The paperwork that keeps a remodel profitable
Remodelers rarely lose money on the work itself. They lose it on the stuff around the work: allowances that were set too low to win the job, selections made three weeks late, verbal changes nobody priced, draws that fall behind the work, and a final payment held hostage over a paint touch-up. This toolkit is five linked tabs that handle exactly those problems, from the kitchen-table estimate to the warranty handoff.
1. Estimate & Contract Summary
List the scope one line at a time with a price for each, then let the workbook add the allowances total from the selections tab to get the contract price. It calculates the deposit from the percentage you set and carries the markup you charge on allowance overages. Below the numbers are plain-language sections for allowances, exclusions (hidden conditions, abatement, engineering, appliances, service upgrades), change order terms and warranty.
Write your own wording — and have it reviewed. Many states set specific requirements for home-improvement contracts: required contract terms, your license number, deposit limits, cancellation and lien notices, even minimum type sizes. California, for example, limits the down payment on most home-improvement contracts to $1,000 or 10% of the contract price, whichever is less. When a contract is signed in the homeowner's home, the federal FTC Cooling-Off Rule can give the buyer three business days to cancel. Check your state's rules and have an attorney licensed there review your contract.
2. Homeowner Selections
One row per allowance item: room, item, allowance, the product or finish chosen, supplier or model number, and actual cost. The sheet calculates the over/(under) allowance and the bill/(credit) — overages carry your markup, under-runs credit at cost. Each item has a decision-due date; the due flag turns red when a selection is overdue and amber inside seven days.
Set each due date by working back from the install date: install date minus supplier lead time minus a week of cushion. Cabinets and special-order tile commonly run four to ten weeks. A late selection on paper is a late job in the field.
3. Draw Schedule
The deposit line pulls from the contract. Set the remaining milestones so they total 100% — the sheet checks it. Each draw has a trigger describing what must be complete and inspected, invoice and paid dates, amount paid, a running balance and a status (Scheduled, Invoiced, Partial, Paid). Change orders and allowance adjustments get their own line so the adjusted contract always ties out.
- Tie draws to visible, inspected work — not calendar dates.
- Collect each draw before starting the next phase. If you finish drywall before the rough-in draw clears, you're financing the homeowner's kitchen.
- Know your state's preliminary notice and mechanic's lien deadlines before you need them.
4. Change Order
A one-page homeowner change order: CO number, reason (homeowner request, hidden condition, inspector requirement, allowance overage, design change), a description, line-item pricing with overhead and profit, schedule impact in working days, and the new contract sum. Copy the tab for each change. For hidden conditions, take photos before you close anything in and reference them on the form. For a commercial-style change order log, see the change order template.
5. Final Walkthrough & Warranty
A room-by-room checklist — kitchen, bathrooms, electrical, plumbing and HVAC, finishes, site and closeout — with OK / Punch / N/A for each line, a punch note, who's responsible and the date closed. The counts at the bottom show how many punch items are still open. Enter the substantial completion date and warranty term and the sheet calculates when the workmanship warranty expires. A manufacturer-warranty table tracks registration and whether the paperwork went in the homeowner's binder. For larger punch lists, use the punch list template.
Pricing so the overhead gets paid
Residential margins get squeezed from both sides — homeowners compare bids line by line, and small jobs carry a lot of overhead per dollar. Know the markup you actually need: the markup vs. margin calculator converts between the two, and a 20% markup is only a 16.7% margin. If you're doing deck or structural work, the IRC deck framing chart is a handy reference.
Related templates
- Change order template
- Punch list template
- Project closeout checklist
- Progress photo log — document hidden conditions
- Lien waiver template
- Browse all free construction templates
From spreadsheet to phone
Spreadsheets work until the homeowner texts a selection change at 9 p.m. and the crew is working off last week's version. Field PM keeps change orders, photos, daily logs and budgets in one place your crew and office both see.Start a free 30-day trial — no credit card required.
This toolkit is a management tool, not legal advice. Contract requirements vary by state.
