How to Price a Kitchen Remodel Job

A kitchen remodel quote should cover seven scope buckets: cabinets, counters, appliances, plumbing, electrical, flooring, and finishes. Each bucket gets a scope line and an allowance number or specific SKU. Cabinets are the single biggest line, typically 30 to 40% of direct cost. Counters run 8 to 14%. Appliances run 8 to 15%. Plumbing scope including rough and trim runs 8 to 12%. Electrical runs 5 to 9%. Flooring runs 6 to 12%. Finishes run 6 to 10%.

Cabinets vary 5x in price between stock and full custom. A $58,000 mid-range Portland kitchen with semi-custom cabinets uses a $14,000 to $18,000 cabinet allowance. Quote cabinets as an allowance unless the client has chosen a brand and SKU. Once chosen, lock the allowance into a real cabinet purchase order. Lead times: semi-custom typically runs 6 to 10 weeks. Full custom runs 12 to 20 weeks.

Counter, appliance, and fixture allowances follow the same pattern as cabinets. List the bucket, list the dollar amount, list what the bucket includes and excludes. For counters, the allowance usually covers material and fabrication. For appliances, the allowance usually covers purchase cost only.

• Cabinet allowance: 30 to 40% of direct cost.
• Counter allowance: 8 to 14%.
• Appliance allowance: 8 to 15%, purchase only.
• Fixture allowance: covers faucet, sink, disposal.

Plumbing and electrical subs should give you fixed-fee scope quotes, not time and materials. A locked plumbing scope at $4,200 stays $4,200 unless a change order moves it. If a sub refuses to give a locked scope, that is a flag. You absorb the risk if the sub runs over.

Carry 10 to 15% contingency on direct cost for older homes built before 1980. Old galvanized water lines, knob-and-tube wiring, asbestos floor tile, lead paint, and rotted subfloor all show up after demo. For newer homes built after 2000, 5 to 8% contingency is usually enough.

Apply combined markup at the total direct cost line, not on each scope line. Worked example: direct cost on a $58,000 kitchen remodel totals $58,000. Apply combined markup of 30%: client price $75,400. The $17,400 difference covers overhead recovery and net profit at the targets you set.