Why do quotes vary so much from one contractor to another? This is a common question in renovation and construction, especially when you receive several quotes for the same project. Even with identical plans, the amounts offered can vary by tens of thousands of dollars.
Here are the main reasons why two entrepreneurs do not estimate a project in the same way.
1. The level of detail in the bid
Not all quotes offer the same level of accuracy.
Some are limited to broad outlines:
- Demolition work
- Interior renovation
- Finish
Others detail each item:
- Selective demolition
- Structural reinforcement
- Protection of the existing building
- Coordination of subcontractors
- Contingency management
The more detailed a bid is, the more it reflects the reality of the project and the fewer surprises there will be along the way.
2. What is included… or excluded
Two different amounts can conceal very different scopes of work.
For example :
- Is comprehensive site management planned?
- Are protective coverings (floors, stairs, furniture) included?
- Are management, coordination, and monitoring costs included?
A lower bid sometimes excludes certain items that will be added later as extras.
3. The team and the execution method
The price also reflects who carries out the work.
- In-house team of carpenters vs. 100% subcontracted labor
- Daily or occasional site supervision
- Level of experience of carpenters on more complex projects
A qualified, well-supervised team present on site ensures better quality workmanship… but this is also reflected in the bid.
4. Risk and contingency management
Every construction project involves a degree of uncertainty, especially when it comes to major renovations:
- hidden conditions,
- existing non-compliant structure,
- regulatory constraints.
Some entrepreneurs calculate “at the lowest possible level” and assume these risks later on.
Others anticipate them as soon as the bid is submitted in order to offer a better-controlled project.
To sum up
If bids vary so much, it is not because contractors all do the same thing at different prices. It’s because The methodology, planning, management, and level of rigor are not the same.
Comparing only the final amount can be misleading. It’s essential to compare what is actually included, how the project will be carried out, and the level of support offered.
A well-managed project may cost more initially, but it often avoids many surprises later on.
