I got three quotes for my remodel—how do I even begin to compare them?
If you’re planning a home renovation in the New Hampshire seacoast region, you’ve probably heard advice like, “Always get three quotes for your project. Don’t hire the cheapest, don’t hire the most expensive—go with the middle one.” At first glance, this sounds like solid advice, but as you’ve likely experienced, comparing quotes is anything but straightforward.
Does this sound familiar? You reached out to several contractors—maybe 6 or 7—4 or 5 of them came to your home, and now you’ve got three different quotes. Great! All you have to do is choose the middle one, right?
But there’s a problem. Each quote is formatted differently, with varying levels of detail and wildly different price points. Now you’re left scratching your head. How are you supposed to make sense of this? How do you know if you’re comparing apples to apples? Why does this have to be so complicated?
In this article, we’ll answer your most pressing questions about the quoting process, help you understand what to look for, and give you the tools you need to make an informed decision. By the end, you’ll feel confident choosing the right contractor for your home renovation in NH.
Why are contractor quotes structured so differently? Shouldn’t there be a standard format contractors follow?
This is one of the most common frustrations homeowners experience. In an ideal world, all contractors would present their quotes in a uniform format, but that’s not how the industry works. Each contractor may have their own approach to presenting quotes based on their business style, past experiences, or even the software they use.
Some contractors may send a simple text with a price, assuming you’ll remember the details from your conversation. Others may provide a proposal or an estimate with varying levels of detail. Unfortunately, there’s no standardized format across the industry, which means you’ll need to look beyond just the price to understand what’s included.
To make things easier for you, ask each contractor upfront how they structure their quotes. Explain that you want to see a breakdown of labor, materials, and any other costs. This way, you can better compare what you’re getting for your money.
Why is it important to get a breakdown of materials and labor for my renovation project?
Here’s the thing: a detailed breakdown of materials and labor isn’t necessarily the most important part of a renovation quote. What truly matters is understanding what’s included—both labor and materials—and ensuring that the quote aligns with the scope of work and your expectations.
A breakdown can be helpful in spotting discrepancies. For example, if you know you selected $10,000 worth of plumbing fixtures, but the materials cost in the quote is only $5,000, that’s a red flag. However, a quote that includes a highly detailed scope of work, along with specific material selections and design details, can be just as valuable—if not more so—than a simple labor and material breakdown.
So, while having a line-by-line breakdown can be useful, don’t discount a quote that doesn’t include one, as long as the description of what’s included is crystal clear.
What’s the typical breakdown of costs in a renovation quote? How much detail should I expect for labor, materials, and markups?
A detailed, professional renovation quote is typically broken down into a few key categories:
Labor: This is the cost of hiring skilled workers to do the job. Labor costs can be listed by the hour or as a lump sum, depending on the payment structure of your contract. (For more on this topic, check out the article: Which is better: a time and materials, cost-plus, or fixed price contract?)
Materials: This should include all the products and supplies needed for the project, from tile to cabinetry to paint. A good quote will specify quantities and types of materials.
Project management: Some contractors charge a separate fee for managing the renovation process, especially if they’re coordinating multiple subcontractors and handling scheduling.
Miscellaneous fees: Additional fees like permits, waste disposal, and special services such as demolition may appear as separate line items.
Markup: It’s common for contractors to add a markup on materials to cover the time and effort spent sourcing, purchasing, and handling these items. (To learn more about how markups are calculated, why contractors charge them, and when you should avoid paying a markup, read the article here: Should I pay markup on building materials?)
You should expect a reasonable amount of detail in each category. For example, instead of just seeing 'Tile: $600,' a detailed quote might read 'Tile: 100 sq ft @ $6 per sq ft.' The contractor should also be transparent about whether the price includes any markups, or if they will be added later—along with an explanation of how much those markups will be.
What level of detail should I expect in a professional contractor’s quote?
The more detailed the quote, the better. A professional quote should outline every significant part of the project, from the types of materials being used to the tasks included in the contractor’s scope of work. If a contractor simply sends you a lump-sum figure without any details, that’s a red flag.
Look for quotes that break down:
Types and quantities of materials: For example, “Vanity: $1,000,” not just “Vanity.”
The tasks included in the contractor’s scope of work, and more importantly, what’s NOT included.
