Remodels carry the most moving parts: multiple subcontractors, allowances, a longer schedule, and near-certain change orders. Profit depends less on any single line and more on coordinating cost and protecting margin through changes.
What drives cost in a remodel
- Subcontractors: electrical, plumbing, HVAC, and specialty trades, each with their own markup and schedule.
- Allowances: owner-selected finishes carried as allowances, reconciled against actual selections.
- Contingency: a visible, separate line for the unknowns behind walls.
- Change orders: priced and approved separately so added scope does not erode the base margin.
- Longer-schedule overhead: more weeks on site means more overhead exposure per job.
Worked example
Subcontractors $8,000, materials $6,500, labor 120 hours at $40 ($4,800), permits $450, and a separate $1,200 contingency give a direct cost of $20,950. A 10% overhead allocation adds $2,095 for a total of $23,045. Priced for a 22% margin, the remodel quotes at $29,544.87, an estimated profit of $6,499.87 — before any change orders, which are priced on their own.
Pre-quote checklist
- Sub quotes confirmed and scheduled.
- Allowances written with reconciliation terms.
- Contingency shown as a separate, visible line.
- Change-order procedure agreed in the contract.
- Permit, inspection, and schedule impact on overhead.
Frequently asked questions
How do I price a remodel?
Coordinate subcontractor quotes, materials, burdened labor, permits, and a separate contingency, add overhead, then price for a target margin.
How should change orders be handled?
Priced and approved separately from the base contract so added scope does not erode the original margin.
What is contingency and where does it go?
A visible, separate line for the unknowns behind walls, kept apart so it can be reviewed against what was actually spent.
What to do next
The MarginJob calculators use the same profit method for every trade. This page adds the cost lines and checks that matter for this specific type of work. Planning estimates only; verify quantities, codes, and pricing with current project documents.