Overpricing in Apartment Renovation Estimates: 7 Places Where a Contractor Hides an Extra $2,000

The contractor brings a 40-page estimate, and by the third page your eyes glaze over. Work amounts are duplicated, there's three times more material than needed, and the contract has neither deadlines nor liability. Sound familiar? Today we'll look at how to catch overpricing and avoid overpaying $1,000–$2,000 on a typical apartment.

Let's start with the main point: checking a contractor's estimate is not about reading numbers, but about comparing quantities and rates with reality. And the first thing you should do is not agree to a "package" offer, but break it down into understandable blocks.

Why it's easy to hide extra charges in a 40-page estimate

An estimate is not just a list of works. It's a document where the client and the contractor fix exactly what will be done and for how much. The more lines, the harder it is to spot the catch. A typical trick is "vague" wording: "other expenses," "unforeseen works," "installation of utilities" without specifics. Behind them may hide both real costs and simply a markup.

The second problem is overpricing in the estimate due to "double" accounting. For example, "tile removal" is listed separately and right there "preparation of the base for tiles." Essentially, it's the same operation but paid twice. Or material: "wall priming" in the works and "primer" in the materials — you pay for the same thing twice.

To avoid confusion, immediately ask for the estimate in a table format with columns: type of work, unit of measurement, quantity, price per unit, total. And обязательно — separately materials and separately works.

How to calculate quantities yourself and catch overpricing

Even if you're not a builder, you can recalculate basic quantities. Take the apartment plan and a tape measure. More on the topic: “Turnkey Apartment Renovation Estimate”.

Walls for plastering or skim coating. Wall area = room perimeter × ceiling height minus windows and doors. For example, a room 4×5 m, height 2.7 m. Perimeter = 18 m. Wall area = 18 × 2.7 = 48.6 m². Subtract a window (1.5×1.5=2.25 m²) and a door (0.9×2=1.8 m²). Total 44.55 m². If the estimate says 60 m² — ask why.

Floor screed. Floor area = length × width. For the same room, 20 m². If the contractor writes 25 m², they may be including slopes or simply overstating.

Electrical. Counted by points: sockets, switches, outlets for light fixtures. Ask for a diagram with points. If the estimate has 50 points but the diagram shows 30 — the price difference can be significant.

Materials with a reserve. A normal reserve for tile cutting is 10–15%, for laminate — 5–10%. If the estimate says 30% or more, clarify. Often the excess then "disappears" or is returned to the contractor.

Here's an example of how $1,500 is lost out of nowhere. A 60 m² apartment, standard renovation. In the estimate: removal of old plaster — 60 m² × $5.5 = $330. Then "applying plaster" — 60 m² × $8.8 = $530. And also "leveling walls for tiles" — 20 m² × $7.7 = $155. Total for walls $1,015. If removal and leveling weren't duplicated, it would be about $770. Plus materials: primer counted twice (in works and in material) — another $90 less. Total overpayment about $330 on walls alone. And across the whole apartment it easily adds up to $1,000–$2,000. More on the topic: “DIY Renovation or a Contractor”.

Which estimate lines to check first

Don't try to embrace the boundless. There are five areas where money is most often hidden. More on the topic: “How to Get Your Money Back for a Bad Renovation or Poor Service”.

1. Demolition. It's often put in a separate section and quantities are overstated. Compare with the actual condition of the apartment.
2. "Other expenses." If such a line exists, demand a breakdown. Usually it hides 5–10% of the estimate that goes nowhere.
3. Materials. Compare prices with market ones for at least three items (tiles, laminate, paint). A 30–50% markup is normal for a contractor, but not 200%.
4. Electrical and plumbing. Check the number of points and pipe footage. Extra meters are often included.
5. Works that aren't needed. For example, "waterproofing" in a dry room or "plastering" on walls that will be covered with drywall.

To simplify, you can use the AI twin on asibiont.com: it will break down the submitted estimate item by item, find duplicates and discrepancies with the contract, and calculate totals under different scenarios. But the decision on what to keep and what to remove is yours. More on the topic: “Unfair Contract Terms”.

Apartment renovation contract: what must be included

Even a perfect estimate won't save you if the contract is vague. An apartment renovation contract must contain: More on the topic: “Renovation Yourself or Hire a Contractor”.

• Exact start and completion dates, as well as intermediate stages (e.g., "electrical — within 30 days").
• Liability for missed deadlines: a penalty, e.g., 0.1% of the work cost for each day of delay.
• A fixed price or the procedure for changing it (only by additional agreement).
• The procedure for acceptance of stages and the entire work, with the client's right not to sign the act if defects are present.
• Warranty period for works and materials.

A common mistake is signing a contract where the price is "approximate" or "may be clarified." This is a loophole for cost increases during the process. Insist on a fixed amount or a clear formula for additional payments. More on the topic: “You Signed It, So You Agreed”.

Checklist of questions for the contractor before signing

Ask these questions and request written answers (in the estimate or a separate document).

• Why is the work volume in the estimate larger than the area on the plan? (e.g., walls 60 m² instead of 45 m²)
• What is included in "other expenses" and "unforeseen works"?
• How were materials calculated: with what reserve and who pays for excess?
• Are there duplicate works (demolition + preparation, primer in works and materials)?
• What are the deadlines for each stage and what happens if they're missed?
• Can I see intermediate acts and photo reports?

If the contractor avoids specifics — that's a reason to look for another one.

Template for an annex to the contract with fixed price and deadlines

The annex is an integral part of the contract. Here's its structure (you can use it as a basis). More on the topic: “How to Read a Rental Agreement So You Keep Your Deposit and Don't Pay”.

Annex No. 1 to Contract No. ___ dated ___

1. List of works and materials with quantities, unit rates, and total cost for each item (table).
2. Total fixed cost of works and materials: $_____, including VAT (if applicable).
3. Deadlines for stages:
4. Demolition: from ___ to ___.
5. Electrical and plumbing: from ___ to ___.
6. Plastering and screed: from ___ to ___.
7. Tiles and finishing works: from ___ to ___.
8. Liability for delay: penalty of 0.1% of the cost of uncompleted works for each day.
9. Procedure for price changes: only by written additional agreement of the parties.
10. Warranty on works: 24 months from the date of signing the acceptance act.

This template protects against most manipulations. The main thing is not to sign the contract until all numbers add up.

What to do if the contractor refuses to correct the estimate

Sometimes the contractor says: "This is a standard estimate, everything is correct." Insist on your position. You have the right to demand detail. If they won't engage — most likely they're counting on your inattention. In this case, it's better to refuse their services at the estimate stage than to lose money during the process.

Remember: proper checking of a contractor's estimate saves not only money but also nerves. And if you want to automate this process, the AI twin on asibiont.com can break down the estimate, compare prices with market ones, and remind you of stage deadlines. But the final decision and bargaining with the contractor are always yours. More on the topic: “How to Write a Renovation Acceptance Report, Prove Defects, and Not”.

Start by asking for the estimate in electronic form and the contract — and run them through the checklist above. If needed, bring in the AI twin to do the rough work: find duplicates, calculate totals, check deadlines. Then it's your turn to make decisions.