What does 'allowance' mean in a contractor's renovation quote?

In Ottawa renovation quotes, an "allowance" is a predetermined dollar amount the contractor allocates for specific materials or fixtures, giving you flexibility to choose products within that budget range.

When reviewing contractor estimates in Ottawa, you'll commonly see allowances for items like flooring ($8-15 per sq ft), lighting fixtures ($200-800 per room), plumbing fixtures ($500-2000 per bathroom), or kitchen cabinets ($150-400 per linear foot). The contractor includes these allowances in their total quote rather than pricing specific products you haven't selected yet.

Here's how allowances work in practice: If your bathroom renovation quote includes a $1,200 allowance for a vanity, you can choose any vanity up to that amount with no additional cost. If you select a $900 vanity, you typically don't get the $300 difference back. However, if you fall in love with a $1,800 vanity, you'll pay the $600 difference as a change order.

What to Watch For in Ottawa Contractor Quotes:

Allowances can be a red flag if they're unrealistically low. A $500 allowance for bathroom tile in Ottawa won't get you far when quality ceramic starts around $4-6 per square foot and installation runs $8-12 per square foot. Low allowances are sometimes used to make quotes appear more competitive, then homeowners face sticker shock when shopping for actual products.

Always ask your contractor to specify exactly what the allowance covers. Does that flooring allowance include underlayment, installation, and trim? Is HST included? Some contractors in Ottawa include installation labor in allowances while others add it separately.

Protecting Yourself:

Before signing any contract, visit suppliers like Home Depot, Lowes, or local Ottawa showrooms to understand realistic pricing for products you want. A reputable contractor should be able to explain their allowance calculations and show you examples of what those amounts typically buy.

Get allowances detailed in writing, including whether they cover just materials or include installation. Understand the process for changes - will you get credits for unused allowances, and how are overages handled? The best contractors provide allowance worksheets showing sample products within each budget range.

Ontario Consumer Protection:

Under Ontario's Consumer Protection Act, contractors must provide clear, written estimates. Vague allowances that don't specify what's included can be grounds for dispute. If allowances seem unrealistic or poorly explained, consider getting additional quotes from other licensed contractors.

For complex renovations in Ottawa, consider asking contractors to provide "cost-plus" pricing for certain items instead of allowances, where you pay actual material costs plus an agreed markup. This approach provides more transparency and control over your selections.

Contact the City of Ottawa Building Code Services (613-580-2424) if you need clarification on what materials meet code requirements, as this can affect your allowance decisions for items like windows, insulation, or electrical fixtures.