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Construction contract documents and floor plan with a hard hat

Writing exclusions and clarifications that protect your margin

Bidding · 5 min read

A subcontractor's quote is more than a number. It's a statement of what that number covers. When the scope isn't written down, the general contractor fills the gaps in their favor, and those gaps get paid for out of your profit.

Inclusions: say what you are pricing

List the drawings, specification sections and addenda your price is based on. Then summarise the work included in plain terms. If a dispute comes up months later, this is the first thing everyone will look at.

Exclusions: say what you are not pricing

Exclusions should be specific to the job, not a copied list of fifty items. Good exclusions are clear enough that the GC can price the work elsewhere. Typical ones include:

  • Permits, fees and third-party testing, unless specifically included
  • Work by other trades, such as patching and painting after your installation
  • Bonds and insurance above your standard limits
  • Overtime, night or weekend work
  • Items shown "by others" or "NIC" on the drawings

Clarifications: state your assumptions

Where the drawings are unclear, write down how you priced it. For example, "Priced per detail 5/A-501; no fire rating assumed at corridor walls." If the assumption turns out to be wrong, you have a clear basis for a change order instead of an argument.

Keep it short and readable

A one-page scope letter that a project manager actually reads protects you better than three pages nobody opens. Group items under clear headings, use the same terms as the drawings, and put the most costly exclusions near the top.

Price validity

Material prices move. State how long your quote is valid, typically 30 days, and whether any materials are subject to escalation. This matters most on projects that may not start for months after bid day.

We include a scope summary with every estimate, listing inclusions, exclusions and assumptions, so you can turn it into your own proposal in minutes.

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