How Contractors Actually Build a Quote
(From the Inside)

A homeowner in Westboro called us last month after getting a kitchen quote from a friend's brother-in-law. Two pages. One lump-sum number. No scope, no allowances, no schedule. She said it felt simple, but something about it bothered her.

It should have. A real Ottawa kitchen quote is 8 to 14 pages and takes 8 to 16 hours to build. The two-page version isn't simpler. It's a guess wrapped in confidence.

Here's what actually goes into a contractor's quote when it's done properly. If you've ever wondered why one company's price is far higher than another's for what looks like the same kitchen, this is where the difference lives.

Step 1: The site measure (1 to 3 hours on site)

Nothing accurate gets quoted from a phone call. The first real step is a site measure. We bring a laser, a tape, a notepad, and a camera. We measure room dimensions to the eighth of an inch, ceiling heights at four corners (1920s Glebe houses are rarely level), window rough openings, door swings, plumbing stack location, electrical panel position, and HVAC supply runs.

For an Ottawa kitchen we also pop a baseboard at the floor to see what's under the existing finish, look in the basement for the joist direction (which dictates whether an island can have a sink), and check the panel for available breaker space. That's 90 minutes minimum, and it tells us more than the homeowner usually expects.

Step 2: Scope of work document (2 to 4 hours)

Before any pricing happens, we write a scope of work. It's a 3 to 6 page document that lists, in order, every task the project requires. Demolition. Disposal. Framing changes. Electrical rough-in. Plumbing rough-in. Drywall. Trim. Cabinet install. Counter template. Counter install. Backsplash. Paint. Punch list.

Each line gets two columns: who does it (us, sub, homeowner) and what's included. "Electrical rough-in" alone might be 11 sub-items: panel work, new circuits for the cooktop, hood, dishwasher, fridge, microwave drawer, can lights, under-cab lighting, two USB outlets, switch relocations, and exterior receptacle if applicable.

This document is what makes a quote a contract instead of a wish.

Step 3: Materials takeoff (3 to 6 hours)

Now we count things. Square feet of drywall. Linear feet of trim. Sheets of plywood. Cabinet boxes by size. Counter slab area plus 8% to 12% waste. Tile square footage plus 15% waste plus mortar and grout coverage. Lighting fixture count. Outlet count. Switch count. Faucet, sink, disposal, hood vent run, supply lines, drain lines.

For the actual products, we either spec them by name (Bosch 800 dishwasher, Riobel Salomé faucet) or list them as priced allowances. The takeoff feeds directly into the dollar number. A good takeoff prevents the "I forgot to include the cabinet end panels" change order three weeks in.

Step 4: Labour days × crew rate (1 to 2 hours)

This is where contractor spreadsheets diverge wildly. We estimate labour in crew-days, and the day rate depends on the trade. A two-man crew is one rate, a finish carpenter working solo is lower, and a cabinet installer with a helper is higher still. Each trade carries its own day rate, and the estimate multiplies the rate by the number of days each task takes.

For a typical kitchen we'd budget: demo (2 days), framing changes (3 to 5 days), drywall (3 days plus 2 for finishing), trim and prep (3 to 4 days), cabinet install (4 to 6 days), backsplash (2 days), paint (3 days), punch (2 days). That's roughly 22 to 30 crew-days. Multiply by the day rate and you have the labour line.

Step 5: Sub quotes (3 to 10 days back-and-forth)

For trades we don't carry in-house, we send the scope to subs and wait for their quotes. Electrician, plumber, HVAC, gas fitter, structural engineer, sometimes tile setter for unusual installs. Each sub gets a copy of our scope so they're quoting the same thing.

Three notes on this stage. First, good subs take 3 to 7 business days to quote. Bad ones quote in an hour and miss things. Second, sub quotes are valid for 30 days, sometimes 60. After that, prices move. Third, the contractor adds a markup of 18% to 35% on top of sub quotes; we'll cover why under "Markup" below.

Step 6: Soft costs (often forgotten on cheap quotes)

Soft costs are everything that isn't a hammer or a 2x4. They include:

• Permit fees: set by the City and scaled to the scope and declared construction value
• BCIN designer: stamped drawings, priced by the complexity of the kitchen
• Structural engineer letter: required if a wall comes down
• Disposal: a 14-yard bin, sometimes two of them
• Site protection: floor protection, plastic walls, dust control
• Project management hours: ordering, scheduling, supplier follow-up, inspection coordination, typically 30 to 80 hours per project
• Insurance allocation: WSIB and liability premiums attributed to the job

If your quote doesn't list soft costs as line items, they're either buried in markup or missing. Both are problems.

Step 7: Markup (the part nobody wants to talk about)

Markup is the contractor's overhead and profit. Office, software, vehicle costs, accounting, marketing, payroll for non-billable staff, training, the showroom, the warranty reserve. It's not pure profit; most of it is the cost of running an actual business that will be there in three years to honour the warranty.

Standard markup on materials in Ottawa is 15% to 25%. On subs, 18% to 35%. On contractor's own labour, 25% to 50% (because labour also has to absorb downtime, payroll taxes, vacation, sick, and WSIB). A "10% markup" contractor is either lying to you or going out of business.

Step 8: Contingency (the line you want to see)

Contingency is a budget reserve for the unknowns we can predict but can't itemize: rotted subfloor under the dishwasher, knob-and-tube discovered during demo, a chimney we didn't know was there. On a kitchen we recommend 5% to 8% contingency. On a basement legalization, 8% to 12%. On an addition, 8% to 15%.

A quote with no contingency line means one of two things: the contractor is absorbing the risk (rare), or the contingency is hidden in markup and you'll never see it returned if it's not needed. Spelled-out contingency that returns to you if unused is the homeowner-friendly version.

Why a 2-page quote is dangerous

A two-page quote isn't simpler. It's missing the work that should have been done before pricing. If a contractor hands you a one-line scope and a single number, what they're really saying is "I'll figure it out as I go, and you'll pay for whatever I find."

That's how a tidy lump-sum number balloons by week eight. The number wasn't wrong on day one; it was just incomplete. The contractor got paid to learn your house at your expense.

If your quote is shorter than your IKEA receipt, you're not buying a renovation. You're buying a starting line.

What a real quote looks like

A proper Ottawa renovation quote includes, at minimum:

1. Cover page with project address, scope summary, and total fixed price
2. Detailed scope of work, room by room, task by task
3. Materials list with brands, models, finishes, and quantities
4. Allowances clearly named with what they buy at a specific supplier
5. Schedule with start, key milestones, and substantial completion date
6. Payment schedule tied to inspections or installed milestones, not calendar dates
7. Change-order policy in plain language
8. Warranty terms and what's covered for how long
9. Insurance and WSIB certificates attached
10. Soft costs broken out as line items
11. Contingency stated as a percentage with rules for use

If you want this kind of quote for your project, that's exactly how we do Ottawa project estimating. We charge a small refundable design retainer to do it right, and we credit it against the contract if you sign with us. Free quotes, by definition, can't afford this much work, which is why they're so often wrong.

The next time someone hands you a one-page quote and a friendly handshake, ask one question: "Can I see your scope of work?" The answer tells you everything you need to know about the next 12 weeks of your life.