Why Do Renovation Estimates Vary So Much?
Getting estimates for a renovation can be one of the most confusing parts of the entire process. You might have one contractor quote you $40,000 for a kitchen renovation and another quote you $75,000 for what seems like the exact same work. It can feel like the numbers are just being pulled out of thin air, leaving you wondering who you can actually trust. When we look at estimates, we aren't just looking at the bottom-line number. We’re looking at the clarity of the project. Here are the three main reasons those numbers vary so much.
Allowances vs. Fixed Costs
One contractor might give you a low price because they’re using "allowances" for things like tile or cabinets. For example, they might budget $2,000 for your backsplash, but the tile you actually want costs $4,000. We prefer to get as close to the real numbers as possible upfront. A low estimate often just means the real costs are going to show up later as change orders. We believe a transparent process is better than a low-ball quote that changes halfway through.
The Scope of Invisible Work
This is a big one. One estimate might just be to swap out cabinets and counters. Another estimate might include leveling the floor, updating the electrical panel to meet current codes, and insulating the exterior walls while they’re open. One contractor is giving you a facelift while the other is giving you a space built to last another fifty years. This is especially important during whole home renovations where the underlying systems are just as important as the finishes.
Overhead and Protection
Professionalism has a cost. Contractors who carry full insurance, handle all the permitting, and provide a dedicated project manager will always be more expensive than a guy with a truck. That extra cost is essentially your anxiety insurance. It ensures that if something goes wrong, it’s covered, and you aren't left holding the bag. It means there’s a team behind the work, not just one person trying to manage everything at once.
We always suggest that instead of looking for the lowest number, you look for the most detailed estimate. The contractor who takes the time to list out every sink, light, and permit fee is the one who has actually thought through your project. They’re showing you the reality of the work, rather than just what you want to hear. If you aren't sure why an estimate looks the way it does, don't be afraid to ask for a line-item breakdown. We want our clients to know exactly where their money is going before the first hammer swings. If you’re looking at an estimate and aren't sure what’s included, we’d be happy to give you a second set of eyes. You can reach out to us here.
