How to Quote Demolition Jobs

Why demolition quoting is different from other trades

Demolition looks straightforward from the outside: knock it down, cart it away. In practice, demolition quoting carries more hidden cost traps than almost any other trade. Asbestos that was not identified during the quote adds thousands. Waste disposal costs swing by a factor of four depending on how well you separate materials. Service disconnections that were supposed to take a week take three. And a machine bogged on a tight site burns hours you quoted as minutes.

The demolition market in Australia is competitive, and residential clients often collect two to four quotes. A lump-sum number with no breakdown loses to a clear itemised quote that shows the client exactly where their money goes: labour, machine hire, waste disposal, asbestos management, council fees, and service disconnections. Transparency builds trust, reduces disputes, and lets you justify the price when a competitor underquotes by forgetting the tip fees.

This guide covers each part of the demolition quote with 2026 Australian benchmarks so you can price accurately, account for every cost, and present a proposal that converts.

Step 1: Calculate your true cost per day

Before pricing any demolition job, work out what a day of work actually costs your business. Demolition contractors typically price by the job, but you need to know your daily cost to set margins that keep the business healthy.

For a sole-operator demolition contractor, total annual overheads typically land between $118,000 and $206,000. At around 220 billable days per year, your loaded cost per day sits between $540 and $940. If you run a labourer alongside you, add $280 to $400 per day for their wages, super, and workers comp.

Demolition carries higher insurance premiums than most trades. Public liability for demolition work typically runs $4,000 to $10,000 per year depending on turnover and claims history. Workers compensation rates for demolition are among the highest in construction because of the physical nature of the work and the hazardous materials exposure.

If you own your own excavator, factor in finance repayments, depreciation, servicing, and attachment costs. If you hire machines, those costs go directly into each job quote rather than your annual overheads.

Step 2: Inspect the site before you quote

Quoting demolition from photos or a phone conversation is the fastest way to lose money. A site inspection before quoting is standard practice and catches the cost factors that photographs miss.

What to assess on site

• Structure type and size: weatherboard, brick veneer, double brick, concrete slab, steel frame. Each demolishes differently and produces different waste volumes. Measure or confirm the floor area in square metres.
• Asbestos indicators: any structure built before 1990 is likely to contain asbestos. Fibro sheeting (eaves, walls, wet areas), vinyl floor tiles, pipe lagging, and textured coatings are common locations. Note suspected areas for the asbestos surveyor.
• Site access: can an excavator get to the structure? Is there room for a skip bin or tipper? Narrow driveways, overhead wires, retaining walls, and neighbouring buildings close to the boundary all restrict machine access and add time.
• Services: identify water, gas, electricity, telecommunications, and stormwater connections. All must be disconnected before demolition begins. Note the meter locations and any underground service indicators.
• Neighbouring structures: shared walls, party fences, overhanging trees, and structures within the vibration zone all need protection measures. Dilapidation reports for neighbouring properties cost $500 to $1,500 each but prevent disputes.
• Council requirements: check whether a Development Application, Complying Development Certificate, or demolition permit is required. Most full house demolitions require at least a council notification and sometimes a full DA.
• Salvage opportunities: hardwood framing, architectural features, bricks, and metal all have salvage value. Estimate what can be recovered and offset against disposal costs.

Take photos of every relevant detail during the inspection. A thorough 30-minute site visit saves hours of back-and-forth and prevents costly surprises once the machines arrive.

Step 3: Price the demolition scope

Demolition pricing varies widely by job type. These 2026 Australian benchmarks give you a starting point. Adjust for your region, access conditions, and waste disposal costs.

Full house demolition

These ranges include basic demolition, loading, and cartage to tip but exclude asbestos removal, service disconnections, and council fees. A full house demolition with asbestos, service disconnection, and all council requirements typically totals $17,000 to $35,000 for a standard three-bedroom home, with complex sites reaching $50,000 or more.

