How to quote a job: a tradie's step-by-step guide

To quote a job, a tradie works out their charge-out rate (real costs plus profit, divided by billable hours), prices the labour and materials for the job, adds a markup, and sends a written, GST-clear quote. A quote is binding once accepted, so price it for profit, not just to win.

Quote or estimate? Know the difference before you write the number down

A quote is a fixed price you are committing to; an estimate is your best guess, and mixing them up is where tradies lose money before the job even starts. business.gov.au puts it plainly: once a customer accepts your quote, it becomes a legally binding contract. Write "quote" on a number you were not sure about, and you can be locked into finishing a job at a loss.

The practical rule: if you genuinely cannot see the full scope yet (who knows what is under that slab), call it an estimate or quote a range, and say what would change the price. Most blokes lose money here, not on the tools. We break down the legal side properly in quote vs estimate: what's the difference in Australia.

Work out your charge-out rate (the number most tradies guess)

Your charge-out rate is what an hour of your time has to earn to cover everything the business costs and still leave a profit, and most tradies have never actually calculated it. The method: add up what a year really costs you (the take-home pay you want, super, insurance, vehicle, tools, fuel, accounting), then divide by the hours you can actually bill.

That second part is the trap. A 38-hour week looks like nearly 2,000 hours a year, but leave, sick days, public holidays, quoting, invoicing and driving between jobs eat it down to roughly 1,400 to 1,800 billable hours for most. Divide by the wrong number and you undercharge on every single job without ever noticing. business.gov.au's pricing guidance backs the same cost-plus logic. We have a full walkthrough with the worked maths in how to work out your charge-out rate.

Markup vs margin (the mistake that quietly eats your year)

Markup and margin are not the same thing, and confusing them costs real money. Markup is what you add to your cost: a 25% markup on $100 of materials makes the price $125. Margin is the slice of the final price that is profit: that same $125 sale with $100 of cost is a 20% margin, not 25%.

Same numbers, different answer. If you decide "I want 25% profit" and apply it as markup, you end up with less margin than you planned, on every job, all year. The practical fix: set your markup on materials and your charge-out rate on labour separately, and know which number you are talking about when you check the year's result.

Itemised or lump sum? When to use each

Itemised quotes list every line (labour, materials, each stage); lump sum quotes give one total, and each earns its keep in different jobs.

Either way, write down what is and is not included. The "while you're here, could you just..." request is only a paid variation if your quote drew the boundary. If it is silent, that extra work becomes a freebie you resent.

What has to be on the quote (so it holds up)

A quote that holds up in a dispute is specific, complete and clear about GST. The business.gov.au checklist is the standard:

• Your business name and ABN
• The client's details
• A clear description of the work
• Itemised costs and the total
• GST, if you are registered
• Any variations discussed
• Payment terms and method
• Start and finish dates
• An expiry date
• Space for the client to accept

Whether GST belongs on there depends on whether you are registered for GST ($75,000 turnover threshold, per the ATO, current June 2026). And the ACCC's pricing rules require the total price to be clear and include unavoidable costs, so no surprise add-ons after acceptance. Once the quote is built you have to actually send it; Chippie does quote-to-invoice on the free tier, from your phone, with line items that carry straight through to the invoice.

Send it, then follow up (a quote sitting in drafts wins nothing)

Send the written quote the same day if you can, while the client still remembers your face and the conversation. Put an expiry date on it so old prices cannot come back to bite you in six months. Then follow up once, a few days later, with a short and friendly message. No tricks; most jobs are won by the tradie who quoted fast and followed up once, because half the competition never sent theirs.

And once the job is done, the same discipline applies to getting the invoice out and chasing it if it goes quiet.

FAQ

Is a quote legally binding in Australia? Yes, once the customer accepts it, a quote becomes a legally binding contract, per business.gov.au. That is why the price and the scope need to be right before you send it.

What is the difference between a quote and an estimate? A quote is a fixed price you commit to. An estimate is your best guess and a guide, not a committed price. Use an estimate when the scope is genuinely uncertain.

How much markup should a tradie add? There is no single right number; it depends on your costs and your market. What matters is knowing the difference between markup and margin, and checking your charge-out rate covers everything before markup even starts.

Do I have to put GST on my quote? Only if you are registered for GST. Registration is required once turnover hits $75,000. If registered, show GST clearly so the total is what the client actually pays.

Should I quote itemised or as a lump sum? Itemise when the client is price-sensitive or the job has clear stages. Lump sum suits small, well-understood jobs. Always spell out inclusions and exclusions either way.

When the numbers are worked out, the sending should be the easy part. Chippie turns a quote into an invoice in a couple of taps, free for one user on the free tier.