Deck Job Estimating 101: How Contractors Can Price Jobs for Profit 

How much should you charge to build, remodel, or repair a deck? 

Well, that depends on a myriad of factors. For example, the job’s size, complexity, material requirements, and permit fees all influence the final figure. Estimating a deck job requires taking several dynamic costing factors into account. 

It’s important to get your cost predictions accurate, too. With a clear understanding of costs, you can stick to the planned budget, offer competitive pricing, and turn a profit at the same time. 

Imagine quoting too high a price for a decking job. You’ll likely lose the contract to a lower bidder. And if the estimate is too low, you risk cutting into your profits and putting a financial strain on the project. 

Unfortunately, many contractors struggle with estimations. That’s one of the main reasons why 53% of professional home renovation projects go over budget. 

But don’t worry, this article explains how to estimate a deck job. Let’s go over the five key steps to creating an accurate deck job estimate. 

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1. Understand the Scope of the Deck Job 

First things first: scope out the decking project. Is it a deck repair, replacement, or new build? And more importantly, what’s the scale of the job? 

Use this checklist to determine the project’s scope: 

• Objectives: What does the client expect you to do? You should have a clear understanding of what success looks like. 
• Measurements: Break out your tape measure and get the deck’s dimensions, including height, square footage, and shape. 
• Deck features: Does the deck require additional features, such as a pergola, railing, privacy screens, multiple levels, shading, or a fire pit? 
• Material selection: Ask the client about the various materials they’d want to use on their deck. 
• Additional work: Check whether there’s any extra work tied to the deck job. It may require ground preparation, waste disposal, prefabrication, lighting, heating, and other related services. 
• Timeframe: How long do you have to complete the job? Time constraints can add to the scale and complexity of the project. 

Determining the scope of the project helps you understand the task at hand. It lays the groundwork for estimating costs. Plus, you get a feel for the client’s expectations. 

RELATED ARTICLE — How to Write a Scope of Work for Your Contractor Projects 

2. Estimate Your Deck Job Costs 

Next, compile a comprehensive list of costs for the decking job. At this point, you want to know how much the job will cost in terms of materials, labor, permits, and overheads. 

Here’s how to do that: 

Material Costs 

Determine the type, quantity, and cost of materials needed for the job. This is known as material or quantity takeoff, and it’s a crucial process in any construction project. Material requirements and costs will, of course, depend on the deck’s size, features, and build style. Precise measurement is vital to obtain accurate takeoffs. 

You can always use a cost estimating tool to translate measurements into material takeoffs. A decking calculator or mobile estimating software like Joist does all the math for you and comes up with accurate cost estimates. 

Labor Costs 

Calculate the number of work hours required to complete the deck job. Then multiply that by your hourly rate. That should provide you with a fairly accurate estimate of labor costs. 

Also, check whether you’ll need to pay other contractors for specialized work such as electrical, heating, or plumbing. 

Permit Costs 

Some states, cities, counties, or municipalities require permits for building or renovating residential decks. Permit costs and requirements vary widely from location to location. 

For example, DC’s Department of Buildings charges deck permits based on the cost of construction. You’ll pay $36.30 for a deck job costing less than $500. Meanwhile, a deck job priced between $1,001 and $1,000,000 costs $55.02–$22,033 in permit fees. 

Note that permit fees may also include the cost of inspection, paperwork, and code compliance. 

Overheads 

Tally all the direct and indirect expenses related to the decking job. These may include equipment rentals, fuel, office rent, and other costs. 

Contingency 

Set aside some funds to cover any unexpected costs that may arise during the deck’s construction. Unexpected costs can arise from material price hikes, changes in deck design, and unforeseen challenges such as adverse weather conditions. 

Allocate between 5% and 10% of the total budget to construction contingency. That amount should provide you with a sufficient financial buffer to absorb unexpected issues. 

3. Set Your Profit Margin 

After calculating decking costs, you can now add your markup. This is your profit margin—how much you’ll earn from the job. 

Question is, how much profit should you put down in a deck job estimate? 

The average profit margin for US contractors is around 7%. That’s according to Turner and Townsend’s 2024 International Construction Market Survey. 

Generally, a healthy net profit margin for contractors falls between 8% and 15%. While that’s a good earning rate, keep in mind that every deck job is unique. Plus, the local market can very well determine how much you make on decking jobs. 

