The 8 red flags on a renovation quote, explained
Eight things that make me slow down when a quote lands on my desk. None of them proves a contractor is crooked. Two or more together means get the quote checked before you sign, by me or by anyone you trust.
These eight are the paperwork half of the 20-Point Check every LevelQuote review runs. They apply to any trade and any province. Where a rule differs by province, the guide says so; the deposit and holdback rules get their own page, province by province.
01 Deposit over 25%
What it looks like on paper
A line near the bottom: "50% due on signing, balance on completion." Sometimes it's dressed up as "materials deposit" with no materials list attached. On a $18,900 roof that's $9,450 before a ladder goes up.
Why it happens
Some of it is habit. Some of it is a contractor who's thin on cash and needs your deposit to pay for the last customer's materials. That's the one that worries me, because if the business folds between your deposit and your start date, you're an unsecured creditor with a hole in your roof. Small outfits with no supplier credit do sometimes need a real materials deposit, and a special-order item (custom windows, a particular tile) is a fair reason to ask for the cost of that item up front.
What to ask
"Can we set the deposit at 10 to 15%, with the balance paid against completed stages? And can the payment schedule leave room for the lien holdback that applies in our province?"
What a fair version looks like
Across the trade, 10 to 25% up front is normal, and the lower end is more common on bigger jobs. The Ontario government goes further and recommends no more than 10%. A fair schedule ties each payment to something you can see: deposit, then a draw when the tear-off or rough-in is done, then another at drywall or shingles, then the balance less the statutory holdback once the lien period has run. Half up front funds their last job, not yours. Try the deposit check on the home page if you want the math done for you.
02 Cash only, or no written contract
What it looks like on paper
Often it doesn't look like anything, which is the point. A verbal price, a text message with a number in it, or a one-page quote with "cash price" and a discount for paying that way. No signature lines, no terms, no company address.
Why it happens
Cash-only usually means the income isn't being reported, and a contractor who skips the tax office tends to skip other paperwork too: the WCB account, the liability policy, the permit. The discount they offer you is their tax saving, shared. It feels like a deal until something goes wrong and you discover you have no contract to enforce, no invoice for a warranty claim, and nothing to show your insurer.
What to ask
"Can you put that in a written contract with your business name, address, GST/HST number and a payment schedule? I'll pay by e-Transfer or cheque."
What a fair version looks like
A written quote on letterhead that becomes the contract when you both sign it, or a short contract that attaches the quote. It names both parties, describes the work, states the total with tax, sets the payment schedule and the dates, and says who pulls the permits. In Ontario, any home renovation contract over $50 has to be in writing by law. Everywhere else, it's not the law, but it's the only thing that protects you. Every dollar should have a document.
03 Pressure to sign today
What it looks like on paper
"This price is good until Friday." "I can only hold the crew if you sign tonight." "Material prices go up Monday." A quote with a 48-hour expiry printed on it, or no expiry but a salesperson who won't leave the kitchen table.
Why it happens
Prices do move, and a busy contractor really does fill their schedule. But a fair contractor tells you that and lets you decide. Pressure is a sales technique, and it's used most by companies that sell renovations the way they sell cars: commission reps, in-home presentations, a "manager's discount" that appears when you hesitate. It works because it stops you getting the second and third quotes that would show you the first one was high.
What to ask
"How long does this quote hold? I'm getting two more and I'll have an answer by [date]." Then watch how they take it.
What a fair version looks like
A quote that holds for 30 days is standard. A contractor who says "take your time, call me with questions" is telling you they expect to win on the work, not the close. If you signed under pressure at home, several provinces give you a cooling-off period on contracts signed at your residence: Ontario's is 10 days on home renovation contracts of $50 or more, and Quebec's rules on itinerant merchants also stop the contractor from taking a deposit in the first 10 days. The rules differ by province, so check yours before you assume.
