Pricing, estimates and getting paid

Pricing a trade job means turning your costs into a number the customer approves before you start. Every price in these guides is built the same way: task hours times your cost per billable hour (the loaded wage plus truck and overhead, not the wage alone), plus parts, permits and equipment, divided by one minus the margin you need. Flat-rate prices fix that sum in advance for repeatable work; time and materials bills it afterwards for work you can't scope. Getting paid is the second half: a clear estimate or proposal, a deposit where the job and your state allow it, payment terms written on the quote, an invoice the customer can pay in one tap, and a plan for the invoices that go unpaid.

34 guides in this topic

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  1. Flat Rate vs Time and Materials Pricing for Contractors: Which to Use and How to Build a Flat RateFlat rate vs time and materials for HVAC, plumbing and electrical shops: how each works, how to build a flat-rate price step by step, and w…
  2. Job Costing for Contractors: How to Find Your Profit per Job (With a Worked Example)Job costing for HVAC, plumbing and electrical contractors: loaded labor rate, parts, overhead per hour, margin vs markup, a worked example …
  3. How Much to Charge for a Service Call: Trip Charges and Diagnostic Fees for HVAC and PlumbingTypical 2026 service call, trip charge and diagnostic fee ranges for HVAC and plumbing, how to work out your own number, and what to say on…
  4. Good Better Best Pricing for HVAC and Plumbing Quotes: How to Build and Present Three OptionsHow good, better, best pricing works on HVAC, plumbing and electrical quotes: why three options sell, how to build them, sample option sets…
  5. Contractor Payment Terms: Examples by Job TypeContractor payment terms by job type: due on receipt vs net 30, progress payment schedules, wording to paste, and state rules on down payme…

Why does every price start from your cost per billable hour?

Because paid hours aren't billable hours: our plumbing price book guide cites ServiceTitan putting billable time at only 40% to 50% of a plumber's workday. Divide by one minus the margin, not by a markup: a 50% markup is only a 33% margin, as flat rate vs time and materials and job costing for contractors both show. How to price electrical work explains why a published $90 hour can lose money, and HVAC flat rate pricing works the formula from a $29.33 median wage to a $239 billable rate and a $900 blower motor job. Work your own numbers with the labor rate calculator, markup vs margin calculator, flat-rate price calculator and job profit calculator.

What should you charge before anyone sees the problem?

The service call fee is the first price a caller hears. Per our service call guide, HVAC diagnostics run about $70 to $200 ($89 is common) and plumbing trip charges about $75 to $100, with after-hours calls at 1.5× to 2×. Once you're on site, good, better, best options turn yes-or-no into which-one. And prices have to move with costs: in how to raise prices, a 6% increase lifts net margin from 6.4% to 11.7%.

How do you price HVAC installs and maintenance plans?

Installs add a sales commission to the divisor: price = total cost ÷ (1 − net margin − commission). The worked examples cover AC installation, furnace installation and heat pump installation; none of them promises the 25C credit, which ended with 2025 installs. Size first with the BTU calculator. Duct cleaning is priced per system, not per vent. For recurring revenue, price maintenance plans from the cost of one visit (typical plans sell for $150 to $250 a year per system), sell them on every eligible call and put the terms in an HVAC service agreement. The maintenance agreement price calculator runs the visit math.

How do you price plumbing and drain work?

Drain work carries a per-use charge for the jetter or camera, and access changes the time; see drain cleaning pricing. Bigger jobs use a project crew rate ($177.13 per crew hour for a plumber and helper in our examples): a repipe is priced per fixture connection, and sewer line replacement is quoted from the camera footage, per foot. Size water heaters with the water heater size calculator.

How do you price electrical and roofing jobs?

Our electrical examples use $115.27 per billable hour and a 20% margin. Panel upgrades start with a load calculation and add the 2023 NEC's outdoor emergency disconnect and surge protection; EV chargers are sized at 125% of the charger's continuous current and priced by run length; standby generators add the plumber's gas line and permits. The wire size and voltage drop calculators help on long runs. Roofers price by the square: estimating a roofing job multiplies plan area by the pitch factor (1.118 for a 6/12 roof) and adds 10% to 15% waste; the roofing calculator does the measuring.

What paperwork gets a job approved?

A contractor proposal restates the problem, gives two or three priced options and ends with one way to approve. Copy the plumbing estimate template or electrical estimate template, or build one with the estimate generator. Roofers need the clauses in a roofing contract template, including per-sheet decking prices. Promise only what you'll fix in a workmanship warranty. If you offer customer financing, the dealer fee comes off what the lender pays you; CrewRobin doesn't offer financing.

How do you get paid on time, and what if you aren't?

Set the deposit by job and state (California caps home improvement deposits at 10% or $1,000, whichever is less) and write payment terms on the quote and the invoice. What to include on a contractor invoice and the HVAC invoice template cover the lines; the invoice generator fills them in. When a bill goes unpaid, collecting unpaid invoices runs from a due-date reminder to a demand at day 30, and a mechanics lien clock that runs from completion, not the invoice date: 90 days for a California direct contractor.

Worked prices from our guides (each guide's own cost assumptions; your costs and market decide yours)
JobWorked exampleCost → priceGuide
Service callHVAC diagnostic / plumbing trip charge$70–$200 ($89 common) / $75–$100 typicalService call fees
AC installation3-ton AC and coil on an existing furnace, 20% net, 5% commission$6,255 → about $8,345AC install
Furnace installation80% to 96% furnace with a water heater chimney liner$5,630 → about $7,510Furnace install
Heat pump installation3-ton changeout, 20% net, 5% commission$8,245 → about $10,995Heat pump install
Duct cleaningOne system, 3 hours, two people, $95/hour, 30% marginAbout $940Duct cleaning
Drain cleaning1.5-hour main line clear from a cleanout, $174.20/hour, 30% marginAbout $425Drain cleaning
RepipeTwo-bath, 13-fixture PEX repipe, 30% margin$4,884.08 → about $6,980 (about $537 a fixture); about $11,145 in copperRepipe
Sewer line60-foot open-trench lateral, 30% margin$5,180.58 → about $7,405 ($123 a foot)Sewer line
GFCI swapOne GFCI, 20% margin$141 → about $177Electrical work
Panel upgrade100A to 200A service upgradeAbout $4,795Panel upgrade
EV charger25-foot / 60-foot garage run, before the charger, 20% marginAbout $989 / about $1,846EV charger
Standby generator22 kW install, 20% margin$9,674.86 → about $12,095Generator
HVAC maintenance planTwo visits a year per systemAbout $150–$250 a year, or $15–$30 a month (typical)Maintenance plans

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Frequently asked questions

How do contractors calculate a price for a job?

Start from your billable hourly cost (wages, burden, trucks and overhead divided by billable hours), add parts at your markup, then check the result against the gross margin you need. Flat-rate prices are that sum fixed in advance for a defined task.

Is flat rate or time and materials better for contractors?

Flat rate suits repeatable service work because the customer approves a price before you start and fast technicians earn more. Time and materials fits work you can't scope until it's open. Many shops use both.

How much deposit can a contractor ask for?

It depends on the job and the state: some states cap home-improvement deposits, so check your state's contractor rules before you set a policy. Deposits are most common on installs and custom-ordered equipment.

What should be on a contractor invoice?

Your business name and license number where required, the customer and job address, the date, an itemised list of labor and materials, taxes, the total, payment terms and the ways to pay.

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