Is it a red flag if a quote is way lower than others?

Yes, a significantly lower quote is often a major red flag when hiring contractors in Ottawa. While everyone loves saving money, quotes that are 20-30% or more below others typically indicate problems that will cost you far more in the long run.

Why Low Quotes Should Concern You

Legitimate contractors in Ottawa face similar costs for materials, labor, permits, and insurance. When one quote is dramatically lower, it usually means corners are being cut somewhere. The contractor might be planning to use substandard materials, skip necessary permits, hire uninsured workers, or add surprise charges later through change orders.

Some low-bidding contractors operate what's essentially a bait-and-switch scheme. They hook you with an impossibly low price, then once work begins, they discover "unexpected issues" that weren't in the original scope. Suddenly your $10,000 bathroom renovation becomes $18,000, and you're stuck because they've already torn up your space.

What Low Quotes Often Hide

Unlicensed contractors frequently underbid because they're not factoring in proper permits, ESA electrical inspections, or WSIB coverage. In Ottawa, electrical work requires ESA permits and inspections (around $100-200), and legitimate contractors must carry WSIB clearance. Contractors skipping these requirements can bid lower but leave you liable for injuries, code violations, and having to redo work.

The quote might also exclude essential items that others include. Always compare line-by-line to ensure you're looking at the same scope. Some contractors deliberately leave items out of their initial quote, knowing they can add them later when you're committed.

How to Evaluate Multiple Quotes

When you receive quotes in Ottawa, the middle range typically represents fair market value. If you get three quotes for $15,000, $16,500, and $11,000, focus on the first two. Ask the low bidder specifically what's different about their approach, materials, or timeline.

Verify that all contractors are properly licensed through ESA (for electrical), TSSA (for gas work), and carry current WSIB clearance certificates. Check references and ask to see examples of completed work. Legitimate contractors welcome these requests; fly-by-night operators often make excuses or pressure you to decide quickly.

Protecting Yourself

Always get quotes from at least three licensed contractors and be suspicious of any that's dramatically different from the others. For major renovations in Ottawa, expect to pay current market rates - trying to save 30% upfront often costs double that in repairs, delays, and stress later.

Remember that under Ontario's Construction Lien Act, you can hold back 10% of payments for 60 days after completion. This holdback protects you if problems emerge, but only works if you're dealing with a legitimate contractor who follows proper procedures.

Contact City of Ottawa Building Code Services at 613-580-2424 if you have questions about permit requirements for your project. A contractor who's reluctant to discuss permits or proper procedures is showing you exactly why their quote is so low.