Partial demolition and strip-outs

Strip-out work is labour-intensive and produces less waste volume than a full house demolition, so margins are often higher. Many demolition contractors build their businesses on high-volume strip-out work while full house demolitions provide the larger individual jobs.

Pool demolition

Partial pool demolition (punching holes in the shell, backfilling with crushed concrete) is cheaper but may limit future use of the site. Full removal is required if the client plans to build over the area. Fibreglass pools must come out whole, which needs a crane or excavator with reach and clear access. Add $1,500 to $3,500 for a geotechnical report if the client intends to build on the filled site.

Step 4: Price machine and equipment hire

Machine costs are a major component of every demolition quote. Whether you own your equipment or hire it in, these costs need to be visible in your pricing.

Excavator hire rates (wet hire, with operator)

Other equipment costs

If you own your machines, calculate an internal hire rate that covers finance, depreciation, fuel, and servicing. Charge this rate to each job the same way you would charge an external hire. This keeps your job costing accurate and builds a maintenance reserve.

Mobilisation and demobilisation (floating the machine to and from site) is a real cost. A low-loader to move a 13-tonne excavator across a metro area runs $300 to $800 each way. Include it in the quote or absorb it into your margin calculation, but account for it either way.

Step 5: Calculate waste disposal costs

Waste disposal is often the most underquoted cost in demolition. Metropolitan tip fees in NSW alone include a landfill levy of $174.20 per tonne (2025-26), which pushes mixed waste disposal to $300 to $390 per tonne at Sydney metro tips. Separating materials on site is the single biggest lever you have to reduce disposal costs.

Disposal costs by material type

Estimating waste volumes

A standard three-bedroom brick veneer home (150m2) produces approximately 80 to 120 tonnes of demolition waste. A weatherboard home of the same size produces roughly 40 to 70 tonnes. Strip-outs generate far less: a bathroom strip produces 1 to 3 tonnes, a kitchen strip 2 to 5 tonnes.

Sorting on site into concrete, timber, metal, and general waste can reduce your disposal bill by 30 to 50 percent compared to sending everything to landfill as mixed waste. The time spent sorting is almost always recovered in tip fee savings. If your site has room for multiple skip bins or stockpiles, sort from the start.

Tip fees vary significantly by state and by distance from metro areas. Regional tips are often half the cost of metropolitan facilities. Always confirm current rates with your local tip or waste facility before finalising a quote, as levies increase annually.

Step 6: Account for asbestos and hazardous materials

Asbestos is the single biggest variable in Australian demolition quoting. Any structure built before 1990 is likely to contain asbestos-containing materials (ACMs). Many homes built between 1940 and 1987 used asbestos cement sheeting (fibro) extensively in walls, eaves, wet areas, and roofing. Even homes built in the 1990s may contain asbestos in older materials reused during construction.

Pre-demolition asbestos survey

A pre-demolition asbestos survey by a NATA-accredited assessor is legally required before demolishing any structure built before 2004 in most states. The survey identifies the location, type, and condition of ACMs and determines whether removal requires a Class A (friable) or Class B (non-friable) licensed removalist.

Asbestos removal costs

Most residential asbestos removal jobs carry a minimum charge of $1,500 to $2,000 regardless of area. A full fibro house (walls and eaves) can cost $5,000 to $20,000 for asbestos removal alone, depending on the area and condition of the material.

What this means for your quote

If asbestos is suspected but not yet surveyed, quote two scenarios: one with asbestos removal and one without. State clearly that the final price depends on the survey result. This protects your margin and gives the client realistic expectations. Alternatively, include the survey cost in your quote and adjust the final price after the results come back.

If you hold a Class B asbestos removal licence, you can remove non-friable asbestos yourself and keep that margin in-house. If you subcontract the removal, get a fixed quote from the removalist before finalising your price to the client.

