How to read a contractor quote, line by line

A good quote is a short description of the job, not just a price. Read it with a pen and mark anything you would have to guess about. Every guess is a place where the final bill can grow.

What a complete quote includes

• The contractor's legal business name, address, phone and license number (in states that license that trade)
• Your address and the date, plus how long the price is good for
• A scope of work: what will be done, room by room or step by step
• Materials, with brand, model, size or grade where it matters
• Labor and materials either itemized or clearly included in one price
• Permits and inspections: who gets them and who pays
• Demolition, haul-away and cleanup
• Schedule: start date and expected finish
• Payment schedule tied to completed work, not dates
• Warranty terms for workmanship and for materials
• How changes are handled (written change orders with a price, signed before the work is done)

Phrases to ask about

• "Allowance": a placeholder amount for something you'll choose later, such as tile. Ask what it buys, and know you pay any difference.
• "As needed" or "if required": ask for a price per unit (per sheet of plywood, per foot of pipe) so surprises are capped.
• "Standard" materials: ask which brand and model.
• "T&M" (time and materials): ask for an hourly rate, a markup on materials and a not-to-exceed amount.
• "Excludes": read this list carefully. It's where permits, drywall repair and painting often hide.

Check the math and the money

Add up any line items yourself. Check whether sales tax is included. Compare the deposit to your state's rules; some states cap home improvement deposits. And make sure the payment schedule leaves a meaningful final payment until the work is finished and inspected.

General information, not legal, financial or construction advice. Prices and rules vary by state and city. Affordable Home Assistance doesn't take referral fees or payments from any contractor, lender or brand.