Have you been wondering why contractor quotes vary so much?

When you start collecting quotes for a kitchen or bathroom renovation, it’s not uncommon to feel overwhelmed by the range of prices. You might be wondering, "Why are these quotes so different for the same project?" 

You probably expected there to be slight price differences, like when you're shopping at different stores, but nothing as extreme as this! So, what gives? Why are these quotes all over the place?

When you asked the contractors about it, one contractor said their quote reflects better quality materials & workmanship, while another claims the higher price is simply a rip-off. So, who’s telling the truth?

Well, the reality is that neither answer gives you the full picture. Let’s take a deep dive into why contractor quotes can vary so widely and what you really need to look for when comparing them.

Why is there such a big difference between contractor quotes for the same project?

The biggest reason for the price difference between contractor quotes usually comes down to what’s included in the scope of work. A more expensive quote is often "all-inclusive." This means it covers everything—materials, labor, permits, dumpsters, cleanup, and more. On the flip side, a lower-priced quote might leave some of these items out, with the expectation that you’ll handle them separately or pay for them later.

Another factor is how contractors handle project details. Without a detailed project plan, contractors are left to make decisions on hundreds of small details—each with a price tag. Some contractors might take shortcuts to keep costs low, while others include every detail to ensure quality. Understanding what’s in the quote is key to making an informed decision.

What factors cause some contractors to charge more than others?

While scope of work is the biggest factor, there are other reasons some contractors charge more than others. Here are some of the most common ones:

• Experience and expertise: Contractors with a solid reputation and years of experience often charge more because they can deliver a higher-quality result with fewer mistakes.

• Business overhead: Contractors with larger teams or office spaces have higher operating costs, which get reflected in their pricing.

• Insurance and licensing: Fully licensed and insured contractors typically charge more to cover these essential business expenses.

• Project management style: Some contractors manage every detail of your project from start to finish, which can come at a premium.

• Quality of materials: Contractors who work with high-end suppliers or recommend premium materials may have higher quotes.

All these factors contribute to the overall cost, but a higher price is not always a bad sign. Often, it’s a sign of quality and reliability.

For more details on what factors can impact contractor pricing, read our full article: Why are some contractors more expensive than others?

Are higher-priced contractors offering better quality, or are they just overcharging?

It’s tempting to assume that higher-priced contractors are just trying to overcharge you, but that’s not usually the case. More often than not, contractors with higher quotes are offering better service, using higher-quality materials, or investing in more skilled labor. They might also offer comprehensive warranties or additional services that lower-priced contractors leave out.

That said, it’s important to ask questions. Find out what’s included in the quote and make sure the extra cost aligns with the value you’re getting. Sometimes, the higher-priced contractor is giving you a more complete package, while the lower quote might leave out key items.

What should I look for in a contractor's quote to understand why the price is higher or lower?

Here’s what to pay attention to when reviewing contractor quotes:

• Materials: Check the type and quality of materials being used. Are there differences in the grade of fixtures, countertops, or flooring?

• Labor: Does the quote cover all labor, from demolition to the finishing touches? Or are some tasks left out?

• Permits and fees: Make sure the quote includes essential items like permits, dumpsters, and cleanup.

• Scope of work: Is everything clearly listed so you know exactly what’s being done?

• Allowances: Sometimes contractors leave room for materials you haven’t chosen yet, like tile or fixtures. Make sure you know what’s covered by these allowances.

• Warranties: Does the quote mention warranties or guarantees? A longer or more comprehensive warranty can justify a higher price.

These details can help explain why one quote is higher or lower than another. Be sure to ask for clarification if anything seems unclear. 

Can I ask a contractor to explain why their price is higher or lower than the others?

Absolutely! You should always feel comfortable asking a contractor to walk you through their pricing. A good contractor won’t shy away from explaining why things cost what they do. In fact, this can help build trust and make sure you both have a clear understanding of what’s included. If something seems unclear or if you’re not sure why their price differs from others, don’t hesitate to ask. It’s your project, and you deserve to know where your money is going.

What questions should I ask each contractor to understand their pricing better?

To get the clarity you need, consider asking the following:

• Is this a fixed price, or will it fluctuate based on hours worked and material bills?

• Are you including all the necessary specialty trades, like plumbers or electricians?

• What types of materials are you using, and are they included in the quote?

• Are there any additional costs I should expect, like permits or cleanup?

• How do you handle unexpected costs that may come up during the project?

These questions will help you understand what’s behind each contractor’s price.

How can I tell if a contractor’s quote is fair?

To determine if a contractor’s quote is fair, you’ll want to look at a few key factors. First, check that the scope of work is clearly outlined. A fair quote should include all necessary details, such as labor, materials, permits, and any other expected costs. Any aspects that aren’t included should be clearly stated. If something feels vague or incomplete, ask for clarification.

Transparency is another important indicator. A reputable contractor will be open and willing to explain every aspect of their pricing. If the contractor can clearly walk you through the quote, explaining what’s included and why certain costs are necessary, that’s a good sign. On the other hand, if they seem hesitant or unclear, it’s worth taking a closer look.

Ultimately, a fair quote should give you a clear picture of the total project cost, with no hidden surprises or missing pieces. If everything is transparent and aligns with the work you want done, you’re likely looking at a fair deal.

