How to compare contractor estimates
Updated October 24, 2026
In short
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 cheapest number often leaves things out.
Make the scope the same
Send every contractor the same description, photos and measurements. If one estimate is much lower, look for what is missing rather than assuming it is a better deal.
What a good estimate shows
- Work broken into clear line items
- Allowances for items you haven't chosen yet, with amounts
- What is not included, in writing
- Who files and pays for permits and inspections
- Expected start date and duration
- Payment schedule tied to progress
Check the contractor
- NYC Home Improvement Contractor license from DCWP for home and apartment work, searchable online
- Master electrician or master plumber license for that 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 rules for home improvement contracts, including how a deposit must be protected. Ask how yours is handled. Any change during the job should be priced and signed before the extra work is done.
Questions
How many estimates should I get?
Two or three is usually enough if they are for the same scope.
Is a verbal quote enough?
No. Get the scope, price and payment terms in writing before work starts.
General information, not legal or engineering advice. Rules change and every building is different. Check with the Department of Buildings, your town or your building management.