Try this:
;WITH items AS (
SELECT EstimateItemID, ItemType
, 0 AS Level
, CAST(EstimateItemID AS VARCHAR(255)) AS Path
FROM EstimateItem
WHERE ParentEstimateItemID IS NULL AND EstimateID = @EstimateID
UNION ALL
SELECT i.EstimateItemID, i.ItemType
, Level + 1
, CAST(Path + '.' + CAST(i.EstimateItemID AS VARCHAR(255)) AS VARCHAR(255))
FROM EstimateItem i
INNER JOIN items itms ON itms.EstimateItemID = i.ParentEstimateItemID
)
SELECT * FROM items ORDER BY Path
With Path
– rows a sorted by parents nodes
If you want sort childnodes by ItemType
for each level, than you can play with Level
and SUBSTRING
of Path
column….
Here SQLFiddle with sample of data