Other hazardous materials

Beyond asbestos, older buildings may contain lead paint, synthetic mineral fibres (SMF), polychlorinated biphenyls (PCBs in old electrical equipment), and contaminated soil. Each requires assessment and may add to disposal costs. Note any suspected hazardous materials during your site inspection and include a contingency or exclusion in your quote.

Step 7: Meet the regulatory requirements

Demolition in Australia is one of the most regulated construction activities. Getting the approvals right before quoting prevents delays that eat into your margin and keeps you on the right side of SafeWork inspectors.

Demolition licensing by state

In NSW, a restricted demolition licence (DE2) covers structures up to a certain height and complexity, while an unrestricted licence (DE1) covers all demolition work. Other states have similar tiered systems. Check your state's specific requirements, as penalties for unlicensed demolition are severe.

AS 2601: The Demolition of Structures

All demolition work in Australia must comply with AS 2601. This standard requires a written demolition work plan that covers the sequence of demolition, structural stability at each stage, hazard identification, plant and equipment requirements, traffic management, and waste disposal. A copy of AS 2601 and the work plan must be kept on site during demolition.

Council approvals

Most full house demolitions require council approval, either through a Development Application (DA) or a Complying Development Certificate (CDC) issued by a private certifier. CDCs are faster (typically 10 to 15 business days) but only available for straightforward demolitions that meet specific criteria. Heritage-listed properties, flood-prone land, and sites near significant trees usually require a full DA (6 to 12 weeks).

Council fees for demolition approvals range from $200 to $1,500 depending on the council and the type of approval. Include these in your quote or note them as a client cost.

Service disconnections

All services must be disconnected and capped before demolition begins. This is a legal requirement and a safety necessity.

Telecommunications disconnection is often the slowest. NBN and Telstra can take two to three weeks, and delays here push back your entire program. Start the disconnection requests as soon as the client commits to proceeding. Include the cost in your quote or list it clearly as a client responsibility.

Worked example: full house demolition quote

Here is a sample quote breakdown for a common residential demolition job in a Sydney metro suburb.

The job

Single-storey brick veneer home, 160m2, on a 500m2 block in western Sydney. Built 1978. Asbestos survey confirms non-friable asbestos in eaves and wet area walls (estimated 45m2). Standard driveway access, clear block, no heritage overlay. Concrete slab to remain.

This works out to approximately $162 per square metre (ex GST) for the building area, or $178 per square metre inc GST. The asbestos removal alone adds roughly $16 per square metre to the job. Without asbestos, the same job would quote around $24,800 inc GST.

The 25% gross margin ($6,477 on $25,907 ex GST revenue) is the profit before your annual overhead allocation. If your annual overheads are $160,000 and you complete 30 full-house demolitions per year alongside strip-out work, each house demo needs to carry roughly $3,500 to $4,000 of overhead contribution to break even.

Step 8: Present the quote professionally

A demolition quote that wins work shows the client exactly what they are paying for. Lump-sum quotes invite suspicion. Itemised quotes build trust.

What to include in every demolition quote

• Scope of work. What gets demolished, what stays. Be specific: "demolish single-storey brick veneer dwelling, remove all above-ground structure, leave slab in place, remove all debris from site." Exclude anything you are not doing (slab removal, tree removal, fencing) in writing.
• Asbestos. State whether the quote includes asbestos removal, the type and area, and the survey result it is based on. If no survey has been done, note it as a provisional sum or quote two scenarios.
• Machine and labour. List the machines you will use and the crew size. Clients understand that bigger jobs need bigger machines, and seeing "8-tonne excavator, 2.5 days" justifies the cost better than a single line item.
• Waste disposal. Break out waste types and volumes. Showing "70 tonnes concrete to recycler at $70/t" demonstrates transparency and proves you are not overcharging on disposal.
• Service disconnections. State which services will be disconnected and whether the cost is included or is the client's responsibility. Specify lead times so the client understands the timeline.
• Council approvals. State whether you will arrange the approval or the client will, and the expected timeframe.
• Timeline. Provide an estimated start date (subject to service disconnections and council approval) and duration on site. Most standard house demolitions take 2 to 4 days on site plus 1 to 2 days for clean-up and site levelling.
• Exclusions. List what is not included. Common exclusions: slab removal, tree removal, retaining wall work, soil testing, contaminated soil remediation, rock removal below slab level.
• Payment terms. A deposit (typically 10-20%) on acceptance, progress payment at demolition completion, and final payment after site clearance and handover.
• Validity. Set a 14 to 30 day quote validity. Tip fees and machine hire rates change, and you do not want to honour a quote from three months ago at today's costs.
• Your licence and insurance. Include your demolition licence number, asbestos licence number (if applicable), public liability insurance certificate, and ABN. These are trust signals that separate licensed operators from unlicensed cowboys.

