How to read a contractor quote
Two quotes for the same job can differ by 40 percent and both be honest. Almost always they differ in scope, not in greed — and scope is legible if you know where to look.
The problem with comparing totals
A homeowner gets three numbers — $9,400, $12,800, $16,200 — and treats the middle one as the safe choice. That is guessing. The totals are not comparable until the scope is, and scope lives in the lines beneath the total.
What follows is what to check on any quote for any trade. It takes about fifteen minutes and it is the highest-value fifteen minutes in the whole project.
1. Is the quantity stated, in the trade’s own units?
Roofers work in squares, concrete in cubic yards, drywall in sheets, fencing in linear feet. A quote that says “replace roof — $14,000” tells you nothing. A quote that says “22.4 squares, architectural shingle, single-layer tear-off” can be checked against every other quote and against a calculator. If quantities are missing, ask for them. A contractor who cannot state the quantity has not measured.
2. Is the product named by manufacturer and model?
“Composite decking” spans $40 to $80 per square foot. “Vinyl fence” spans $15 to $60 per linear foot. Within any material category the spread between entry and premium product is enormous, and it is invisible in a total. Insist on the brand and the product line.
3. Is removal and disposal included?
Tear-off, demolition and haul-away are real work charged by weight and hours. This is the single most common difference between a low quote and a high one for the same visible job.
4. What happens if they find something?
Rotten roof decking. An out-of-flat subfloor. A rusted-through duct. These are found after work starts, when your leverage is gone and the alternative to agreeing is a half-finished house. Get the unit price agreed in writing beforehand: dollars per sheet of decking, per square foot of self-levelling compound, per hour of unforeseen work. A contractor who will not put a unit price on the likely surprises is telling you something.
5. Is the site preparation specified?
Grading, subfloor levelling, surface preparation before paint — the invisible work that makes the visible work last. It is also the easiest thing to quietly leave out to win a bid.
6. Permits: included, or your problem?
Most structural work, most electrical and mechanical work, and many fences and decks need a permit. Someone has to pull it and someone has to be there for inspection. Unpermitted work surfaces when you sell the house.
7. Two separate warranties
The manufacturer warrants the product. The contractor warrants the installation. They are different documents with different terms, and installation failures are far more common than product failures. A one-year labor warranty and a ten-year labor warranty are meaningfully different products.
8. The payment schedule
A deposit of 10 to 30 percent is normal. Progress payments tied to defined milestones are normal. A demand for most of the money before substantial work has been done is not, and it removes every incentive to come back and finish well.
9. Licensing and insurance, verified
Ask for the license number and the certificate of insurance, then check the license with your state board and call the insurer to confirm the policy is current. If an uninsured worker is injured on your property, that can become your liability. This takes ten minutes and is the cheapest risk reduction available to you.
The single most useful question. Once you have three quotes, take the cheapest and ask that contractor: “the other quotes include X and Y — are those in yours?” Either they are, and you have found genuine value, or they are not, and you have just learned what the difference was.