How to Compare Whole-House Remodel and Addition Estimates Line by Line

On a whole-house remodel or an addition, two estimates that are far apart are rarely pricing the same project. One includes the drawings, the permits and a new furnace; the other leaves them for later. The only fair comparison is line by line, on the same scope. This page shows what each line should say and which gaps to look for.

Start by making the scopes match

Before you look at totals, write one short scope list and give it to every contractor: the rooms that change, walls that move, systems you want replaced, any addition, and the finish level you have in mind. Then check each estimate against that list. If a contractor recommends something different, that is useful, but ask them to price your scope too so you can compare.

L&I's advice for hiring a contractor is to compare all parts of each bid, not just the price. On a big project that means reading every line.

What a whole-house estimate should include

As a reference, here is what JDI's own whole-home cost calculator says its planning ranges include. Whoever you hire, their estimate should tell you clearly whether each of these is in or out.

The calculator also says what its ranges leave out: add-ons you did not select (for example a new HVAC system or an addition), repairs to hidden damage found inside walls or floors, which are handled by written change order, and furniture, decor and window coverings. A good estimate from anyone states its exclusions just as plainly.

Allowances: where low bids hide

An allowance is a placeholder budget for something not chosen yet, like tile, plumbing fixtures or lighting. When your final pick costs more, the difference is added to the price. Two estimates can carry very different allowances for the same item, and the one with lower allowances looks cheaper until you start choosing.

• Ask for every allowance in dollars, item by item.
• Ask what the allowance buys: a showroom visit or a sample list makes it real.
• Raise low allowances to a realistic level on every estimate before comparing totals.

Sales tax and permit fees

In Washington, remodeling for a homeowner is a retail sale, and the contractor collects sales tax on the full contract price, labor included (WAC 458-20-170). On a whole-house budget that is a large line of its own. L&I recommends that the contract state the price including sales tax, so make sure every estimate shows it the same way. Our sales tax on remodeling page explains the rates and how to look one up by address.

Permit fees vary by project and jurisdiction. In Vancouver, an addition or remodel needs a residential building permit, and an addition submittal includes a site plan, structural drawings and energy code forms. Ask whether the city's fees are inside the price or listed for you to pay.

Exclusions, hidden damage and change orders

Every older house holds surprises: rot under a bathroom, old wiring, an undersized beam. No estimate can price what nobody has seen, so the question is how it will be handled. Look for:

• A clear list of exclusions.
• A written change-order process: the change is described and priced, and you approve it before the work is done.
• How testing for lead paint or asbestos in an older home is handled, and by whom.

Our contracts, deposits and change orders page covers what Washington homeowners should see in writing.

Schedule, team and warranty

Compare the parts that are not dollars too:

• Schedule. A realistic on-site time after design and permits. JDI's calculator gives 4 to 7 months for a standard whole-home refresh and 7 to 14 months for mid-sized and large homes or projects with an addition.
• Who runs the job. A named project manager and how you will get updates.
• Registration. The contractor's Washington registration number (and Oregon CCB number for Portland-side work) on the estimate.
• Warranty. Length and coverage in writing. JDI's is a 5-year written workmanship warranty.

The lowest bid can leave things out

When one estimate is well below the others, it is worth one more conversation before you decide. Ask the contractor to go through what is not included and which allowances are low. Sometimes the low bid really is efficient. Often the gap is design, permits, site protection, HVAC or finish allowances, and those costs come back as change orders once work has started.

Next step

An estimate is only as good as the visit behind it. See what to bring to your first consultation and what happens there, so the estimate you get back is built on your real house.