What is the difference between an estimate and a fixed-price quote?

In Ottawa, an estimate is a rough ballpark figure that can change, while a fixed-price quote is a binding commitment to complete the work for that exact amount.

Understanding this difference is crucial when hiring contractors in Ottawa because it affects your budget planning and legal protection. Here's what you need to know:

Estimates - Rough Guidelines Only

An estimate is essentially an educated guess based on the contractor's initial assessment of your project. In Ontario, estimates are not legally binding and can fluctuate significantly as work progresses. The contractor might discover unexpected issues like outdated wiring behind walls or structural problems that weren't visible during the initial walkthrough.

Most reputable Ottawa contractors will provide estimates for free during the initial consultation phase. However, these numbers should be treated as starting points for budget planning, not final costs. It's common to see estimates vary by 20-30% from the final bill, especially for renovation work in older Ottawa homes where surprises are frequent.

Fixed-Price Quotes - Binding Commitments

A fixed-price quote, also called a firm quote, is a legally binding agreement in Ontario. Once you accept it, the contractor must complete the specified work for that exact amount, regardless of minor complications they encounter. This provides significant protection for Ottawa homeowners who want cost certainty.

However, fixed quotes typically come with detailed conditions. The contractor will specify exactly what's included and excluded, and any changes to the scope (called "change orders") will trigger additional costs. For example, if you decide mid-project to upgrade from standard to premium fixtures, that's outside the original quote.

Getting Reliable Quotes in Ottawa

When requesting quotes from Ottawa contractors, insist on detailed written documents that specify materials, labor, timeline, and what triggers additional costs. Reputable contractors will visit your property, take measurements, and sometimes even open walls to assess conditions before providing a firm quote.

For projects requiring City of Ottawa building permits, make sure the quote includes permit costs and clearly states who's responsible for obtaining them. Permit fees in Ottawa range from $500-$5,000+ depending on project scope, and delays can occur if permits aren't properly handled.

Red Flags to Watch For

Be cautious of contractors who provide fixed quotes without thoroughly examining your property, especially for renovation work in Ottawa's older neighborhoods like the Glebe, Westboro, or Sandy Hill. Also avoid contractors who ask for large upfront payments - Ontario's Construction Lien Act allows you to hold back 10% for 60 days after completion.

Always verify that quoted contractors have proper WSIB coverage and appropriate licensing through ESA (electrical work) or TSSA (gas/HVAC work) before accepting any quote.

For finding verified contractors who understand proper quoting practices, check our contractor directory at https://justynrookcontracting.com/directory. The City of Ottawa Building Code Services (613-580-2424) can also help verify permit requirements that should be included in comprehensive quotes.