Job Estimation: Win More Bids Faster

Estimation is where you win or lose money before the job even starts. Underbid and you’re working for free. Overbid and you lose the job. AI helps you hit the sweet spot — fast.

The Estimation Problem

Most tradespeople write estimates on their phone, in their truck, after a long day. It’s the last thing you want to do. So estimates go out late, look unprofessional, or miss line items. Every missed estimate is a missed job.

AI changes the equation: accurate, professional estimates in minutes instead of hours.

The Estimation Prompt

Here’s a prompt that works for any trade. Copy it, fill in your details:

Create a professional job estimate with these details:

Customer: [Name], [Address]
Job: [Description of work]
Materials:
- [Item 1]: $[price]
- [Item 2]: $[price]
- [Item 3]: $[price]
Labor: [hours] hours at $[rate]/hour
Additional costs: [permits, travel, disposal, etc.]

Format it professionally with:
- Company header area (I'll add my logo)
- Itemized materials with prices
- Labor breakdown
- Subtotal, tax (if applicable), and total
- Payment terms: 50% deposit, balance on completion
- Estimate valid for 30 days
- A brief scope of work description

Electrician Example

Create a professional estimate for:
Customer: Maria Santos, 456 Elm Drive
Job: Upgrade 100-amp panel to 200-amp with whole-house
     surge protection

Materials:
- 200-amp Square D Homeline panel: $380
- 200-amp main breaker: $85
- 2/0 copper SER cable (25 ft): $275
- Whole-house surge protector: $180
- Ground rod + clamp: $35
- Misc breakers, connectors, wire: $150

Labor: 8 hours at $135/hour
Permit: $175
Inspection fee: $75

Include note that all work meets NEC 2023 requirements.
Estimate valid for 30 days.

AI generates a clean, itemized estimate that looks like it came from a $200/month software system — for free.

✅ Quick Check: You get a call for a water heater replacement. Instead of writing the estimate from scratch, you ask AI to modify your last water heater estimate with the new customer info, updated prices, and a different model. This takes 2 minutes. What’s the underlying technique? (Answer: Template reuse. Ask AI to “use the same format as the last estimate but change the customer to [X], the unit to [Y], and update the price to [Z].” Most of your jobs fall into 5-10 categories. Create one AI-generated template per category, then modify it for each new job.)

Material Takeoffs with AI

For larger jobs, AI can calculate material lists from a description:

I need a material takeoff for a bathroom remodel plumbing rough-in:
- Relocating toilet 3 feet to the left
- New vanity with single sink (replacing pedestal)
- New bathtub/shower combo replacing existing tub
- All new supply and drain lines in the walls

Existing: copper supply, cast iron drain
New: PEX supply, PVC drain

List all materials needed with typical quantities.
Include fittings, hangers, and connectors.
Don't include fixtures (customer is providing those).

AI generates a comprehensive material list. You adjust based on what you see on-site — because AI doesn’t know the crawl space is 18 inches or the existing cleanout is corroded.

Dedicated Estimation Software

For contractors who bid regularly, dedicated AI estimation tools go further:

These tools are worth evaluating if you’re doing 5+ bids per week. For occasional bidding, ChatGPT/Claude with good prompts is plenty.

✅ Quick Check: AI generates a material list that includes 12 outlets for a kitchen remodel. You know from the site visit that 3 of those locations have existing circuits that just need new receptacles, not full runs. What do you do? (Answer: Adjust the list — remove the wire and boxes for those 3 locations, keep the receptacles. AI estimates from the general scope; you adjust from site-specific knowledge. This is the 80/20 pattern: AI handles 80% of the calculation, you fine-tune the remaining 20% based on what you actually saw.)

Pricing Strategy with AI

AI can also help you price competitively:

I'm an electrician in [your city]. I need to price a 200-amp
panel upgrade. My material cost is $1,105. Labor is 8 hours.

What's the typical total price range for this job in my area?
What markup percentage should I use on materials?
What factors should I consider for pricing above or below average?

AI gives you market context — but you set your price based on your overhead, experience, and business goals.

Practice Exercise

1. Take your most common job type (water heater, panel upgrade, fixture install, etc.)
2. Write an estimation prompt with all the details
3. Generate the estimate with ChatGPT or Claude
4. Compare it to your last manual estimate — is anything missing? Is the format better?

Key Takeaways

• AI turns 45-minute estimates into 5-minute estimates with professional formatting
• The key to good AI estimates: provide specific details (scope, materials, prices, labor, extras)
• AI handles 80% of material lists — you adjust the remaining 20% based on site conditions
• Template reuse: create one AI estimate per job category, then modify for each new customer
• More bids = more wins — contractors using AI report 3-5x increase in bid volume
• Dedicated tools (Beam AI, CountBricks) are worth it for high-volume bidders

Up Next

In the next lesson, you’ll learn how to use AI for troubleshooting — narrowing down problems before you roll the truck, and having diagnostic references at your fingertips on the job site.