Worked example: a small material job
Suppose materials are $400, tool rental $80 and disposal $40, while delivery, paid labor and permits are genuinely zero. At a hypothetical 7% material tax, tax is $28 and the priced subtotal is $548. A chosen 15% contingency is $82.20, giving a $630.20 planning amount. The contingency is a reserve, not a contractor charge. The example excludes any unlisted work.
A practical order of work
- Use a relevant material calculator to estimate quantities. Check product coverage and add a project-specific waste allowance before requesting prices.
- Use the material quote comparison to compare two suppliers on the same quantity after pack rounding, minimums, tax and delivery.
- Ask which tools, consumables, disposal services and permits you need. A blank quote is a task to resolve, not a zero price.
- If hiring a contractor, compare written scopes as well as prices. Ask for the work description, materials, completion date and price in writing.
- Revisit the budget when the scope or product changes. Do not spend the contingency simply because it appears in the planning total.
The Federal Trade Commission recommends multiple written estimates that describe the work, materials, timing and price. The Environmental Protection Agency identifies construction and demolition materials as a waste stream; check local disposal and reuse options rather than assuming removal is free.
What this worksheet cannot price
Local labor, permits and tax rules vary. Building-code requirements, structural work, electrical and plumbing work, hazardous materials and site conditions may call for a qualified professional. The worksheet does not decide whether a project is safe or code compliant. Use the materials checklist to find line items the simple total may miss.
Method: material tax = materials × entered tax rate. Priced subtotal = materials + tax + delivery + tools + labor + permits + disposal. Contingency = priced subtotal × entered reserve rate. Planning amount = subtotal + contingency. Tax and contingency are rounded to cents. Last reviewed 25 September 2026.