Most homeowners get two or three estimates for a renovation project and then try to compare them. The problem is that estimates written by different contractors often aren't comparing the same things. One estimate might include permit fees; another might not. One might specify the tile brand and format; another might say 'tile as selected.' Here's how to read an estimate so you're actually comparing apples to apples.

Line items vs. Lump sums

A well-written estimate breaks the project into line items: demolition, framing, drywall, tile, fixtures, labor, permits, and so on. A lump-sum estimate. 'kitchen renovation: $24,000'. Tells you very little about what's included and makes it nearly impossible to compare with other bids. When you receive a lump-sum estimate, ask the contractor to break it down. A contractor who can't or won't do that is worth being cautious about.

What 'allowances' mean

Many estimates include allowances. A set dollar amount for a category of materials that haven't been selected yet. 'Tile allowance: $4.50/sq ft' means the estimate assumes you'll choose tile at that price point. If you choose tile at $9.00/sq ft, the project cost goes up accordingly. Allowances are a normal part of renovation estimating, but you need to understand what they are and whether they're realistic for the products you want. Ask the contractor what products they had in mind when they set the allowance.

Permits and inspections

Permit fees should appear as a line item in any estimate for work that requires a permit. If they're not listed, ask whether permits are included. Some contractors exclude permits from their estimates and present them as an additional cost later. At Cornerstone, permit fees are always included as a line item so there are no surprises. In Whatcom County, permit fees for a typical kitchen renovation run $400 to $900 depending on the scope of work.

What to ask before signing

Before signing any renovation contract, ask these questions: What is the payment schedule? (Avoid any contractor who asks for more than 30 to 40 percent upfront.) What is the process if something unexpected is found during demolition? Who are the subcontractors and are they licensed? What is the warranty on labor? These aren't adversarial questions. Any contractor who's done this work honestly will have clear answers to all of them.

A renovation estimate is a document that protects both parties when it's written well. If you'd like to see an example of how we structure our estimates, ask us when you schedule a walkthrough. We're happy to walk through the format before you commit to anything.