How to compare renovation quotes without getting burned
What to look for in a renovation quote in Ontario, why the lowest number is often the most expensive, and questions that separate contractors.
The prices in this guide are rough ranges to help you plan, not quotes. Every house and every set of choices is different. Your price comes from a written quote after we’ve seen the house.
Three quotes for the same renovation can differ by 40 percent. Sometimes one contractor is simply more expensive. More often, the quotes describe three different jobs, and the cheapest one leaves out what the others included.
Here is how to read them side by side.
Make sure they’re pricing the same thing
Before comparing numbers, compare scope. A useful quote lists, room by room or trade by trade, what will be done. If one quote says “bathroom renovation, $28,000” and another lists demolition, waterproofing, tile, plumbing, electrical, fan, vanity, toilet, glass and paint, you can’t compare them until the first one is broken down.
Ask each contractor to price from the same scope document or drawings. If you don’t have drawings, ask them to list their assumptions.
Read the allowances
An allowance is a placeholder amount for something not yet chosen: tile at $8 per square foot, a vanity at $1,500, lighting at $2,000. Allowances are normal and useful. They’re also the most common way a low quote becomes a high final bill.
Line up the allowances in each quote. If one contractor allows $15,000 for kitchen cabinetry and another allows $40,000, the first quote isn’t cheaper. It’s incomplete.
Look for what’s excluded
Good quotes say what isn’t included. Common exclusions:
- Permits and drawings
- Appliances, light fixtures and hardware
- Asbestos testing and removal
- Electrical panel upgrades
- Repairs to anything found behind walls
- Final cleaning and disposal
None of these are wrong to exclude, but they need to be visible so you can budget for them.
Questions that separate contractors
- Who applies for the permit? If the answer is “you don’t need one” for work that clearly does, walk away.
- What happens when you find something unexpected? The right answer: they stop, show you, price it, and wait for your written approval.
- Who is on site every day, and who do I call? A name, not “the team”.
- Which trades are your own, and which are subcontractors? Either is fine. Licensed trades are required by law for electrical and gas work.
- What’s the payment schedule? Payments should follow completed work, not dates on a calendar. A large deposit before anything is ordered is a warning sign.
- What’s the warranty, in writing?
Check the paperwork
Ask for proof of commercial general liability insurance and a WSIB clearance certificate. Without WSIB coverage, you can be exposed if a worker is injured on your property. For new homes, the builder must be licensed by the Home Construction Regulatory Authority; check the licence on the Ontario Builder Directory.
Ontario’s Construction Act also provides for a holdback on payments while lien rights expire. On larger projects, ask how the contract handles it.
When the lowest price is right
Sometimes the lowest quote is from a smaller, well-run contractor with lower overhead, and it’s genuinely the best value. You’ll know because their scope is complete, their allowances are realistic, their exclusions are clear, and their answers to the questions above are specific.
The quote to worry about is the one that’s low because it’s vague.
How we write ours
Our quotes are itemized by trade, list allowances with amounts, state exclusions, and include a payment schedule tied to completed stages. If you have another contractor’s quote, we’re happy to walk through the differences with you. Read more about how we work.
