Why remodeling estimates can be so different
Estimates for the same project can land far apart. Learn what drives the difference and which questions help you compare them fairly.
Estimates · 4 min read
You’ve spent months imagining what your home could become. Then the estimates start coming in, and this is often where excitement gives way to uncertainty.
One number is noticeably lower. Another is much higher. A third lands somewhere in between. Everyone walked through the same home. Everyone looked at the same drawings. So how can the numbers be so far apart?
An estimate is more than a calculation. It reflects hundreds of decisions and assumptions a builder makes while trying to understand your home, your goals and the work it will take to get there. Some of those are easy to see. Many are not.
Imagine two builders looking at the same kitchen renovation. One notices older wiring and assumes some of it may need to be updated. The other assumes the existing wiring can stay unless an issue is uncovered during construction.
Or maybe you’re renovating a bathroom. One builder prices only the work shown in the plans. Another notices that the new flooring or trim will meet the existing hallway and includes additional work to create a more finished transition.
In both cases, the difference may simply come down to what each builder is assuming or including.
Different ways of planning for the unexpected
Every home has history. Some of it is visible, and some stays hidden until the work begins.
No builder can see inside every wall before construction starts, so contractors handle those unknowns in different ways.
Some include a contingency, or money set aside for potential unknowns, up front. Others estimate based on what is known today and address unforeseen conditions only if they come up during construction.
Neither approach is necessarily right or wrong. What matters is understanding how each builder handles uncertainty and whether that is reflected in the estimate you’re reviewing.
Ask whether contingency is shown as its own line item, built into another part of the estimate, or handled only when an unforeseen condition comes up.
It is also worth asking what would trigger a change order, how additional costs would be communicated and when you would be asked to make a decision.
Those details can explain a meaningful part of the difference between two proposals.
The conversation behind the number matters
If something doesn’t make sense, ask.
If one proposal is significantly different from another, ask why. If you’re unsure what’s included, or why an allowance looks higher or lower than another builder’s, ask about that too.
A good builder should be willing to walk you through those differences and explain how the estimate was put together.
Choosing a builder is about more than comparing the final number. You’re also choosing the team that will help you make decisions, communicate through changes and handle the things that inevitably come up once construction begins.
Questions to ask when comparing estimates
- What assumptions are included in this estimate?
- What isn’t included that could affect the final cost later?
- How do you handle unforeseen conditions if they’re uncovered during construction?
- Based on your experience, where do you see the biggest unknowns in this project?
- What would trigger a change order?
- How are allowances determined?
- If something changes, how and when will additional costs be communicated?
A few more things worth asking
The estimate itself is only part of the picture. These questions help you see whether two proposals really cover the same work, and what it will be like to work with each builder.
What’s included in the price
- Who is responsible for permits, and is that cost included?
- Which products and materials are priced, and which are placeholders until selections are made?
- Who handles cleanup, debris removal and protecting the rest of the home?
- Are there markups or fees on changes, and how are they calculated?
Schedule and payment
- When could work start, and how long is the project expected to take?
- What could affect that timeline, such as permits, material lead times or weather?
- What is the payment schedule, and what is each payment tied to?
- How much is due before work begins?
Experience and protection
- Can you show proof of license and insurance?
- What warranty covers the work, and how do I request service?
- Can I speak with past clients who had projects similar to mine?
You don’t need to ask every one of these. Start with the ones that matter most for your project, and pay attention to how clearly each builder answers.
Take this with you
A one-page worksheet with the key questions above and room to write down each builder’s answer side by side.
The number is important. But so is understanding how the builder arrived at it.
A builder who is willing to explain their thinking and answer your questions is also giving you a good sense of how they communicate before the project even begins.
Thinking about a remodel?
You don’t need to have every detail figured out before reaching out. Tell us what you’re considering, and we’ll start with a conversation about your home, your goals and what makes sense as a next step.