Want Better Clients? Stop Writing Free Estimates
Most contractors waste thousands of hours on free estimates they'll never win. Here's your permission to stop that practice today.
Six months ago Mike had an empty schedule.
He'd just turned down a client who balked at his preconstruction fee.
Then turned down another.
His schedule thinned out. His crews were getting nervous.
But he stuck with it. And then something changed.
Word spread that his company wasn't taking just any work.
They had standards. They planned every job down to the last dab of caulk, or they didn't build at all.
Now, six months later, his close rates have doubled. His margins too. Now his best clients are referring their best friends.
The difference? He stopped giving away his expertise for free.
The Hidden Cost of Free Estimates
Every free estimate costs you twice.
First in time - averaging 8-12 hours per bid. Then, in margin - when you’re competing against five other builders, you slash profit just to win work.
Do the math:
Ten to twelve bids per month.
Over one hundred hours of unpaid work.
And you'll win maybe two jobs - usually the ones with razor-thin margins.
This is more than lost time. Every hour is a lost opportunity to build something better.
Because while you're churning out free estimates, the best clients are hiring builders who deliver value first and earn a fee for that expertise.
What Preconstruction Really Means
Tom, a Michigan builder, charges $8,500 for preconstruction. Non-negotiable. His process includes:
Complete architectural plans with specifications
Feasibility studies and value engineering
Material selections down to final finishes
Fixed costs from actual subcontractor bids
Site logistics and critical path scheduling
All permits identified and cleared with local officials
"Clients can take our preconstruction package and shop it around," he says. "Most builders fear that. We encourage it. After they’ve experienced our system, they trust us to deliver. They've seen how we work."
Last year: 11 large-scale projects. All on schedule. Zero litigation. Zero liens.
How to Make the Transition
Start with your next three prospects:
Calculate your true cost per estimate (include everyone's time)
Site visits
Phone consults
Design time
Procuring bids from your vendors and subcontractors
Set your preconstruction fee at 2-3x that cost
Present it as non-negotiable:
This is how we work.
This is what you get.
This is why you need it.
Deliver overwhelming value in return
Document all of it. Create a repeatable system
Expect pushback. Some prospects will walk.
Let them.
They're giving you valuable market feedback: they don't value planning enough to pay for it.
The clients who stay?
They're showing you something more valuable: they care more about getting it right than getting it cheap.
The Real Transformation
Six months after Mike started charging for preconstruction as a service, something unexpected happened.
His company culture transformed.
His design and estimating team took more pride in their work. They stopped rushing. They started innovating. Every project had clear plans, real budgets, and defined timelines before breaking ground.
"The hardest part?" Mike says. "Was believing we were worth it. Once we believed that, everything else fell into place."
Bottom Line
Tomorrow, someone will ask for a “rough estimate” based on some images pulled from the internet.
They seem sincere. Could be a good lead. You never know…
Your schedule has a few gaps. Your overhead is screaming for revenue.
In that moment, remember: Every time you skip preconstruction to win more work, you're compromising your process. And you're compromising your future.
The hard truth is, the best clients don't want the cheapest builder.
They want the one who plans perfectly, executes flawlessly, and delivers:
On time.
On budget.
On promise.
Because that's worth paying for.
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Special thanks to Zac Gudakov on Unsplash for the photo that accompanies this post.
Great article for every contractor large or small.
There are too many variables to offer free estimates for a simple screen room to an entire multi story building.
Explaining to people all of this up front is a respectful approach to show clients you take the job seriously and have a plan right out of the gate.
Hell, I might even go as far as printing this article up and putting it in the email with the pre-construction breakdown email!