Get Your Profit Margin Just Right 

Follow these tips when setting your profit margin: 

• Cut operating costs. Rather than setting a high profit margin, work on reducing your overall operating costs and overheads. 
• Use value-based pricing. Price your work based on the perceived value of your services. For example, if you’re the only one in town who can do a particular type of deck, you can charge a premium for it. 
• Be transparent. Ensure it’s clear to the client how much of their money pays for the decking cost and how much ends up in your pocket. Such transparency fosters trust and creates room for candid negotiations. 
• Do not overprice your work. A high markup can deter clients. Keep your prices close to what other contractors would charge for the same job. 
• Don’t go too low either. Ensure your profit is not so low that you risk losing money if everything doesn’t go as planned. Additionally, a very low quote might lead the client to question your credibility. 
• Protect your earnings. Draw up a contract that safeguards your profit against scope creep, cost hikes, and changes in legislation. That’s, of course, after winning the job. 

RELATED ARTICLE — What Is Value-Based Pricing? 

4. Use Tools That Make Estimating Easier 

Calculating a deck estimate can be a tedious and time-consuming process. But why crunch the numbers manually when a digital app or template can do it for you? 

Ditch the pen and paper. Reap the benefits of digital cost estimation, such as: 

Quick cost estimates 

An app like Joist generates estimates in mere minutes. That’s because it does most of the work automatically. For example, you can feed the app with a deck’s measurements, and it will provide material takeoffs with the click of a button. 

Quick estimation means you can quote and bid for more jobs, increasing your chances of landing deck contracts. 

Accurate cost breakdowns 

Digital estimators minimize the possibility of human error in the estimation process. No more typos, omissions, or miscalculations. This leads to more accurate job costing. 

You can even incorporate real-time figures on labor rates, material costs, and other variables to improve cost predictions. 

Practical budgeting assistance 

Most cost estimation solutions have handy budgeting tools that help contractors allocate resources more efficiently. Such tools will enable you to make informed financial decisions throughout the project’s lifecycle. 

Cost optimization and analytics 

An estimator app or template makes it much easier to understand and optimize decking costs. You can, for instance, draw insights from past decking jobs to inform new budgets. The estimator can also help you identify key areas to cut costs and maximize profits. 

5. Present the Deck Job Estimate 

After tallying the costs and adding your markup, double-check that the numbers make sense. If everything checks out, all that’s left is to present the client with your estimate. 

This might seem like a small, trivial step, but the presentation really matters. In a sense, all your estimation efforts come down to how the client sees those numbers. A bad presentation can make a good estimate look poor. 

Here are some pointers on presenting a deck job estimate: 

• Use a professional-looking document that’s clear, organized, and easy to read. 
• Include a formal header with your company details, the client’s information, and a project title. 
• Add a brief project description that summarizes the scope, materials, and expected outcomes. 
• Break down costs in a detailed, tabular format that shows exactly where the money goes. 
• Note assumptions or special considerations so there are no surprises later. 
• Provide other key details, such as payment terms, deadlines, and estimate expiration. 
• If helpful, prepare multiple options to show different decking styles, materials, or budgets. 

Traditionally, contractors rely on templates for this step. Templates are a good way to keep estimates looking polished and consistent across projects. 

But software takes things a step further. With tools like Joist, you can skip the formatting headaches and create professional estimates in minutes. The software ensures your branding and layout are consistent, automatically calculates costs, and makes it simple to reproduce estimates across multiple jobs.  

5 Common Estimating Mistakes to Avoid 

We’ve discussed how to estimate a deck job. Let’s now look at what not to do when estimating deck jobs: 

1. Underestimate the scope of the project. Take the time to thoroughly scope out every decking job, including site preparation and side tasks. 
2. Misinterpret customer expectations. Get on the same page with the client from the start. Ensure you understand exactly what the client wants. 
3. Make guesses. Cost estimation is no place for guesswork. Verify materials, labor, and permit costs before putting them in an estimate. 
4. Use outdated data. Construction costs vary over time. Always work with the current prices, especially when it comes to materials and compliance. 
5. Ignore financial risks. You must always anticipate and mitigate financial risks such as delays and price fluctuations. That’s what the contingency is for.