How to Read a Remodeling Estimate: 9 Red Flags (and Green Lights)

By BlueLadder Builders — CBC1268807 Serving Palm Beach & Polk Counties

Want to avoid surprise change orders? Learn how to read a contractor estimate like a pro so you can compare bids apples-to-apples and protect your budget and timeline.

What a Professional Estimate Should Include

A solid bid is specific, transparent, and verifiable. At minimum, you should see:

• A clear scope of work broken down by trade (demo, electrical, plumbing, drywall, finishes, etc.)

• Explicit inclusions and exclusions

• Realistic allowances for materials you’ll select (tile, fixtures, hardware)

• Line items for permits, dumpster/haul-off, jobsite protection, and daily cleanup

• Schedule milestones and payment draws tied to visible progress

• Warranty terms and a defined punch-list process

• Contractor license/insurance and contact info

The 9 Red Flags (and the Green Lights to Look For)

1) Vague Scope = “Kitchen Remodel … $XX,XXX”

Red flag: A single lump sum with no detail. Green light: Itemized scope by trade and task (e.g., demo, rough-ins, cabinets, tops, tile, paint). You can see what you’re paying for—and compare bids line-by-line.

2) Missing Inclusions/Exclusions

Red flag: No list of what isn’t included (appliance install, drywall texture, trim, HOA fees).Green light: Both Inclusions and Exclusions in writing. Gray areas become change orders; clarity saves money.

3) Unrealistic Allowances

Red flag: Tiny numbers that don’t match your taste (e.g., tile allowance at $2.50/sf when you want $6–$9/sf porcelain).Green light: Allowances based on local market pricing and your inspiration photos. Ask how they were set.

4) “TBD” on Key Cost Drivers

Red flag: “TBD” for panel upgrades, venting, structural fixes—anything likely to appear. Green light: Reasonable contingencies and defined unit prices:“Panel upgrade (if required): $X,” “Unforeseen framing: $Y/hr + materials, owner approval required.”

5) No Permits, Dumpster, or Protection Lines

Red flag: Nothing for permits, debris, floor protection, dust control, or daily cleanup. Those costs show up later. Green light: Separate lines for permit fees, dumpster/haul-off, surface protection, HEPA air filtration, and daily cleanup.

6) Front-Loaded Payments

Red flag: 50% down before materials are ordered, or large draws not tied to progress. Green light: Fair draws tied to milestones (e.g., demo complete, rough-ins passed, cabinets set, tops installed, finals/punch).

7) No Schedule or Milestones

Red flag: “~8 weeks” with no detail. Green light: A simple timeline with milestone dates (demo → rough-ins → inspections → cabinets → template → tops → tile → finals) plus a two-week look-ahead.

8) One-Line Warranty

Red flag: “1-year warranty” with no scope. What’s covered? Labor only? Hardware? Caulk/grout?Green light: Written workmanship warranty + manufacturer warranties (cabinets, windows/doors, fixtures) and how to submit a claim.

9) No Punch-List or Change-Order Process

Red flag: Nothing about how quality issues get resolved or how changes are priced. Green light: A punch-list walkthrough before final payment and a change-order policy (priced and approved in writing before work proceeds).

What Belongs in “Permits, Protection & Cleanup”

• Permits & inspections: Who pulls them, expected fees, which inspections are included

• Jobsite protection: Floor protection, dust walls, vent covers, HEPA air scrubbers

• Cleanup: Daily broom clean, debris haul-off, final clean

• Repairs: Stucco/drywall/paint blends after window/door or layout changes—called out clearly

Smart Schedule & Payment Draws (Example)

Sample 6-draw schedule tied to visible progress:

1. Contract signed + selections locked – 10%

2. Demo complete; rough-ins started – 20%

3. Rough-ins passed inspections – 20%

4. Cabinets set; countertops templated – 20%

5. Countertops installed; tile/trim underway – 20%

6. Final inspections passed; punch complete – 10%

(Your project may differ; the key is tying payments to work put in place.)

Warranty & Punch-List: What “Good” Looks Like

• Workmanship warranty: Minimum 1 year on labor/installation quality

• Manufacturer warranties: Provided for cabinets, appliances, windows/doors, fixtures

• Punch-list process: Joint walkthrough, written list, completion window (e.g., 7–14 days), and clear criteria for “substantial completion”

Side-by-Side Estimate Snippet: Bad vs. Good

Bad (vague)

• Kitchen remodel …………………………… $58,000

• Materials included

• Timeline ~8 weeks

• 50% deposit

Good (clear)

• Demo & protection (dust walls, floor protection, haul-off) … $3,200

• Electrical rough (2 new circuits, U/C lighting, GFCI/AFCI) … $4,600

• Plumbing rough (sink move 3’, DW, ice line) ………………… $3,900

• Cabinetry (Semi-custom, soft-close; 32 LF @ $750/LF) ……… $24,000

• Countertops (Quartz L3, 84 sf @ $85/sf incl. template/install) … $7,140

• Backsplash tile (labor + materials; allowance $8/sf) ……… $2,200

• Appliance install (HO-supplied; range, DW, hood) ………… $1,250

• Paint & trims (walls, ceiling, base, caulk) …………………… $1,650

• Permits & inspections (city fees + admin) …………………… $1,100

• Cleanup & final punch ………………………………………… $960

• Exclusions: Appliance supply, under-cab strip lights (fixture supply), structural changes

• Allowances: Backsplash $8/sf; sink/faucet $700; hardware $400

• Schedule: 8 weeks with milestone dates

• Draws: 10/20/20/20/20/10 tied to progress

• Warranty: 1-yr workmanship; manufacturer warranties attached

Use this format to compare multiple bids and ask smart follow-ups where numbers differ.

Final Thought

Clear estimates prevent surprises. If a contractor can’t explain their numbers—or won’t—consider that your first change order.