Why Remodel Estimates Can Differ by $150,000 for the Same Plans

How can multiple contractors look at the exact same set of plans and arrive at numbers that are dramatically different?

When the drawings are identical, it feels logical that the pricing should be too. So when one proposal lands significantly lower than the others, it creates confusion — and often temptation. It can feel like either someone is overpriced, or someone else has found a smarter way to build the same project.

What homeowners are really trying to understand is this: what is actually different behind those numbers?

The honest answer is that plans are a design document — not a complete financial blueprint.

Even highly detailed architectural drawings leave room for interpretation. That interpretation shows up in allowances, scope assumptions, supervision levels, sequencing strategies, and how risk is handled.

Allowances are one of the biggest drivers of price gaps. These are placeholder budgets for selections that haven’t been finalized — finishes, plumbing fixtures, appliances, lighting, cabinetry, hardware. One contractor may carry allowances that reflect the level of quality typically installed in a home like yours. Another may use lean placeholders to keep the total estimate more attractive. Both bids technically include the same categories, but they are built on very different expectations. If the allowances don’t match your actual selections, the difference will surface later.

Scope gaps create another layer of separation. If something is not clearly detailed in the plans, it becomes an assumption. Temporary protection, permit coordination, engineering revisions, structural corrections discovered during demolition, site logistics, detailed finish carpentry — these items may be thoughtfully included in one estimate and minimally addressed in another. A lower price often reflects less inclusion rather than greater efficiency.

Supervision also plays a meaningful role. Is there a dedicated project manager overseeing scheduling, coordination, and quality control? Is there consistent on-site leadership? Or is the project managed remotely with trades largely coordinating themselves? Strong supervision reduces mistakes, protects schedule, and keeps communication clear — but it does add cost. Thin supervision may look efficient in an estimate and feel very different during construction.

Sequencing assumptions matter as well. Some contractors plan realistic timelines around material lead times and trade availability. Others assume tighter schedules or ideal conditions. The strategy behind how a project is sequenced affects labor costs, efficiency, and risk exposure.

Finally, there is the approach to risk. Remodeling existing homes involves unknowns. Some contractors build contingency into their pricing, acknowledging that opening walls can reveal surprises. Others price tightly and rely on change orders if unforeseen conditions arise. The project may cost the same in the end — but the financial experience can feel very different depending on how that risk was structured from the start.

When you layer all of these factors together, a six-figure spread between estimates becomes much easier to understand.

What this means for your project is that the lowest estimate does not automatically translate to the lowest overall cost. It may mean allowances are understated. It may mean portions of the scope are excluded. It may mean supervision is limited. It may mean that risk has simply been postponed.

Two proposals based on the same drawings can represent entirely different construction experiences — different levels of oversight, transparency, and protection.

The total number only tells part of the story. The structure behind that number tells the rest.

The most productive way to plan for this is to slow the comparison down. Review allowances and consider whether they reflect your taste and expectations. Ask what is excluded, not just what is included. Understand how supervision is structured and how trades will be coordinated. Have a clear conversation about how unforeseen conditions will be addressed and documented.

When you compare depth instead of just price, the differences begin to make sense — and your decision becomes far more informed.

If you want help reviewing your project before starting, we’re happy to talk.