What markup is normal for contractors on materials in Ottawa?

Most Ottawa contractors mark up materials between 10-20%, though this varies significantly based on the contractor's business model and project type.

In Ottawa's construction market, you'll encounter different approaches to material pricing. Some contractors operate on a "cost-plus" model where they show you actual material costs and add a transparent markup (typically 10-15%). Others include materials in their overall project pricing without breaking down the markup separately.

How Ottawa Contractors Handle Material Costs

The markup covers more than just profit - it includes the contractor's time to source, order, coordinate delivery, handle returns, and manage warranties. Established Ottawa contractors often have trade accounts with suppliers like Home Depot Pro, Lowes Pro, or local suppliers like Rideau Lumber or Capital City Lumber, which can actually result in better pricing than retail even with markup.

For larger renovations in Ottawa (kitchens $25,000-$80,000, bathrooms $15,000-$50,000), many contractors prefer to quote a total project price rather than itemizing materials separately. This protects both parties - you get cost certainty, and they're not nickel-and-dimed on every material choice.

What to Watch For in Ottawa Quotes

Red flags include markups over 25% or contractors who won't provide material receipts when requested. Be particularly cautious of contractors who demand large upfront payments "for materials" - this is a common scam tactic in Ottawa.

When reviewing quotes, ask Ottawa contractors to clarify their material policy. Reputable contractors will explain whether they're using cost-plus pricing, trade pricing, or project-based pricing. They should also specify who handles material warranties and returns.

Protecting Yourself in Ottawa

Under Ontario's Construction Act, you have rights regarding material costs and change orders. If material prices increase significantly during your project, contractors must notify you before proceeding. Always ensure your contract specifies how material cost overruns will be handled.

For major projects requiring City of Ottawa building permits (613-580-2424), your contractor should provide detailed material specifications that match permit drawings. This prevents surprise upgrades or substitutions that inflate costs.

The key isn't necessarily getting the lowest markup, but working with a licensed, insured Ottawa contractor who's transparent about their pricing structure and provides good value through their trade relationships and project management expertise.

Find verified contractors in our directory at https://ottawaconstructionnetwork.com/directory to compare different pricing approaches from established Ottawa contractors.