Timing and follow-up

Send the quote within 48 hours of the site inspection. Residential clients compare quotes and remember the contractor who responded promptly. Follow up within a week. Ask whether they have questions about the asbestos component or the timeline rather than simply asking if they have decided.

Quoting mistakes that cost demolition contractors money

• Underestimating waste volumes. A brick veneer house produces more waste than most people expect. If you quote for 60 tonnes and the job produces 90, you absorb 30 tonnes of tip fees. Measure the structure, calculate volumes for each material, and add a 10-15% contingency.
• Ignoring the landfill levy. State waste levies add $100 to $175 per tonne on top of the base tipping fee. These levies increase annually. Use current-year rates from your state's EPA or waste authority, and check whether your tip passes the full levy through or absorbs part of it.
• Quoting without an asbestos survey. Assuming a 1970s house has "a bit of fibro in the eaves" and discovering asbestos in every wall, floor, and ceiling costs thousands. Always recommend a survey before finalising the price, or quote two scenarios with a clear disclaimer.
• Forgetting service disconnection lead times. If you quote a start date without confirming service disconnection timelines, you sit idle with a machine on float waiting for the gas company. Build lead times into your project timeline and make disconnections a pre-condition before your start date is confirmed.
• Not accounting for access. A house in a narrow cul-de-sac with power lines overhead and a shared driveway takes twice as long as an open block. Restricted access means smaller machines, more manual work, and careful manoeuvring. Price the access conditions you saw on site, not an ideal scenario.
• Skipping the dilapidation report. Neighbouring property damage claims after demolition can cost tens of thousands. A dilapidation report ($500 to $1,500 per property) documents the existing condition of neighbouring structures before you start. Include it as an optional line item for tight sites or recommend it to the client in writing.
• Lumping all waste together. Sending everything to the tip as mixed waste at $300+ per tonne when half of it is clean concrete worth $70 per tonne at a recycler. Sort on site, use separate bins, and price each waste stream individually in your quote.
• No contingency for underground surprises. Old septic tanks, buried fuel tanks, undocumented footings, and contaminated soil appear regularly during demolition. A 5-10% contingency allowance or a clearly stated exclusion for underground obstructions protects your margin.

For more on common quoting errors across all trades, see 7 Quoting Mistakes That Cost Tradesmen Money.

How to quote faster without cutting corners

The biggest bottleneck in demolition quoting is translating your site inspection notes into a priced proposal. You walk the site, measure up, photograph the asbestos indicators, check the access, and by the time you get back to the office you have three quotes to build, waste volumes to calculate, and tip fees to look up. By then the next contractor has already sent theirs.

FlowSpec cuts that loop. You speak your line items into your phone while you are still on site: "asbestos removal 45 square metres eaves and wet area walls, 8-tonne excavator two days, 70 tonnes concrete to recycler, 8 tonnes timber to tip, service disconnections four services, CDC application." Your Xero price list fills in the numbers, and the quote lands in Xero as a draft ready to send. A job that used to take 45 minutes at the desk takes 30 seconds on site.

See how it works at FlowSpec, or check pricing ($50/month for your first quoting seat).