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Fixed Price vs. Estimate: What Every Homeowner Should Know Before Hiring a Contractor

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Jason Mitchell

A fixed-price renovation contract locks in the total project cost before work begins. Unlike an estimate, the price does not change unless you request additional scope. The contractor absorbs cost overruns rather than billing them back to you. Wesgrove Homes has operated on fixed-price contracts only since 2017, serving homeowners in Delta, Ladner, Tsawwassen, Steveston, and Richmond, BC.

Why Most Renovation Quotes Are Not What They Seem

When a contractor gives you an estimate, they are giving you their best guess at the current cost. Not a commitment.

Estimates change. Material prices shift, subcontractors come in higher, and timelines slip. The mechanism that makes this possible is the change order: a written request to do additional work at additional cost. In an estimate-based contract, every unexpected cost becomes a potential change order.

Some contractors deliberately low-ball the initial quote to win the project. Costs get recovered through change orders once you are committed and mid-renovation. The project you thought would cost $80,000 comes in at $110,000, and you only find out when the invoices arrive.

What Does a Fixed-Price Contract Actually Mean?

Fixed-price contracting means the project price is agreed upon before work starts and does not change unless you request additional scope. The contractor absorbs cost overruns.

There is one exception worth naming. If you decide partway through that you want to upgrade the countertop material or add a feature that was not in the original scope, that is a genuine scope change. It gets handled transparently. What you will not see is a bill for costs that were always going to be part of the original project.

“Our experience with Wesgrove was the complete opposite of every story we heard.” — C.B., Google review

How Do You Spot the Difference When Comparing Renovation Quotes?

Not all renovation quotes are structured the same way. Here is what to look for.

Line-item detail. A fixed-price quote should specify materials, labour, and scope in enough detail that you know exactly what is included. Vague quotes leave room for disputes later.

Contract language. Look for “fixed price,” “lump sum,” or “stipulated price.” If the contract says “estimate” or “plus applicable costs,” the price can change.

Change order policy. Ask directly: under what circumstances would the price change? A genuine fixed-price contractor will answer this clearly and narrowly.

For homeowners in Delta and Ladner comparing multiple quotes, the lowest number is rarely the most informative number. Ask what kind of contract is attached to it.

Why Wesgrove Quotes Accurately Instead of Competitively

Wesgrove’s quotes are typically not the lowest you will receive in the Delta area. That is by design.

We do not lower a quote to win a project. Our price reflects the actual cost of doing the work properly: materials, trades, project management, and a realistic timeline. When you sign a contract with Wesgrove, the price on that contract is the price you pay.

“No surprise fixed price guarantee and projected definitive timelines. I was confident I was in very capable hands.” — D.P., Google review

Wesgrove has a 5.0-star rating across 60 Google reviews, serving homeowners in Delta, Ladner, Tsawwassen, Steveston, and Richmond, BC since 2017. If you are planning a renovation or home addition in the South Vancouver area, book a free consultation.


Jason Mitchell is the founder and president of Wesgrove Homes Inc., a licensed general contractor serving Delta, Ladner, and the South Vancouver area since 2017.


Frequently Asked Questions

What is the difference between a fixed price and an estimate in renovation?

A fixed price is a committed contract amount that does not change unless the client requests additional scope. An estimate is a projection that can change through change orders billed during the project. In a fixed-price contract, the contractor absorbs cost overruns.

Why are some renovation quotes much lower than others?

Low quotes are often estimates rather than fixed prices. Contractors sometimes offer lower initial numbers to win the project, then recover costs through change orders once work is underway. Before accepting the lowest quote, ask whether it is a fixed price or an estimate, and read the contract language carefully.

Does Wesgrove do cost-plus or time-and-materials contracts?

No. Wesgrove operates on fixed-price contracts only. Every project in Delta, Ladner, Tsawwassen, Steveston, and Richmond is quoted at a set price before signing.

What happens if unexpected issues come up during a renovation?

In a fixed-price contract, the contractor is responsible for managing cost surprises within the agreed scope. If we open a wall and find something that was always going to be part of the project, it is covered. The price only changes if you request additional scope beyond what was agreed.

How do I know if a contractor’s fixed price is actually fixed?

Read the contract. Look for “fixed price,” “lump sum,” or “stipulated sum” language. Ask the contractor to explain their change order policy. A genuine fixed-price contractor will be specific and narrow about what can cause a price change.A fixed-price renovation contract locks in the total project cost before work begins. Unlike an estimate, the price does not change unless you request additional scope. The contractor absorbs cost overruns rather than billing them back to you. Wesgrove Homes has operated on fixed-price contracts only since 2017, serving homeowners in Delta, Ladner, Tsawwassen, Steveston, and Richmond, BC.

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