How to compare contractor estimates
Summary
Compare estimates line by line on the same scope. Check what is excluded, who files permits, how payments are scheduled, and whether the contractor is licensed and insured. The lowest price often omits items.
Compare estimates on the same scope
Give every contractor the same description, photos and measurements. If one estimate is much lower, look for what is missing before assuming it is a better deal.
What a complete estimate includes
- Work broken into clear line items
- Allowances, with amounts, for items you have not yet selected
- What is not included, in writing
- Who files and pays for permits and inspections
- Expected start date and duration
- Payment schedule tied to progress
Verify the contractor
- NYC Home Improvement Contractor license from DCWP (opens an external site) for home and apartment work, searchable online
- Master electrician or master plumber license (opens an external site) for electrical or plumbing work
- Certificate of insurance sent directly by the contractor's insurance broker or agent
- A contract in writing before work or large payments
Payments and changes
New York State law sets requirements for home improvement contracts (opens an external site), including how a deposit must be protected. Ask each contractor how the deposit will be held. Any change during the job should be priced and signed before the additional work is done. If the work is for a rental or business property, ask for a Form W-9 before the first payment; work done only on the home you live in does not call for a Form 1099-NEC, but if you rent out part of the building or run a business from it, ask your CPA. Our guide explains the 2026 rules.
Frequently asked questions
How many estimates should I get?
Two or three estimates for the same scope are usually sufficient.
Is a verbal quote enough?
No. The scope, price and payment terms should be in writing before work starts.
Sources
3 sources
- Check License (opens an external site)NYC Department of Consumer and Worker Protection
- Know Your Construction Professional (opens an external site)NYC Department of Buildings
- General Business Law § 771: Home improvement contract provisions (opens an external site)New York State Senate
This guide reflects our experience and our interpretation of the rules as of the date it was published or last updated. Regulations, codes, incentives and the way agencies enforce them change often, and our interpretation may be incomplete or wrong. It is general information, not legal, engineering, tax or financial advice. Consult the relevant agency and a licensed professional before you plan, purchase or begin any work. Reading this guide does not make you our client and does not create any contractor, consulting or advisory relationship. Outstanding Construction Inc is not liable for any loss arising from the use of or reliance on this content, and is responsible only for work performed under a written contract signed with us.