of insurance, along with a name, address and phone number. Those are the identifying details the FTC says a written contract should carry, and it is easier to get them before you are close to signing.

Selectors add optional paragraphs. If an insurance claim is paying for the work, the letter asks for enough detail that you can share the estimate with your adjuster; the NAIC says the adjuster may want to review estimates before repairs begin. If you are comparing bids, the letter says you may ask the contractor to explain differences.

A final paragraph covers the contract stage. If a contract is offered, it asks that every promise about scope and about labor and material costs be in writing, that no blanks be left, and, if you will sign at home or away from the contractor's permanent place of business, that the contract include a written statement of your right to cancel. The letter also says plainly that it authorizes no work.

Worked example: a bathroom ceiling after a leak

A homeowner needs a bathroom ceiling replaced after a pipe leak and wants to compare contractors. She describes the job in one sentence in the work box, picks yes for insurance and yes for comparing, sets a reply-by date, and reads the preview. The letter names the job, asks for the line items, mentions that the estimate will go to her adjuster, and says she may ask for explanations of differences. She sends the same text to each contractor by email and keeps copies. When the answers come back she lines them up on one page, and the gaps in scope show up where a bid skips something the others include.

Tips

Keep the work description plain and short; leave scope decisions to the contractor's reply. Do not put a price in it, since you want their number. Send it before you sign anything. And if a contractor refuses to put an estimate in writing, treat that as information.

Related

Before you choose, run through the hiring checklist. Before you sign, use the contract checklist. For a sense of what labor costs behind a bid, see what repair tradespeople are paid.