Home Renovation Quotes & Service Agreements

Home renovation quotes and service agreements are critical to having a professional and successful home renovation. Due to the time it takes to prepare quotes and service agreements many homeowners and contractors do not have proper quotes or service agreements in place.   These are both integral parts of the project and will definitely contribute to a successful home renovation project.

Home Renovation Quotes

Home renovation quotes are prepared either formally or informally by a contractor based on his or her assessment of your home renovation project.   The quote is an estimate of the labour costs associated with your project.   Material cost estimates may be included in the quote also.    It is important to be sure that you understand what the quote includes and excludes.

Key Parts of Home Renovation Quoteshome renovation quotes

  • Name of client
  • Address of project location
  • Contractor business name, address and phone number
  • Brief outline of renovation project tasks (e.g. plumbing, tiling, light fixture installation, etc.)
  • Labour costs either for each part of the project or one cost for the entire project
  • Material cost may or may not be included but they should be clearly defined if they are included
  • Disposal costs may or may not be included (these can be costly depending on the project size and method of disposal – again this should be clearly defined
  • Date costs in quote are valid until

It is at the point of the quote that the client and contractor may negotiate the project costs and either come to an agreement on the project costs or the client may decide to go with another contractor.   There is no obligation, by either the potential client or the contractor to move forward with the project based on home renovation quotes.

Renovation Contractors Service Agreement

The contractor service agreement is the ‘contract’ between the contractor and the client that specifies the scope, timeline and costs associated with the project.

Key Parts of Service Agreement

  • Name of client and address of project location
  • Contractor business name, address and phone number
  • Contractor HST number/business number
  • Defined scope of the project – specifically what work the contractor will do (e.g the quote should not just say install light fixtures, but rather state the number and type of light fixtures and where or it should not just state paint the bathroom, but rather state how many coats of paint will be applied and who is responsible for purchasing and picking up the paint).
  • Agreed upon costs of the project – labour, materials and disposal costs or just labour – again this needs to be clearly defined to avoid issues or misunderstandings later in the project
  • Include the contractor’s warranty and insurance information
  • State the responsibilities of the client (e.g. clean out bedroom, remove furniture, provide clear access to the workspace, provide a key, etc.)
  • State the responsibilities of the contractor (e.g. clean workspace each evening, use green disposal methods, provide hours of work and contact information)
  • The date that work will begin and the estimated date of completion
  • How project variations will be communicated and managed (e.g. an unforeseen issue arises during the work)
  • State the project payment terms, deposit structure, methods of payment accepted
  • A place for both the contractor and homeowner to sign and date to indicate their acceptance of the terms and conditions of the service agreement

Professional and reliable contractors will provide a professional quote and service contract in writing.      It is critical that the homeowner get all quotes and service agreements in writing.   Some contractors provide quotes over the phone or ‘informally’, sometimes even written on the back of business card.   Home owners are encouraged to go with reputable contractors who provide written, detailed quotes and written service agreement.   The service agreement is for the protection of both the homeowner and the contractor.   More information on protecting your rights as a homeowner during home renovations can be found on the Consumer Protection Ontario website.

The quote and service agreement are 2 critical components of planning and having a successful home renovation project.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>