How to compare contractor quotes fairly
Why the cheapest quote is not always the best
Getting three quotes is standard advice, but comparing them is where many homeowners struggle. Quotes for the same project can differ by 30 percent or more, and the differences are rarely explained on the page. A very low price can mean the contractor has left out items, plans to use cheaper materials, is short of work for a reason, or expects to make up the difference with change orders later. A very high price can include extras you did not ask for — or simply reflect a busy contractor who does not need the job.
This calculator averages your quotes and flags any that are more than 20 percent above or below the average. Those outliers deserve a closer look before you decide.
Make sure you compare like with like
Before comparing prices, make sure every contractor is quoting the same scope. Give each one the same written description, measurements and finish choices. Ask for itemised quotes that separate demolition, materials, labor, disposal, permits and clean-up. When one quote includes tile and another assumes you will supply it, the totals are not comparable.
Check what is excluded as carefully as what is included. Common exclusions are electrical upgrades, structural repairs, painting after the work, and moving appliances or furniture.
Beyond the price
Price is only one factor. Look at licensing and insurance, reviews and references from recent projects, the proposed timeline, the payment schedule and the warranty. A contractor who asks for a large deposit before ordering anything is a risk. Clear communication during the quoting stage is often a good predictor of how the project itself will go.
Ask each contractor how they handle unexpected problems and changes. A written change-order process, with prices agreed before extra work is done, protects both sides.
Negotiating with confidence
When a quote is above average, ask which items drive the difference; sometimes a specification can be adjusted without losing quality. When a quote is far below, ask what is missing. Never share one contractor’s full quote with another, but you can ask for clarification on specific items. Get the final agreement in writing with scope, price, schedule and payment milestones.
Combine this tool with our renovation budget calculator to see whether the chosen quote, plus contingency, fits within your total budget. The analysis here is a guide only; always read contracts carefully.
How it's calculated
We average the quotes and flag any quote more than 20% away from the average. Very low outliers often leave out scope; very high ones may include extras.
Worked example
Quotes of $18,500, $22,000 and $15,000 average $18,500. Quote C is 19% below average — close to the threshold, so check its scope carefully.
Frequently asked questions
+How many quotes should I get?
At least three, all based on the same written scope of work.
+Should I pick the cheapest quote?
Not automatically. Compare what's included, insurance, warranty and reviews.
+What should a quote include?
Materials, labor, timeline, payment schedule, permits, clean-up and warranty.
+How much deposit is normal?
Typically 10–30%, depending on local rules. Avoid paying most of it up front.
