How to check if a builder's quote is fair: 7 things to look for

You have finally received a quote for your addition, renovation or new house. Maybe you have three. The totals are very different, the formats don’t match, and you are wondering: is this a fair price?

The good news: you don’t need to be a builder to review a quote. You need to know where to look. Here are the seven things we check first when a homeowner asks us to review a quote.

1. Is the scope complete?

The most expensive quote problems are not high prices, they are missing work. A quote can look cheap simply because it leaves things out, which will come back later as “extras” (also called change orders or variations).

Compare the quote with your plans, room by room, and ask:

Are demolition and waste removal included?
Are foundations, drainage and connection to the existing house included?
What about electrical, plumbing and heating work, or are they “by others”?
Are finishes (flooring, painting, tiling, trim) included, and to what level?
Who handles permits, inspections and final cleaning?

If you can’t tell whether something is included, assume it isn’t and ask.

2. Are quantities stated, and do they make sense?

A detailed quote lists quantities: square feet or square metres of flooring, linear feet of walls, number of windows. Quantities let you compare quotes fairly and spot errors.

Check a few simple ones against your plans. If your addition has 400 sq ft of floor and the quote prices 550 sq ft of flooring, ask why. A little extra for waste is normal (often 5–10%); a lot is not.

3. Watch out for allowances and “provisional sums”

An allowance (in the UK, a provisional sum or PC sum) is a placeholder amount for something not yet chosen, like kitchen cabinets or tiles. It’s normal to have a few, but:

Low allowances make a quote look cheaper. If the kitchen allowance is $8,000 but the kitchen you want costs $20,000, the difference is yours to pay.
Many allowances mean the real price is unknown. Try to fix as many choices as possible before signing.

Ask for each allowance to be listed separately, and check that its amount is realistic for the quality you expect.

4. Are unit prices in a normal range?

You don’t need to know every price, but a few unit prices tell you a lot: cost per square foot of framing, per window, per square metre of tiling, per hour of labour. Compare them between quotes and with typical local costs.

A price much higher than the others may hide a risk the builder has seen (or simply a busy schedule). A price much lower may mean a misunderstanding of the scope, or a builder who plans to recover the difference later.

5. What is excluded, and what are the assumptions?

Read the exclusions and assumptions carefully: they are often at the end, in small print. Common ones include:

“Excludes rock excavation” or “assumes normal soil conditions”
“Excludes structural engineer’s requirements”
“Excludes upgrades to the electrical service”
“Prices valid for 30 days”

Each exclusion is a potential cost for you. Ask how it would be priced if it happens.

6. Payment schedule and contract terms

A fair payment schedule follows the progress of the work. Be careful with:

Large deposits before any work starts. Rules vary: some US states and Canadian provinces cap deposits for home improvement contracts.
Payments tied to dates rather than completed stages.
No retention (a small percentage held back until defects are fixed).

Also check the timeline, how changes will be priced, the warranty on workmanship, and proof of insurance and, where required, a licence or registration.

7. Compare like with like

When you have several quotes, put them side by side in a simple table with the same headings: demolition, foundations, structure, roof, windows, electrical, plumbing, heating, finishes, fees. Fill in each builder’s price. Gaps show missing items; big differences show where to ask questions.

This is exactly where an independent estimate helps: it gives you a reference column based on your project, not on any builder’s offer.

Red flags

Pressure to sign quickly or “special price if you sign today”
One single total with no breakdown
Cash-only payments or no written contract
No address, insurance or references

Before you sign

A careful review can save far more than it costs, and gives you confidence in the builder you choose. If you’d like a second opinion, our engineers offer a contractor quote review: we check prices, quantities and missing items, and give you a list of questions to ask. You can also start with our free cost calculator to see what your project should roughly cost.