Deck Project 101: Directory for Contractors

What amount should you charge for the redesign or repair of the deck?

Well, this depends on countless factors. For example, the size of the job, complexity, material requirements, and permit fees affect the final number. Estimating the deck project requires taking several dynamic cost factors into account.

It is important to get your cost predictions right. With a clear understanding of the costs, you can adhere to the planned budget, offer competitive prices, and generate profit at the same time.

Imagine a very large quote for the decking project price. You will likely lose the contract to a lesser bidder. If the estimate is very low, you risk cutting your profits and putting financial pressure on the project.

Unfortunately, many contractors struggle with estimates. This is one of the main reasons why 53% of professional home renovation projects exceed the budget.

But don’t worry, this article explains how to estimate the deck project. Let’s go through the five main steps to create an accurate appreciation of the job.

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1. Understand the Scope of the Deck Project

First things first: the **scope of the decking project**. Is it a new build, a repair, or a replacement? And most importantly, what is the size of the job?

Use this review menu to determine the project scope:

• Goals: What does the customer expect to be done? You must have a clear understanding of what success looks like.
• Measurements: Get your tape measure out and get the dimensions of the deck, including height, square footage, and shape.
• Development Features: Does the deck require additional features, such as pergolas, handrails, privacy screens, multiple levels, shading, or a fire pit?
• Material Selection: Ask the customer about the different materials they want to use on the deck.
• Additional Work: Check if there is any additional work associated with the deck task. This might include land preparation, waste disposal, pre-manufacturing work, lighting, heating, and other relevant services.
• Time Frame: How long should you take to complete the job? Time constraints can add to the project’s scale and complexity.

Determining the project scope helps you understand the task at hand. It sets the basis for **estimating costs**. Additionally, you get a sense of the client’s expectations.

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2. Estimating the Costs of Your Deck Project

Next, compile a comprehensive list of costs for the decking project. At this stage, you want to know how much the task costs in terms of **materials, labor, permits, and overhead expenses**.

Here’s how to do this:

Material Costs

Determine the type and quantity of materials and the cost of the materials needed for the job. This is known as **material takeoff** or **quantity takeoff**, a crucial process in any construction project. Material requirements and costs, of course, depend on the deck’s size, features, and construction style. Accurate measurement is vital to getting a careful takeoff.

You can always use a cost estimate tool to translate measurements into material costs. A calculator or a mobile estimating app like Joist calculates all the math for you and comes up with accurate costs.

Labor Costs

Calculate the number of working hours required to complete the deck mission. Then multiply that by your hourly rate. This should provide you with an accurate estimate of labor costs.

Also, check if you will need to pay other contractors for specialized work such as electrical, heating, or plumbing.

Permit Costs

Some states, cities, provinces, or municipalities require permits to build or renew residential decks. Costs and requirements vary widely from location to location.

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

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

Overhead Expenses

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

Contingency

Set aside some money to cover any **unexpected costs** that may arise while building a deck. Unexpected costs can arise from high material prices, changes in deck design, and unforeseen challenges such as bad weather conditions.

Allocate between **5% and 10%** of the total budget for construction contingencies. This amount should provide you with enough financial insulation to accommodate unexpected issues. —

3. Select Your Profit Margin

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

The question is, how much profit should you include in the deck project estimate?

The average profit margin for American contractors is about **7%**. This is according to the Turner & Townsend 2024 International Construction Market Survey.

Generally, contractors’ net profit margins fall between **8% and 15%**. While this is a good earning rate, keep in mind that every deck project is unique. In addition, the local market can determine the amount you charge for decking projects.

Getting Your Profit Margin Right

Follow these tips when specifying your profit margin:

• Reduce Operating Costs. Instead of setting a high-profit margin, reduce your total operating costs and overhead expenses.
• Use Value-Based Pricing. Price your work based on the perceived value of your services. For example, if you are the only one in town who can do a certain type of deck, you can charge a premium for its installation.
• Be Transparent. Ensure it’s clear to the customer how much of their money pays for the decking costs and how much ends up in your pocket. This transparency builds trust and creates a field for explicit negotiations.
• Don’t Overprice Your Work. An excessive markup can deter customers. Keep your prices close to what other contractors would charge for the same job.
• Don’t Underprice. Ensure your profit is not so low that you risk losing money if everything doesn’t go as planned. Plus, a very low quote may lead the customer to question your credibility.
• Protect Your Profits. Draw up a contract that protects your profit from scope creep, increased costs, and changes in legislation. This, of course, is after you win the job.

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4. Use Tools That Make Estimating Easier

Calculating a deck estimate can be a boring and time-consuming process. But why handle the numbers manually when a **digital app or template** can do it on your behalf?

Get rid of the pen and paper. Move to the benefits of digital estimation, such as:

Fast Cost Estimates

An app like Joist generates estimates in just minutes. This is because most of the work is done automatically. For instance, you can feed the app with deck measurements, and it will provide a material takeoff with a single click.

Quick estimating means you can quote and provide bids for more jobs, which increases your chances of landing deck contracts.

Accurate Cost Breakdown

Digital capability reduces the possibility of human error in the estimation process. No more typos, omissions, or miscalculations. This leads to a more accurate job cost.

You can even integrate real-time numbers about labor rates, material costs, and other variables to improve cost predictions.

Practical Budget Help

Most cost estimate solutions contain useful budgeting tools that help contractors customize resources more efficiently. These tools will enable you to make informed financial decisions throughout the project lifecycle.

Cost Optimization and Analysis

An estimating app or template makes it easy to understand and optimize decking costs. For example, you can draw insights from past decking projects to inform new budgets. Estimating can also help you determine key areas for cost reduction and profit maximization. —

5. Provide an Estimate for the Deck Project

After compiling the costs and adding your markup, check that the numbers are logical. If everything verifies, all that remains is to **give the estimate**.

This may seem like a trivial step, but the **presentation** really matters. In a sense, all estimation efforts come down to how the customer views those numbers. A bad presentation can spoil a good estimate.

Below are some pointers for submitting a deck project estimate:

• Use a **professional document appearance.** Make it clear, organized, and easy to read.
• Include a **form** with your company details, customer information, and project address.
• Add a **brief project description.** This summarizes the scope, materials, and expected results.
• **Cost breakdown.** In a detailed tabular format, show exactly where the money is going.
• **Note assumptions** or special considerations, so there are no surprises later.
• Include **other key details** like payment terms, final dates, and estimate expiration.
• If useful, prepare **multiple options** showing different designs, materials, or budgets.

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

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

5 Common Estimating Mistakes to Avoid

We’ve discussed how to estimate the deck project. Let’s now look at what *not* to do when estimating deck projects:

1. **Undercutting the Project Scope.** Take enough time to determine every part of the decking project, including site setup and side tasks.
2. **Misunderstanding Customer Expectations.** Get on the same page with the customer from the start. Ensure you understand exactly what the customer wants.
3. **Making Guesses.** Cost estimation is not a place for guessing. Verify material, labor, and overhead costs before applying them to the estimate.
4. **Using Outdated Data.** Building costs fluctuate over time. Always work with current prices, especially when it comes to materials and compliance.
5. **Ignoring Financial Risks.** You should always anticipate and mitigate financial risks like delays and price fluctuations. This is what the contingency amount is for.