5 min read
How to read a remodel estimate line by line
Allowances, contingency, and the difference between a bid and a guess. What should be on the page before you sign.
A lump sum is not an estimate
If a bid is one number on one page, you cannot compare it to anything and you cannot tell what happens when something changes. A real estimate is broken into scope lines — demolition, framing, mechanical, electrical, plumbing, drywall, tile, cabinetry, finish carpentry — each with its own cost.
Allowances are placeholders, and they should say so
Tile, plumbing fixtures, appliances, and lighting are usually carried as allowances until you select them. That is normal. What is not normal is an allowance set unrealistically low to make the bottom line look good. Ask what the allowance buys at today's prices, and ask to see a product that actually meets it.
Contingency and exclusions tell you who is being honest
Older homes hide things: knob-and-tube wiring, rot behind siding, a beam that was never really carrying. A stated contingency means your contractor has thought about that. A clear exclusions list means they are telling you what is not in the price rather than discovering it later.
Ask how change orders work before you need one
Every remodel has changes. What matters is whether they are priced and approved in writing before the work happens. On our jobs, nothing gets built on a verbal, and you see the cost impact before you say yes.