Labor hours and the hourly rate (time & materials agreements only).
Additional costs like demolition, disposal, or permits.
If the quote is missing details, ask the contractor for clarification. You’re investing in your home, so it’s important to understand exactly what you’re paying for.
What is the difference between a “proposal,” an “estimate,” a “quote,” and a “bid?”
While these terms are often used interchangeably, they do have slightly different meanings:
Proposal: A proposal outlines the contractor’s plan for the project. It includes a scope of work, timelines, and a price, but some details may remain vague until the project begins. The price listed in the proposal will either be an estimated price (subject to change) or a price quotation (fixed cost), as explained below.
Estimate: An estimate is typically a more detailed breakdown of costs but is not final. It may include ranges or potential adjustments depending on material costs or labor hours.
Quote: A quote is typically a fixed price for the project. Once agreed upon, it becomes a binding contract that won’t change unless additional work is added.
Bid: A bid is often used when multiple contractors are competing for the same project. It’s a detailed offer outlining how the contractor plans to complete the project and at what cost.
To learn more about the differences between these terms, follow this link to the article: What is the difference between an estimate, a quote, and a bid?
It’s important to know which type of document you’re receiving, as this helps you understand whether the price is final or subject to change.
What should I look for in the scope of work section of a renovation quote to make sure all important details are covered?
The scope of work is one of the most important sections of any quote. It should provide a clear picture of all the tasks the contractor will perform. Pay special attention to these key details:
Demolition: If any part of the existing structure needs to be removed.
Structural work: A description of any necessary repairs or upgrades.
Finish work: Details on painting, tiling, or other finishing touches.
Material selections: A clear list of what materials will be installed and where.
Clean-up: Make sure it’s clear whether the contractor will handle debris removal and site clean-up.
If the scope of work is vague or missing important details, ask the contractor for clarification. You don’t want surprises popping up halfway through your project.
How can I tell if a contractor has included all the materials and labor I need in their quote?
The best way to ensure everything is included is to go over the quote line by line and compare it to your conversations with the contractor. Does the quote match the materials and tasks you discussed? If a contractor lists "tile," but doesn’t specify the size, material, or price, you may not get what you expect.
Similarly, labor should be clearly defined. If a quote doesn’t include labor hours and the hourly labor rate (for a time & materials project), or a detailed scope of work with a lump sum cost for all of the labor (under a fixed-cost agreement), that’s a detail you’ll need to clarify.
Is it normal for contractors to omit specific product details, like model numbers or finishes, in the initial quote? Should I ask for this information up front?
It’s fairly common for contractors to leave product specifications (like model numbers or exact finishes) out of the initial quote, especially if you haven’t finalized your choices. However, you should absolutely ask for these details before signing a contract. This ensures there are no misunderstandings about the quality or type of materials being used.
If you’ve discussed specific products, ask the contractor to include them in the quote. You don’t want to find out halfway through the project that the vanity they ordered isn’t the one you envisioned.
How can I figure out whether the material costs in a contractor’s quote include a markup? What’s a reasonable markup percentage?
Contractors often add a markup to the materials they purchase, usually to cover the time and effort it takes to source and deliver those materials. A typical markup ranges from 20-30%, but it can vary.
The key is transparency. Ask the contractor if the material costs in the quote include a markup, and if so, what percentage. This way, you’ll know exactly what you’re paying for and you can avoid misunderstandings down the road.
How can I compare contractors’ hourly rates if not all of them provide this information?
Not all contractors will break down their labor costs into an hourly rate, but it’s definitely worth asking. If one contractor provides an hourly rate and others don’t, you can get a rough idea by dividing the total labor cost by the estimated hours for the project.
It’s important to keep in mind that many contractors include project management, waste disposal, and permit costs under the labor section. This can make their rate seem higher than it actually is, so don’t be alarmed if one quote appears more expensive. Also, a higher hourly rate might indicate a more experienced team that can finish the job faster, potentially saving you money overall.
If a quote seems vague, is it appropriate to ask the contractor for more detail, and if so, what specifically should I ask for?
Absolutely! It’s your home and your money, so don’t hesitate to ask for more detail if a quote feels vague. Here’s what you can ask for:
A detailed breakdown of labor and materials.
Specific product names, model numbers, or finishes.
Clarification on whether the price is fixed or subject to change.
