Money is the part of renovating that makes people most nervous, and for good reason. Open-ended pricing, vague estimates and payment demands that do not line up with progress have given the industry a reputation it does not always deserve. At Zenith we work on a fixed price in writing with staged payments tied to project milestones. Here is what that actually means, and what to ask any contractor about how they price and get paid.
Estimate, quote and fixed price
These words get used loosely, so it helps to define them:
- An estimate is a rough idea of cost. It can and often does change.
- A quote is usually firmer, but may still contain open items or wording that lets the number move.
- A fixed price is a written commitment to complete a defined scope for a defined amount. If the scope does not change, the price does not change.
The key word is defined. A fixed price is only as good as the scope written behind it.
What a fixed price includes
A proper fixed price should spell out:
- The work being done, room by room or area by area
- What is being removed and what stays
- The materials, fixtures and finishes, either selected or covered by an allowance
- Who handles permits and inspections
- Cleanup, disposal and site protection
- What is not included, so there are no assumptions on either side
- How hidden conditions (things found behind walls or under floors) are handled
If a price is one line on a page, it is not really fixed. It is just short.
Why scope and selections make it possible
We can only commit to a fixed number when we know exactly what we are building. That is why the design consultation and planning stage matter so much. We measure, take photos, ask about your goals, budget comfort and timing, and work through options with you. You can read more about that in what happens at a design consultation.
The more decisions you make before the contract is signed, the more solid the price is. Tile, fixtures, cabinets, counters and flooring chosen up front mean the number reflects what you are actually getting.
Allowances vs selections
Sometimes it is not practical to pick every item before work starts. That is where allowances come in.
- A selection is a specific product: this tile, this faucet, this vanity. The price is built around it.
- An allowance is a placeholder amount for something you have not chosen yet, such as "light fixtures" or "backsplash tile".
Allowances are useful, but they are also where budgets drift. If you choose something that costs more than the allowance, the difference is added; if you choose something that costs less, it should come off. Ask any contractor how their allowances work and whether the amounts are realistic for the level of finish you want. Our preference is to turn as many allowances into real selections as possible before starting.
Change orders, always in writing
Renovations change. You might decide halfway through that you want a niche in the shower, or we might open a wall and find something that has to be dealt with. Either way, the change should be handled with a written change order that describes:
- What is changing
- How it affects the price
- How it affects the schedule
- Your approval before the work goes ahead
Written change orders protect both sides. Nobody gets a surprise on the final invoice, and nobody has to remember a conversation from three weeks ago. Through our client portal you can see project updates as they happen.
Why payments follow milestones
Staged payments mean you pay as the work progresses, tied to clear points in the project, rather than paying most of the price up front or on arbitrary dates. Typical milestones might be things like contract signing, completion of rough-in, completion of drywall, cabinet or tile installation, and final completion. The exact stages depend on the project, and your contract spells out the schedule.
Tying payments to milestones keeps everyone aligned. You can see what has been done before a payment is due, and the contractor has the cash flow to keep materials and trades moving. It also gives you a natural checkpoint to walk through the work.
What to ask any contractor about payment
Whether or not you hire us, these are fair questions to ask:
- Is the price fixed, and what would cause it to change?
- What is included, and what is specifically excluded?
- Are there allowances? What are they, and are they realistic?
- How are hidden conditions handled and priced?
- What is the payment schedule, and what milestone triggers each payment?
- How are change orders documented and approved?
- Is there a lifetime workmanship guarantee on workmanship, and what does it cover?
- Is everything above in the written contract?
Be cautious of anyone asking for a large cash deposit before there is a written contract, or a payment schedule that runs well ahead of the work. We go into more of this in how to choose a renovation contractor.
Our approach
At Zenith you get a fixed price in writing, a lifetime workmanship guarantee, and staged payments tied to milestones in the contract. On larger projects that means a deposit of 20 to 30% at signing, depending on the size of the project, then staged payments as work is completed. Small service calls are paid in full on the day. You can read the details on our guarantees page and see how a project unfolds on our process page.
Get a fixed price for your project
The first step is a $250 in-home design consultation, credited toward your project if you go ahead. Book one here, or call Edmonton at (587) 812-4500 or Prince George at (250) 999-4500. We will look at the space, talk through options, and give you a fixed price in writing.