04 One lump sum, no line items
What it looks like on paper
"Kitchen renovation as discussed: $42,000." Maybe a paragraph of description, maybe not. No breakdown of demolition, cabinets, counters, plumbing, electrical, flooring, paint. No allowances for the things you haven't picked yet.
Why it happens
Some contractors price from experience and don't want to show their margin. Some don't know their own numbers well enough to break them out. Either way, you can't compare what you can't see itemized, and you can't tell whether the number covers disposal, permits, or the tile you haven't chosen. When a lump-sum job goes over budget, there's no line to point at and ask why.
What to ask
"Can you break this out by trade or by stage, with the allowances listed separately? I don't need your margin, I need to see what's in and what's out."
What a fair version looks like
Eight to fifteen lines for most jobs. Labour and materials can be combined per line, but each stage should stand on its own: demolition and disposal, framing, electrical, plumbing, drywall, finishes, fixtures. Allowances (the budget set aside for items you'll pick later) are stated as allowances, with the rule for what happens if you go over. Exclusions are listed too. The best quotes I see have a short "not included" section, and that section is where the honest contractor saves you from surprises.
05 No sales tax shown
What it looks like on paper
A total with no tax line and no GST/HST number anywhere on the page. Or a quote that says "plus applicable taxes" without saying how much. Or, the quiet version, a quote that's lower than the others because it quietly doesn't include tax and the others do.
Why it happens
Two reasons, and you need to know which. The first is sloppy paperwork: the contractor is registered and will add the tax on the invoice. Your quote is really 5 to 15% bigger than it looks, depending on the province. The second is that the contractor isn't registered or isn't reporting, and a cash price with no tax is the tell. A business doesn't have to register for GST/HST until it passes $30,000 in sales over four quarters, so a one-person handyman can legitimately not charge it. A roofing company doing your $18,900 job is past that line many times over.
What to ask
"Is this total with or without tax, and what's your GST/HST number?" A registered business has to put that number on invoices for $100 or more, and you can confirm it in the CRA's GST/HST Registry.
What a fair version looks like
Subtotal, tax at your province's rate, total. On October 31, 2026 that's 14% HST in Nova Scotia, 15% in New Brunswick, Newfoundland and Labrador and PEI, 13% in Ontario, and 5% GST plus any provincial sales tax elsewhere. Quebec quotes show GST and QST separately. The GST/HST number sits in the header or footer. If a quote comes in without tax, add it before you compare it with the others.
06 No proof of insurance or WCB
What it looks like on paper
Nothing, usually. The quote says "fully insured" in the footer and that's the end of it. Or the contractor says "I'll send the certificate" and it never arrives. On Level Bids every member's insurance and WCB clearance is checked and dated before they can bid, because this is the flag homeowners skip most.
Why it happens
Liability insurance and workers' compensation coverage are real monthly costs. A contractor who's skipped them can quote lower than one who hasn't. The risk lands on you. If a worker is hurt on your property and the contractor has no coverage, the claim can come looking for the property owner. If the crew drops a beam through your neighbour's fence and there's no liability policy, you're the one being sued. WCB Nova Scotia's own guidance says a hiring party can become liable for an uncovered contractor's claims. Every province has a board and a clearance system; the name on the letter changes, the idea doesn't.
What to ask
"Before we sign, can you send your certificate of liability insurance and a current WCB clearance letter?" Both take the contractor five minutes if they exist.
What a fair version looks like
A certificate of insurance from the broker, naming the contractor's business, showing the policy dates and the liability limit ($2 million is common for residential work). A WCB clearance letter, which confirms the business is registered, up to date on payroll reporting, and owes nothing. In Nova Scotia the hiring party can check clearance directly with WCB. For electrical, plumbing and gas, ask for the trade licence too. A fair contractor is proud of this paperwork. A bad one changes the subject.
