How to read a contractor's quote

What every line on an estimate means, and how to compare two quotes fairly.

Labor vs. materials

Most quotes split labor and materials. Labor is often 40–60% of home projects. If a quote is a single lump sum, ask for the breakdown so you can compare apples to apples.

Scope and exclusions

The most expensive surprises come from what's not included — permits, disposal, repairs to hidden damage. Make sure exclusions are listed.

Allowances

An 'allowance' is a placeholder budget for items you haven't picked yet (like tile or fixtures). Low allowances make a quote look cheaper than the real cost.

Payment schedule

Tie payments to milestones, not dates. You want leverage until the work is actually done and inspected.