How to read a basement quote: what should be in writing

Two quotes for the same basement can look very different. Before you compare totals, make sure you're comparing the same work. This checklist is based on the Government of Alberta's guidance on hiring a contractor.

What a written estimate should show

• A complete description of the work.
• The type and quality of the materials.
• Project start and completion dates.
• Itemized costs and the total price.
• Any guarantees the contractor makes.
• The required method of payment.

Alberta suggests getting written estimates from more than one business. If a line is vague, ask what it includes. Flooring, for example, could mean very different products.

What the contract should add

• Any work that will be subcontracted, such as plumbing and wiring.
• Who gets the permits and makes sure inspections happen at the right times.
• A statement that all work follows local codes.
• Who removes debris when construction is done.
• An itemized payment schedule, including any holdback under the Builders' Lien Act.
• All warranties: what's covered, for how long and what happens if there are problems.
• A certificate of insurance showing public liability and property damage coverage.
• The contractor's Workers' Compensation Board number.
• Cancellation rights, and how problems will be resolved.

Fill any blanks with NA, strike out anything you don't agree with, and have both parties initial the changes. A signed contract is legally binding, so consider having a lawyer review it. Any later changes should have your written approval and a signed statement showing the change in cost.

Permits are your responsibility too

Even when a contractor applies for them, Alberta notes that the homeowner is ultimately responsible for making sure the necessary permits are in place before work starts. See what your town requires in our basement permits guide.

Check the contractor

• Ask for the WCB number. WCB Alberta also has a clearance letter process that confirms coverage.
• Ask to see the insurance certificate.
• Check the qualifications of the tradespeople. A qualified tradesperson has a pocket certificate issued by the Government of Alberta.
• A contractor who takes money before the work is complete, and discusses or finalizes the contract away from their normal place of business, such as at your home, is a prepaid contractor and must be licensed by Service Alberta.

Warning signs

• Quoting a price without seeing the job.
• Demanding a large down payment to buy materials.
• Refusing to give you a written contract.
• Not committing to specific start and completion dates.
• Offering a discount for using your home to advertise their work.
• Giving only a post office box as an address, or an answering service as a phone number.