What does 'contingency' mean in a renovation quote?

A contingency in an Ottawa renovation quote is extra money (typically 10-20% of the project cost) set aside to cover unexpected issues that might be discovered once work begins.

When contractors open up walls, floors, or ceilings in Ottawa's older homes, they often find surprises - outdated wiring that doesn't meet current Ontario Building Code standards, plumbing that needs updating to pass City of Ottawa inspections, or structural issues that weren't visible during the initial assessment. The contingency fund covers these unforeseen costs without derailing your project.

How Contingencies Work in Ottawa Projects

A reputable Ottawa contractor will include a contingency line item in their quote, clearly stating what percentage it represents and what types of issues it covers. For example, a $30,000 bathroom renovation might include a $4,500 contingency (15%) specifically for "unforeseen structural, plumbing, or electrical issues discovered during demolition."

The key difference between honest contractors and those trying to take advantage is transparency. Good contractors explain that if the contingency isn't needed, you don't pay it. Some contractors will even break down potential scenarios - "if we find knob-and-tube wiring that needs ESA-compliant replacement" or "if floor joists need reinforcement to meet current Ontario Building Code requirements."

What Ottawa Contingencies Typically Cover

In Ottawa's housing stock, contingencies often address issues common to our climate and building history. This includes foundation settling from freeze-thaw cycles, outdated electrical systems that need ESA compliance updates, or plumbing that doesn't meet current City of Ottawa standards. Contingencies might also cover permit modifications - if initial plans need changes once actual conditions are revealed, requiring amended submissions to City of Ottawa Building Code Services (613-580-2424).

Red Flags Around Contingencies

Be wary of contractors who either refuse to include contingencies ("we never run into problems") or who set them unreasonably high (over 25% without clear justification). Also watch for vague language like "miscellaneous costs" instead of specific explanations of what the contingency covers.

Some contractors use contingencies as profit padding, automatically charging the full amount regardless of whether issues arise. Insist on documentation for any contingency spending, including photos of discovered problems and revised permit requirements from the City of Ottawa.

Protecting Yourself

Ask contractors to specify exactly what their contingency covers and get written agreement that unused contingency funds will be returned or credited. For major renovations requiring City of Ottawa permits, consider having a pre-renovation inspection by a qualified professional to minimize surprises that could eat into contingency funds.

Remember, legitimate contingencies protect both you and your contractor from the realities of renovation work in Ottawa's diverse housing stock, from century homes in the Glebe to 1970s builds in Kanata.