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

In Ottawa's construction industry, an estimate is a rough ballpark figure that can change, while a fixed-price quote is a binding commitment to complete specific work for an exact price.

Understanding this difference is crucial when hiring contractors in Ottawa, as it affects your budget planning and legal protections under Ontario's Consumer Protection Act.

Estimates: Rough Guidelines Only

An estimate is essentially an educated guess based on preliminary information. Ottawa contractors typically provide estimates during initial consultations when they haven't fully assessed the scope of work. The estimate might say "approximately $15,000-20,000 for your bathroom renovation" but comes with disclaimers that the final cost could vary significantly.

Estimates are not legally binding in Ontario. They're meant to give you a general idea of costs so you can decide whether to proceed with getting detailed quotes. Smart Ottawa homeowners use estimates to narrow down their contractor list and set realistic budget expectations, but never make final decisions based on estimates alone.

Fixed-Price Quotes: Your Protection

A proper fixed-price quote is a detailed, written commitment that locks in the price for specifically described work. In Ottawa, this should include exact materials specifications, labor costs, permit fees (remember, City of Ottawa building permits range from $100-2000+ depending on your project), and completion timeline.

Under Ontario law, once you accept a written quote, it becomes a binding contract. The contractor cannot increase the price unless you agree to changes in writing. This protects Ottawa homeowners from the common scam where contractors lowball estimates then demand more money mid-project.

What Your Ottawa Quote Must Include

A legitimate fixed-price quote from an Ottawa contractor should specify:

• Exact scope of work with materials grades and brands


• All permit costs (the contractor should know current City of Ottawa fees)


• Proof of WSIB clearance and liability insurance


• Start and completion dates


• Payment schedule (never pay large amounts upfront)


• ESA or TSSA permit costs if electrical/gas work is involved

Red Flags to Watch For

Be wary of Ottawa contractors who only provide verbal estimates or refuse to put prices in writing. Also suspicious: quotes that seem too low (often missing permit costs or using inferior materials), demands for large upfront payments, or contractors who can't provide their ESA license number for electrical work or TSSA certification for gas work.

Getting It Right in Ottawa

Always get at least three written quotes for comparison. Contact the City of Ottawa Building Code Services at 613-580-2424 to verify permit requirements for your project. Check contractor licenses through esasafe.com for electrical work and tssa.org for gas work.

Remember, the lowest quote isn't always the best value. Focus on contractors who provide detailed, professional quotes and can prove their licensing and insurance through official Ontario channels.

For help finding verified contractors in Ottawa who understand proper quoting practices, check our contractor directory at ottawaconstructionnetwork.com/directory.