What should be included in a contractor's written estimate?

A professional contractor's written estimate should include detailed project scope, materials specifications, labor costs, timeline, and clear terms and conditions to protect both parties and ensure project success.

A comprehensive written estimate serves as the foundation for your renovation project and helps prevent costly misunderstandings down the road. In the competitive Toronto construction market, detailed estimates also help you make informed comparisons between contractors and understand exactly what you're paying for.

Essential Project Details should include a complete scope of work describing every task to be performed, from demolition through final cleanup. The estimate should specify materials by brand, model, and quality level rather than vague terms like "standard fixtures." For example, instead of "bathroom vanity," it should read "48-inch Kohler Archer vanity in white with Carrara marble countertop." This specificity prevents contractors from substituting inferior materials and gives you realistic expectations for the finished project.

Financial Breakdown must clearly separate labor costs from materials, including applicable HST on the total amount. In Toronto's current market, expect detailed line items showing hourly rates for different trades - skilled carpenters typically charge $45-65/hour, while specialized trades like electricians command $80-120/hour. The estimate should also outline the payment schedule, typically structured as a small deposit (never more than 10% or $1,000), progress payments tied to completion milestones, and final payment upon satisfactory completion. Avoid contractors demanding large upfront payments, as this is often a red flag.

Timeline and Logistics should specify start and completion dates, working hours (especially important in Toronto's noise bylaws), and who handles permit applications. For projects requiring City of Toronto building permits, the estimate should clarify whether permit fees are included and who manages the application process. The contractor should also specify cleanup responsibilities, material storage locations, and how they'll protect your property during construction.

Legal Protections are crucial in Ontario's regulatory environment. The estimate should include the contractor's WSIB number, liability insurance details, and any applicable licensing numbers (ESA for electrical work, TSSA for gas work). It should also reference compliance with the Ontario Building Code and specify warranty terms for both labor and materials. Many reputable contractors offer 1-2 year warranties on workmanship and pass through manufacturer warranties on materials.

Change Order Procedures should be clearly outlined, as most renovation projects encounter some modifications. The estimate should specify how additional work will be priced and approved, requiring written authorization for any changes over a certain dollar amount (typically $500-1,000). This protects you from surprise charges and ensures transparency throughout the project.

Next Steps include reviewing multiple detailed estimates, checking references, and verifying insurance and licensing before signing any contracts. Never accept verbal estimates or vague proposals - insist on written documentation that you can reference throughout the project. A contractor who provides a thorough, professional estimate demonstrates the attention to detail you want in your renovation work.

Browse verified contractors who provide comprehensive written estimates in our Toronto Construction Network directory to ensure you're working with professionals who understand proper documentation and project management.