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.
Get at least three written quotes
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 should include: full company name, address, GST/HST number, and licensing information; a detailed scope of work; 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.
Red flags
- Dramatically lower than other quotes. 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.
- Requests more than 15% upfront. Standard practice is small deposits with progress payments tied to milestones.
- Vague scope. Every item not in writing is a potential change order.
- Pressure to sign immediately. Legitimate contractors don't need you to decide today.
- 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. Create a spreadsheet with every line item across all three quotes. Often the cheapest quote is actually the most expensive once you add in everything that was excluded.
Payment structure that protects you
Never pay the full amount upfront. A reasonable payment schedule: 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.