Why are contractor quotes so different from each other?

Contractor quotes in Ottawa can vary dramatically - sometimes by 50-100% or more - and understanding why helps you make better hiring decisions rather than just picking the lowest price.

The biggest factor is what's actually included in each quote. Some contractors provide bare-bones pricing that covers only basic materials and labor, while others include comprehensive project management, permits, cleanup, and contingencies. In Ottawa's market, you'll often see quotes that look like apples-to-oranges comparisons because one contractor assumes you'll handle permits yourself, while another includes the full City of Ottawa permit process and fees.

Material quality creates huge price differences. One contractor might quote basic builder-grade materials while another includes premium options. Labor costs vary significantly based on the contractor's skill level, insurance coverage, and business model. A fully licensed, WSIB-covered contractor with ESA certification will typically charge more than someone operating without proper credentials - but you're paying for protection and quality.

Project scope interpretation is another major factor. When you ask for a "bathroom renovation," one contractor might assume you're keeping the existing layout and just updating fixtures, while another prices a complete gut renovation with new plumbing and electrical. Without detailed specifications, contractors make different assumptions about what you want.

Overhead and business models create substantial pricing differences. Established Ottawa contractors with proper insurance, bonded employees, and professional offices have higher overhead than someone working out of their truck. The contractor who's properly registered with WSIB, carries adequate liability insurance, and maintains ESA licensing has legitimate business costs that get reflected in pricing.

Some contractors deliberately underbid to win jobs, planning to make up costs through change orders later. Others include realistic contingencies upfront. The contractor quoting $15,000 for your kitchen might hit you with $8,000 in "unexpected" costs, while the one who quoted $20,000 delivers on budget.

Timeline expectations also affect pricing. Rush jobs cost more, and contractors who can start immediately often charge premium rates. Those with full schedules might quote higher to compensate for disrupting their workflow.

What to watch for when comparing Ottawa contractor quotes:

Make sure each quote includes the same scope of work, materials specifications, and timeline. Verify that permits and City of Ottawa fees are handled consistently across quotes. Check that each contractor is properly licensed (ESA for electrical, TSSA for gas work), carries WSIB coverage, and has adequate insurance.

Be suspicious of quotes that are dramatically lower than others - they're often missing important elements or come from contractors who plan to increase costs later. The lowest quote frequently becomes the most expensive project when change orders pile up.

Ask each contractor to break down their quote so you can compare line items. A legitimate contractor should explain what's included and why their pricing reflects the value they provide.

For permit requirements and fees in Ottawa, contact Building Code Services at 613-580-2424 or check ottawa.ca/building. This helps you verify that contractors are including accurate permit costs in their quotes.

Remember: the goal isn't finding the cheapest contractor, it's finding the best value from a properly licensed, insured professional who will complete your project correctly and on budget.