Why Does One Contractor’s Quote Seem So Much Higher Than Another’s?
- Michael Smego
- 6 minutes ago
- 3 min read
When planning a renovation, addition, bathroom remodel, or deck, many homeowners are surprised by how widely contractor quotes can vary.
Two proposals for what appears to be the same project can differ by thousands — sometimes tens of thousands — of dollars.
So what causes the gap?
Understanding the variables behind contractor pricing helps homeowners evaluate proposals more clearly and confidently.
1. Scope of Work May Not Be Identical
Even if two contractors are pricing “the same project,” the actual scope may differ.
One proposal may include:
Permits and inspections
Detailed waterproofing systems
Higher-grade materials
Structural upgrades
Cleanup and disposal
Another may exclude some of those items.
Without reviewing line items carefully, it can appear that one contractor is simply more expensive — when in reality, the scope is different.
2. Permits and Code Compliance
In Central Pennsylvania, many projects require:
Zoning approval
Building permits
Inspections
A contractor who builds to code will include:
Permit application time
Inspection coordination
Required structural upgrades
If permits are not included in a quote, the price may appear lower — but the responsibility and risk may fall on the homeowner.
3. Materials and System Quality
Surface materials may look similar at first glance, but the systems behind them can vary significantly.
For example:
In bathroom projects:
Basic backer board vs. full waterproofing systems
Standard drain installation vs. integrated membrane systems
In decks:
Minimum span framing vs. reinforced structural layouts
Entry-level materials vs. premium composite systems
Higher-quality systems increase upfront cost but often improve longevity and reduce future repair risk.
4. Labor Experience and Supervision
Construction quality depends heavily on:
Installer experience
Supervision standards
Attention to detail
Companies that maintain:
Skilled crews
Ongoing training
On-site supervision
May carry higher labor costs — which are reflected in pricing.
5. Insurance and Business Overhead
Properly operating construction companies carry:
General liability insurance
Workers’ compensation coverage
Licensing requirements
Administrative support
These costs are built into responsible pricing models.
Lower overhead may result in lower bids — but it may also reduce protection for homeowners.
6. Warranty and Accountability
A contractor’s pricing may reflect:
Written warranty coverage
Post-project support
Willingness to stand behind the work
Long-term accountability carries cost — but it also provides peace of mind.
7. Structural Standards
Projects built to minimum standards may cost less upfront.
Projects built with reinforced structural practices may cost more initially but offer greater long-term durability.
For example:
Deck footings dug to proper frost depth (42 inches locally)
Framing sized conservatively rather than minimally
Proper flashing and moisture control systems
These details are often invisible in the finished product but significantly impact longevity.
Why the Lowest Price Isn’t Always the Best Value
A lower quote does not automatically indicate poor quality.
However, when large price gaps exist, it is important to ask:
What is included?
What is excluded?
Are permits being pulled?
What systems are being installed?
What happens if something fails?
Understanding these factors allows homeowners to compare proposals more accurately.
Final Thoughts
Wide pricing differences between contractors are rarely random.
They typically reflect variations in:
Scope
Materials
Structural standards
Compliance
Labor experience
Business practices
When evaluating bids, homeowners benefit from looking beyond the bottom line and focusing on long-term value, durability, and accountability.
The right contractor should be able to explain not just the price — but the reasoning behind it.
Comments