What Is Included in a Remodeling Estimate

The short answer

What is included in a remodeling estimate should be written down: the scope of work for each area, the materials or allowances, who pulls permits, what is excluded, how changes are priced and how payments follow progress. If an estimate is a single line with a total, it is not complete enough to compare or to rely on.

An estimate is not the same as a contract. The estimate prices the work. The contract is the signed agreement, and California law sets rules for what it must contain. We cover the contract below because the two documents should match.

Scope of work

This is the core of the estimate. It should describe what will be done in each room or area in plain words. Look for the steps that are easy to leave out:

Demolition and haul-away of debris
Framing or structural changes
Plumbing and electrical work, including moving fixtures, outlets or switches
Insulation and drywall, including taping, texture and paint
Tile, flooring, cabinets, countertops and trim
Final cleaning

Vague wording such as "update the bathroom" leaves room for disagreement later. "Remove the existing tub and install a new shower, with tile on the walls and floor" does not.

Materials and allowances

Not every item is chosen when the estimate is written. For those, estimates use allowances: a set amount for an item, such as tile, fixtures or lighting. Allowances are fair, but only if they are realistic. A very low allowance makes the total look good, and then the real selection costs more and the difference lands on you.

Ask for each allowance by name. Ask who buys the item, what is covered besides the item itself, and what happens if your choice costs more or less. Compare allowances between estimates before you compare totals. The more your selections are made before pricing, the less guessing is built in. That is one reason to settle choices early, as in how to prepare for a home remodel.

Exclusions and who does what

A good estimate also says what is not included. Common exclusions are appliances, permit fees, design or engineering, repair of hidden damage, and painting of areas outside the work zone. None is wrong by itself. It becomes a problem when one estimate includes an item and another silently leaves it out.

Check also who is responsible for each part. Does the contractor order the materials, or do you? Who hires the countertop fabricator? Who is on site and who do you call? Our guide on how to choose a remodeler lists more questions of this kind.

Permits and inspections

The estimate should say whether permits are needed and who pulls them. CSLB lists who pulls permits among the items a home improvement contract should state. If permit fees are excluded, you should know that before you compare totals. Permits are covered in do renovations need permits.

Unknowns and change orders

Every remodel has some. Behind a wall there may be damaged framing, old piping or wiring that does not meet current needs. A trustworthy estimate says how these will be handled. Usually that means the contractor stops, tells you what was found, prices the fix in writing and waits for your approval before going on.

That written approval is a change order. CSLB recommends that changes to the project be put in writing as change orders. Do not agree to changes by text or by word of mouth only, and do not let a verbal change turn into a larger bill. For older houses, where surprises are more likely, see remodel or repair an older home.

Payment terms and the contract

The estimate and the contract should agree on payments. In California, the down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less, with an exception for contractors who have a certain bond on file with CSLB. If payments are made in stages, the contract must include a schedule of progress payments that ties each payment to specific work, and CSLB says payments should not exceed the value of the work done. A written contract is required for home improvement work above a small threshold, and you should receive a copy signed and dated by both parties before work starts. For most contracts you have a few business days to cancel.

Be careful with any estimate that asks for a large amount before work begins, or that does not connect payments to progress.

How to compare estimates

Put the estimates side by side and match them item by item, not total by total.
Mark anything one includes and another omits.
Compare allowances for the same items.
Ask each contractor how unknowns and changes are handled.
Check licenses and insurance before you decide.

A bigger, more detailed estimate is often the more honest one. Our estimates are free, and we are glad to explain every line. For larger jobs see whole house renovation cost factors, or read about our remodeling and general contractor services.

Remodeling estimates: questions

What should a remodeling estimate include?

A written description of the work room by room, the materials or allowances for them, who handles permits, what is excluded, how changes are handled and how payments are tied to progress.

What is an allowance?

A set amount in the estimate for an item that has not been chosen yet, such as tile or light fixtures. If your selection costs more than the allowance, the difference is added. If it costs less, you should get the difference back.

Why are two estimates for the same project so different?

They usually cover different work. Compare the scope line by line: demolition, disposal, trades, permits, allowances and finish work. A lower total often leaves something out.

What is a change order?

A written agreement to change the scope, with the price and any effect on the schedule stated before the work happens. It protects both sides and keeps the final bill from being a surprise.

Is an estimate the same as a contract?

No. An estimate describes and prices the work. The contract is the signed agreement. California law spells out what a home improvement contract must contain, and you should have a signed copy before work begins.