$1,828
Average
$1,650
Low
$1,983
High
$1,225
Verified Floor
33%
Markup
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Cost index by David Olson · reviewed by Leonard "Chuck" Thompson · 2026.Q1
Independent FatBook v3 cost indexVerified permit/source data where availableReviewed by Leonard "Chuck" Thompson
Denver
Analyzing…
Denver sits right at the national average for plumbing, $1,828, but that headline number hides a 33% contractor markup. The floor price is only $1,225. The gap between what most people pay and what the most competitive contractors charge is unusually large here, which means prepared buyers can save substantially.
High-margin market. Denver contractors are averaging 33% above their verified floor price. The gap is $603. Your strongest move: request an itemized line-item breakdown, then compare labor hours and material costs against our benchmark data. The P15 floor of $1,225 represents what 15% of contractors already charge.
Peak-season pricing is in effect. May is high-demand season for Denver plumbing contractors. Crews are booked out and negotiating power shifts to the contractor. Expect quotes at the upper end of the $1,650–$1,983 range. If your timeline allows it, waiting 2–3 months could save you $181–$362 vs. peak pricing. If you must move now, get quotes fast, availability matters more than negotiation in peak season.
Denver homeowners leave an average of $603 on the table. That's the gap between the typical contractor quote ($1,828) and the verified floor ($1,225). Nationally, the average gap is $588. Denver runs above that national average, meaning local contractors have more room in their bids than typical.
Denver falls in the lower half of our pricing index, more affordable than 3 of 5 tracked metros. This keeps baseline costs reasonable, though the 33% markup means contractors are still pricing above their verified floor by $603. In lower-cost markets, the percentage savings often matters more than the dollar amount.
Show the math: how Denver Water Heater Installation numbers are derived Click to expand
Derivation for Denver, Water Heater Installation · cost_index 2026.Q2
Step 1: Craftsman labor hours
BOM hours from Craftsman National Estimator: 2.75 hrs
Step 2: BLS wage × burden
Denver wage from BLS OES: $28.83/hr
Burden rate (FICA + workers' comp + insurance + unemployment): 39.8%
loaded_wage = $28.83 × 1.3981 = $40.31/hr
Step 3: Labor cost
labor = 2.75 hrs × $40.31/hr = $111
Step 4: Materials (PPI-adjusted)
Craftsman material cost × FRED PPI multiplier (1.0828): $954
Materials pass through at cost. PPI multiplier inflation-adjusts the BOM book price to current market.
Step 5: Permit fee
Denver permit office: $35
Verified from permits_compiled.json. City and state fee schedules.
Step 6: Direct cost
direct = labor + materials + permit = $111 + $954 + $35 = $1,100
Step 7: Overhead
NAHB benchmark: 20% of (labor + permit). Materials are pass-through and don't carry overhead.
overhead = ($111 + $35) × 0.20 = $125
Step 8: Cost to deliver
cost_to_deliver = direct + overhead = $1,100 + $125 = $1,225
What it actually costs a contractor to do this job in Denver, before profit.
Step 9: Verified floor
Lowest verified bid in Denver for this scope: $1,225
Floor sits above cost-to-deliver, which is the expected pattern for a fair market.
Step 10: Typical contractor quote
Market average from verified contractor pricing in Denver: $1,828
Step 11: Contractor gross margin
margin = ($1,828 - $1,225) / $1,828 × 100 = 33%
The portion of the typical quote that is not cost-to-deliver. Higher = more room to negotiate.
Step 12: Savings potential
savings = $1,828 - $1,225 = $603
The gap between the typical quote and the verified floor in Denver.
Same v3 BOM applied to every service in every metro. Sources: BLS OES wages, FRED PPI series, Craftsman National Estimator, city permit offices. Updated 2026.Q2. Full methodology →
2026.Q2 Quick Answer
In 2026.Q2, plumbing in Denver averages $1,828, with a typical local range of $1,650 to $1,983. The verified floor is $1,225, so inflated bids may leave about $603 in negotiable savings.
Updated May 2026. Sources: BLS OEWS, FRED PPI, Craftsman labor-hour references, city permit data where available, and FatBook v3 cost-index methodology.
How this number is calculated
TheFatBook models plumbing from Craftsman labor hours, BLS regional wages, burden, PPI-adjusted materials, permit data where available, and contractor overhead benchmarks. Cost index version: 2026.Q2. Updated May 2026.
Data Sources Used On This Page
- Independent FatBook v3 cost index for Plumbing in Denver.
- BLS OEWS wage inputs and FRED PPI material inflation references.
- Craftsman labor-hour references and contractor overhead benchmarks.
- Verified permit/source data from PermitCalculator.com and permits_compiled where available.
Cost-index version: 2026.Q2
Updated: May 2026
Sources: BLS, Craftsman, FRED
Reviewed by: Leonard "Chuck" Thompson
Estimate Scope
What the plumbing in denver benchmark includes.
Included in the benchmark
- Water Heater Installation as the headline cost-index scope
- labor-hour assumptions, regional wage inputs, materials, overhead, and permit data where available
- low, average, high, verified-floor, markup, and savings benchmarks from the FatBook cost index
Not included automatically
- hidden damage, change orders, emergency service premiums, or unusual site access conditions
- contractor financing approval, warranties, provider recommendations, or guaranteed final quotes
- permit rulings for a specific address unless the city permit panel lists verified local data
Denver Service Pricing
| Service | Low | Average | High |
|---|---|---|---|
| Water Heater Installation | $1,650 | $1,828 | $1,983 |
| Tankless Water Heater | $983 | $1,089 | $1,181 |
| Plumbing Repairs | $194 | $215 | $233 |
| Hot Water Dispenser Installation | $1,009 | $1,118 | $1,212 |
| Water Pipe Replacement | $1,848 | $2,046 | $2,220 |
| Drain Pipe Replacement | $1,312 | $1,453 | $1,576 |
| Laundry Tub Installation | $386 | $428 | $464 |
| Water Softener Installation | $1,541 | $1,707 | $1,851 |
| Sump Pump Installation | $868 | $961 | $1,042 |
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Permit Information
Denver permits.
Structure
Denver uses same valuation-based fee formula for ALL trade permits (building, plumbing, electrical, HVAC). Plan review is 50% of permit fee for projects over $2,000. Quick permits (water heaters, roof coverings, light fixtures) have no plan review fee.
Department
Community Planning and Development (CPD)
Phone
311 (local) or (720) 913-1311 (outside Denver)
Official Source
Verified
2026-03-23
Fee Anchors
$8k building fee: $83
$12k building fee: $115
$25k building fee: $219
Electrical base: $43
Plumbing base: $43
HVAC base: $83
$12k building fee: $115
$25k building fee: $219
Electrical base: $43
Plumbing base: $43
HVAC base: $83
Source-backed permit facts from PermitCalculator.com and the underlying permits_compiled dataset. Always confirm final requirements with the local building department before filing.
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Cost index built by David Olson, Founder of TheFatBook · Methodology reviewed by Leonard "Chuck" Thompson, LC Thompson Construction Co. · 2026.Q1