A reputable contractor will be happy to provide the information you need to feel comfortable moving forward.
Is it common for contractors to provide a quote through a text message, or should I be concerned if it’s not a formal document?
While some contractors might give you a ballpark figure over text as part of a casual conversation, you should always request a formal written quote before agreeing to any work. A text message isn’t a binding contract, and it can leave too many details up in the air.
A formal document should include the scope of work, material specifications (or allowances), pricing, and terms, which protects both you and the contractor.
How can I tell if a quote is fixed price or if it’s subject to change based on actual hours worked or material costs?
A fixed-price quote means the contractor has committed to completing the project for the price listed, regardless of how long it takes or how much the materials cost. If the quote is subject to change, it will typically be noted as an “estimate” rather than a quote.
If it’s unclear, ask the contractor directly whether the price is fixed or subject to change—and get it in writing!
How do I know if a quote includes enough labor hours to cover the entire project, or if I might face extra charges later on?
The best way to know if a quote includes enough labor is to ask how many hours have been estimated for the project and compare this to the scope of work. If the quote seems low on hours, or if there’s no breakdown of labor at all, ask the contractor how they arrived at their numbers.
This is especially important for larger projects, where unexpected delays could result in more hours than originally planned.
What happens if a contractor doesn’t specify how changes or additional hours will impact the final price? Is that a red flag?
Yes, this can be a red flag. If a contractor doesn’t clearly state how changes or additional hours will affect the final price, it leaves room for surprise charges.
A well-written contract should include a “change order” process, which outlines how any additional work or changes will be handled. If this isn’t included, ask the contractor to explain their policy on changes and extra hours.
When I compare contractor quotes, how can I determine which quote is more accurate and won’t have unexpected costs later on?
The most accurate and reliable quotes will be the ones with the most detail. Look for quotes that include:
A clear scope of work.
Material specifications.
A fixed price
Clear terms on how changes will be handled.
If a quote is vague or missing important details, it’s more likely to change later on. The more upfront a contractor is about costs, the less likely you’ll be surprised by additional charges.
What should I do if a quote doesn’t include certain items that I discussed with the contractor?
If a quote is missing items you discussed, it’s important to address this before moving forward. Contact the contractor and ask for a revised quote that includes all the materials and labor you talked about. This ensures everyone is on the same page and avoids misunderstandings later.
Is it acceptable to go back to a contractor and ask for more clarification or a revised quote before making a decision?
Yes, it’s absolutely acceptable to ask for more clarification or a revised quote. In fact, most contractors expect homeowners to have follow-up questions or request additional details. You want to feel confident in your decision, and any contractor who values transparency will be happy to provide the information you need.
Should I be more focused on comparing the details of renovation quotes rather than just the overall prices?
Absolutely. While it’s easy to focus on the price tag, it’s the details within the quote that will give you the best understanding of what you’re actually getting. A lower-priced quote might not include certain critical tasks or materials, while a more expensive quote may provide an all-inclusive service that prevents additional costs later on.
If I’m confused by a quote, who should I reach out to for help in interpreting it—my designer, a third-party expert, or the contractor themselves?
If you’re confused by a quote, start by reaching out to the contractor directly. They should be able to explain their pricing and answer any questions. If you’re still unsure, you can also consult a designer, project manager, or another trusted third party who can help you understand the details.
What are some red flags that indicate a contractor’s quote might lead to unexpected costs later in the project?
Here are a few red flags to watch for:
Vague descriptions of the scope of work.
No fixed price or unclear terms regarding additional costs.
Estimated labor hours but no hourly rate.
Missing details about materials, surface protection, waste disposal, or project management.
No change order process included in the contract.
If you see any of these warning signs, don’t hesitate to ask for more detail or clarification before moving forward. A little extra effort upfront can save you from unexpected surprises down the road.
In conclusion
Reviewing and comparing multiple quotes can feel overwhelming, but by focusing on the details and asking the right questions, you’ll be in a much better position to choose the right contractor in NH for your project. Don’t be afraid to ask for clarification on anything that feels unclear or incomplete—after all, it’s your home, and you deserve peace of mind.
Ready to take the next step?
If you’re ready to move forward with your renovation and want to work with a trusted, transparent team, contact us today to discuss your project. We’ll be happy to help guide you through the process!
