A contractor quote is a translation document. It converts a description of what you asked for into the language of costs, inclusions, and exclusions — but only if you know how to read it. Most Canadian homeowners accept or reject quotes based on the bottom-line number without understanding what they are actually agreeing to. This is how renovation surprises get born.
What a legitimate quote must include
Before analysing numbers, check whether the quote includes the basics: the contractor's full legal name, business address, HST/GST registration number, and provincial licensing information. A quote without these elements is not a document with legal standing — it is a number on letterhead. Also confirm: a detailed written scope of work, itemized line items for major cost categories, specific product and brand references where applicable, a project start date and estimated completion, a payment schedule tied to milestones, a list of what is explicitly excluded from scope, and the contractor's current liability insurance certificate and WSIB clearance letter.
Labour rates: what is normal
Labour rates vary by trade and city, but here are reasonable ranges for 2026 in most major Canadian markets outside Toronto and Vancouver (add 15–25% for those cities):
- General contractor site supervision: $65–$95 per hour, or included in a project management fee of 10–20% of project cost.
- Journeyman electrician: $85–$130 per hour. Red Seal certified.
- Licensed plumber: $95–$140 per hour for journeyman. Service calls often have a minimum charge of 1–2 hours.
- Tile setter: $60–$95 per hour for experienced tile work.
- Finish carpenter: $65–$90 per hour.
Labour billed at rates significantly below these figures usually means unlicensed workers, apprentices working without supervision, or a rate that will be supplemented by inflated material charges.
Materials markup: what is reasonable
Contractors mark up materials they supply. A markup of 15–25% on materials is standard and reasonable in the Canadian renovation industry — it covers procurement, storage, carrying inventory, and administrative work. A markup over 30% should prompt a conversation. Materials markup is sometimes obscured by presenting material costs at retail price for items purchased at trade discount. You can request that the contractor provide invoices for major material purchases as a transparency condition — this is not an unusual request in a well-managed project.
Allowances versus specified products
An allowance is a placeholder in a quote: the contractor reserves a dollar amount for a material or fixture they have not yet specified. Every unspecified allowance is a potential change order. If a quote says the tile allowance is $3,000 and you ultimately choose tile that requires $5,500 in material, the difference becomes a change order regardless of whether you understood that at the time of signing. Before signing any contract, convert all allowances to specified products with real supplier quotes.
The exclusions list
The exclusions section tells you what the contractor is not responsible for and expects to be added via change order. Common exclusions that should have been included in the base scope: permit fees, demolition and disposal, temporary protection of adjacent surfaces, painting behind removed fixtures, and filling or patching nail holes. Read the exclusions section as carefully as the inclusions — it is where a low quote often hides its full cost.
Payment schedule analysis
A reasonable payment schedule for a Canadian renovation: 10–15% deposit to hold the start date; 25–30% at delivery of major materials or substantial demolition; 25–30% at rough completion; 25–30% at substantial completion. Final holdback of 10–15% retained until all deficiencies are addressed. Any payment schedule requesting more than 30% upfront should be questioned — a contractor who needs that much to start a job is either poorly capitalized or planning to fund another project with your deposit.
Establish change order procedures before signing
Change orders are how renovation costs escalate beyond initial quotes. Before signing, confirm: all changes to scope require written change orders signed by both parties before work proceeds; change orders must include cost and timeline impact; verbal approvals do not create binding cost obligations. A good contractor will welcome this structure because it protects them from scope disputes as much as it protects you.