The single biggest predictor of whether your renovation goes well is how you hire your contractor. The quote process is where most things go wrong — homeowners accept the lowest bid without understanding what's actually included, then discover the difference during the project. Here's how to get accurate quotes and evaluate them properly.
Get at least three written quotes
This is the most basic rule of renovation and the one most Canadians skip. Verbal quotes are worthless. Quotes from a single contractor tell you nothing about whether the price is reasonable. Three written quotes from different licensed contractors give you a real sense of market pricing and reveal which contractors have thought carefully about your project.
Where to find contractors: HomeStars, Google reviews, referrals from neighbours, and provincial contractor associations. Avoid door-to-door salespeople and anyone who contacts you first.
What a proper quote includes
A legitimate quote isn't a number on a napkin. It should include: full company name, address, GST/HST number, and licensing information; a detailed scope of work describing exactly what's being done; itemized costs for labour and materials; specific product and brand references where applicable; start and completion dates; payment schedule; what's specifically excluded from the scope; warranty terms; and the contractor's insurance and liability coverage.
If a contractor can't provide this, they're either inexperienced or they're hoping you won't notice what's missing until change orders arrive.
Red flags
- Dramatically lower than other quotes. Not a little lower — dramatically. A quote that's 30-40% below the others isn't a bargain, it's a warning.
- Cash-only or significant discount for cash. Usually means no insurance, no warranty, no tax receipts, and no recourse if things go wrong.
- Requests more than 15% upfront. Standard practice is small deposits with progress payments tied to completion milestones.
- Vague scope or "we'll figure it out as we go." Every item that's not in writing is a potential change order.
- Pressure to sign immediately. Legitimate contractors don't need you to decide today.
- No references or unwillingness to show recent local work. Anyone doing this for a living has examples to show.
- Can't produce insurance certificates. WSIB in Ontario, provincial equivalents elsewhere, plus general liability insurance.
How to compare quotes fairly
Quotes for the same project can look wildly different because contractors include different things. To compare them fairly, create a spreadsheet with every line item across all three quotes. Where one contractor includes something another omits, ask both to clarify. Often the "cheapest" quote is actually the most expensive once you add in everything that was excluded.
Pay particular attention to: demolition and disposal costs, permits, material quality (vinyl flooring can mean $2/sq ft product or $7/sq ft product), plumbing and electrical work, painting and finishing, cleanup, and warranty terms.
The verification checklist
Before signing any contract, verify: the contractor is licensed for the work in your province (ESA for electrical in Ontario, TSSA for gas, etc.); they carry current general liability insurance (ask for the certificate); they're registered with your provincial workers' compensation board; they're in good standing with their trade association; they have positive reviews on multiple platforms (HomeStars, Google, BBB) that appear genuine; they can provide references from recent local projects similar to yours.
Payment structure that protects you
Never pay the full amount upfront. A reasonable payment schedule for most Canadian renovation projects: 10-15% deposit to hold the start date, 25-30% when materials are delivered or demolition is complete, 25-30% at substantial completion of rough work, and the final 25-30% only after full completion and your inspection. Hold back at least 10% until all deficiencies are addressed.
Get it in writing, always
Every change or addition during the project should be documented as a written change order with a specific cost. Verbal agreements about "we'll work it out later" always work out in the contractor's favour. A good contractor will welcome this because it protects them too.
The renovation business is full of legitimate, high-quality contractors who do great work. The three-quote rule and the verification checklist are how you find them instead of the other kind.