Are contractor quotes negotiable, or should I expect the price to stay the same?

In some cases, certain parts of a quote might be negotiable, but not every contractor is open to negotiating. Instead of focusing on lowering the overall price, it’s usually better to ask if there are ways to adjust the scope of the project or material selections to better fit your budget. Contractors can often suggest alternative materials or approaches that still meet your goals without compromising quality.

How do I compare quotes when one contractor provides a detailed breakdown and another only gives a lump sum?

If one contractor gives you a detailed breakdown and another hands you a lump sum, it can be tough to compare. The detailed quote lets you see where every dollar is going, but a lump sum isn’t necessarily a bad sign. It just means you need to ask more questions.

Reach out to the contractor with the lump sum and ask for more detail. Get them to explain what’s included and if there are any costs left out. Once you have that information, it’ll be easier to compare the two quotes side by side.

Is a detailed breakdown of materials and labor important when comparing quotes?

Here’s the thing: a detailed breakdown of materials and labor isn’t always the most important part of a renovation quote. What really matters is understanding what’s included—both in terms of labor and materials—and ensuring that the quote matches your expectations.

A breakdown can be helpful if something seems off. For example, if you selected $6,000 worth of plumbing fixtures but the materials line in the quote only shows $3,000, that’s a red flag. However, if the quote includes a highly detailed scope of work with specific material selections and design details, it can be just as valuable as a line-by-line breakdown. The key is clarity.

Why are some materials priced differently between contractors when they’re using the same products?

This can be puzzling, right? Even if two contractors are using the same materials, their prices might vary due to their relationships with suppliers. Some contractors may get bulk discounts, while others might add a markup as part of their pricing model. It’s always a good idea to ask where the materials are coming from and if there are any alternatives that could save you money without sacrificing quality. A reputable contractor will be transparent about how materials are priced.

Do contractors include profit margins differently, and how does that affect my quote?

Yes, contractors handle profit margins in different ways. Some build their profit into the overall labor costs, while others might add a percentage on top of materials or other expenses. In a perfect world, this wouldn’t matter because the contractor would end up with a similar profit regardless of how it’s structured. But in reality, the way costs and fees are organized can lead to slight variations in your total project cost.

For fixed-cost, all-inclusive agreements, this usually isn’t a big concern. However, be cautious of allowances that are subject to a high markup. These can cause the final cost to be more than expected when you make your final material selections.

Is there a standard markup on materials that contractors use?

There isn’t a strict industry standard, but most contractors mark up materials anywhere from 20% to 35%. This markup helps cover the time spent sourcing and purchasing materials, as well as the risk the contractor takes on if something goes wrong. It’s always worth asking about the contractor’s markup policy so you know exactly what you’re paying.

Curious about whether paying markup on materials is fair? Check out our article: Should I pay markup on building materials?

Do contractors pad their quotes to allow for potential issues or delays?

Some contractors include a contingency fund in their quotes to cover unforeseen issues, like structural problems or weather-related delays. While this can make their quote seem higher, it protects you from unexpected expenses later on. Be sure to ask if any contingencies are included in the quote and what they cover.

Are there hidden costs I should be aware of in lower cost contractor quotes?

Yes, it’s definitely possible. A lower quote might look appealing at first, but it could be missing important costs like permits, materials, or even cleanup. These costs can add up quickly and lead to a more expensive project in the end. Always ask for a detailed breakdown of what’s included so you don’t get hit with surprise expenses later.

Should I be concerned if one contractor charges significantly less for labor than others?

If a contractor’s labor costs are significantly lower than others, it’s worth asking why. Are they using less experienced workers? Are they rushing the job to save time? Labor is a critical part of a quality renovation, so cutting corners here could backfire.

If a contractor’s quote seems low, how do I know if they’ll cut corners?

A low quote doesn’t necessarily mean low quality, but it can raise a red flag. One of the easiest ways to spot potential corner-cutting is by reviewing the materials listed in the quote. If the contractor has included low-quality materials without you asking for them, it could be a sign that they’re trying to keep costs down at your expense. A reputable contractor will typically recommend high-quality materials as their standard and only offer lower-grade options if you request them. And it’s not just about the materials—if they’re skimping there, they might also be using less-experienced labor to cut costs.

Is it possible that one contractor overlooked something important in their quote?

Absolutely. Contractors are human, and things can get missed. If a quote seems surprisingly low, take a closer look to make sure everything you discussed is included. Does it account for permits, materials, and the full scope of work? If not, that low price might not be so low once the project starts.

Is a lower quote too good to be true, and could it cost me more in the long run?

Sometimes, yes. If a quote seems too good to be true, it often is. A lower price might not cover everything, or the contractor could be cutting corners to keep the price down. In the end, you could end up paying more to fix mistakes or deal with issues that weren’t handled properly the first time around. While a lower quote might seem like a good deal at first, it’s often worth investing in a contractor who values quality and stands by their work. This can save you from costly headaches down the road.

Need a clear quote in plain english?

Feeling overwhelmed by contractor quotes? Rothrock Kitchen & Bath Remodeling can help! We provide clear, detailed quotes and walk you through the process so you feel confident about your project. Contact us today to work with a reputable contractor in the NH seacoast and get started on your next renovation!