What does 'contingency' mean in a renovation quote?

A contingency in a renovation quote is extra money (typically 10-20% of the project cost) set aside to cover unexpected issues that arise during construction - and in Ottawa renovations, you'll almost certainly need it.

When contractors provide quotes for Ottawa homes (especially older properties in neighborhoods like the Glebe, Westboro, or Sandy Hill), they're estimating based on what they can see. But once walls come down or floors come up, surprises emerge: outdated electrical that needs ESA upgrades, plumbing that doesn't meet current Ontario Building Code, or structural issues requiring engineer approval.

How Contingency Works in Ottawa Projects

Smart Ottawa contractors will either include a contingency line item in their quote or strongly recommend you budget for one separately. For example, on a $40,000 bathroom renovation in an older Ottawa home, a 15% contingency would add $6,000 to your budget. This isn't the contractor trying to inflate costs - it's protecting both of you from project delays and disputes when the unexpected happens.

The contingency covers legitimate additional work discovered during construction, not changes to your original scope. If your contractor finds knob-and-tube wiring that needs immediate replacement for ESA compliance, that comes from contingency. If you decide mid-project that you want heated floors instead of regular tile, that's a change order - separate from contingency.

What to Watch For

Red flags include contractors who refuse to discuss contingencies or claim "there won't be any surprises." In Ottawa's housing stock - much of it 30+ years old - surprises are virtually guaranteed. A contractor who won't address this reality either lacks experience or isn't being honest about project risks.

Legitimate contractors will explain what types of issues the contingency covers, how decisions about using it will be made, and provide documentation when contingency funds are needed. They should also return unused contingency money at project completion.

Protecting Yourself

Ask potential contractors about their contingency recommendations for your specific project. Older Ottawa homes typically need higher contingencies (15-20%) while newer builds in areas like Kanata or Barrhaven might only need 10%. Get this discussion in writing as part of your contract, including how contingency decisions will be communicated and approved.

For major renovations requiring City of Ottawa permits, remember that code upgrades discovered during inspection aren't optional - they're required for permit approval. Having contingency funds available prevents these necessary improvements from derailing your entire project.

For expert guidance on renovation planning and realistic budgeting for Ottawa projects, visit Justyn Rook Contracting for detailed renovation advice.