07 No start and completion dates
What it looks like on paper
"Start: spring." "Approximately 3 weeks." Or nothing at all. The quote describes the work and the price and never says when. The sample roof quote on our home page has this exact gap: $18,900, 50% deposit, and no date anywhere.
Why it happens
Contractors juggle jobs, weather and suppliers, and dates are the thing they get blamed for. So some leave them out. But an open-ended job is the one that stalls. Without a start date you can't tell when the deposit becomes overdue work. Without a completion date you can't tell when the balance is due, and you can't hold anyone to anything when the crew disappears to another site for three weeks in the middle of your kitchen.
What to ask
"What start date and completion date will be written into the contract, and what happens if either one slips for a reason that isn't weather or my change order?"
What a fair version looks like
A start window of a week or two, a completion date, and a sentence about delays: weather, supply problems, and changes you ask for extend the date; anything else is on the contractor. Big jobs carry a short milestone schedule tied to the payment schedule. The Ontario government lists a work schedule with start and completion dates as a required part of a renovation contract, and Quebec's building regulator says the same. The rest of the country should want it too.
08 "Permits not needed" for structural, electrical or plumbing work
What it looks like on paper
"Permits: N/A" or "by owner" on a quote that moves a wall, adds a bathroom, or rewires a panel. Or a verbal "you don't need one for that, it just slows things down." The quote is cheaper because the permit fee, the drawings and the inspection visits aren't in it.
Why it happens
Permits cost money, take time, and bring an inspector who might fail the work. Some contractors skip them to win the job on price. Some can't get them because they aren't licensed for the trade. Some tell the truth: plenty of work doesn't need a permit. In Halifax, for example, replacing shingles or siding with similar materials, swapping windows in the same opening, replacing fixtures and flooring, and installing insulation or a heat pump don't need a building permit. Moving walls, structural repairs, changing the plumbing system, adding a suite, or building a deck do.
What to ask
"Who is pulling the permit, and is the fee in the price? If you're telling me none is needed, can you point me to the municipality's page that says so?"
What a fair version looks like
A line that says "building permit: included, applied for by contractor" or "electrical permit: by licensed electrician, included." For work that doesn't need one, a fair quote says that plainly ("like-for-like re-roof, no permit required") rather than leaving it blank. Unpermitted structural, electrical or plumbing work bites twice: at resale, when the buyer's inspector or lawyer finds it, and at claim time, when your insurer asks whether the work was inspected. The permit is the cheapest insurance on the quote.
Two flags is the line
One flag on its own is often a sloppy quote from a decent contractor. Ask the question and see what comes back. Two or more, and the quote needs a proper look before you sign: compare it against the other bids, check the pricing for your area, and get the gaps closed in writing. That's what a review does. The printable checklist has all eight on one page.
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Sources
All checked October 31, 2026.
- Government of Ontario, Your rights when starting home renovations or repairs (recommends down payments of no more than 10%; 10-day cooling-off period on contracts of $50 or more signed in your home; contracts over $50 must be in writing; required contract contents). Page updated August 6, 2026.
- Régie du bâtiment du Québec, Signing a renovation contract (no deposit may be requested by an itinerant merchant within the 10-day cancellation period; recommended contract contents).
- Canada Revenue Agency, Charge and collect the GST/HST: which rate to charge (14% NS, 15% NB/NL/PE, 13% ON, 5% GST elsewhere).
- Canada Revenue Agency, When to register for and start charging the GST/HST ($30,000 small-supplier threshold).
- Canada Revenue Agency, Confirming a GST/HST account number (GST/HST Registry; number required on invoices of $100 or more).
- WCB Nova Scotia, Clearance letters (what a clearance letter confirms; hiring party's liability when a contractor is uncovered).
- Halifax Regional Municipality, Home improvement permits (which renovations need a building permit and which don't).
Deposit norms of 10 to 25% are trade practice, not law; see the deposits and holdbacks guide for the statutory holdback in each province. This guide is an experienced tradesperson's general guidance, not legal advice.