How to Write a Contractor Quote in Canada (GST/HST Included)

A contractor's quote is both a sales document and, once accepted, potentially a binding agreement. Writing it well protects your margins, sets clear expectations, and makes you look like the professional you are. Here is how to write a contractor quote in Canada, including the GST/HST treatment.

What every contractor quote must include

Start with the basics: your business name, address, phone number, and business number. Then the customer's name and the job address (which is not always the same as their mailing address). Date the quote and give it a unique number so you can track it.

Describe the scope of work in plain language. 'Renovate bathroom' is not a scope; 'remove existing fixtures, install new tub, tile surround, vanity, and toilet supplied by customer' is. The more specific you are now, the fewer arguments you have later.

Line items: the anatomy of a good quote

Break the job into line items grouped by trade or phase: demolition, plumbing, electrical, tiling, painting. Each line gets a description, quantity where it makes sense, and a price. This structure helps the customer understand what they are paying for and helps you track costs against the quote as the job progresses.

Include allowances where selections are not final. If the customer has not picked tile yet, quote a tile allowance per square foot and state clearly what happens if they choose something pricier. Allowances are where most quote disputes start, so spell them out.

Exclusions: the section most contractors skip

Explicitly list what is not included: permits (or who pulls them), painting, cleanup beyond broom-clean, disposal fees, work on areas not mentioned. Every exclusion you write down is a misunderstanding you prevent. Customers rarely complain about a clear exclusion; they complain about surprises.

GST/HST on contractor quotes: the Canadian rules

In Canada, GST/HST generally applies to most contracting services. The rate depends on the province where the work is performed: 5% GST in Alberta, BC, Manitoba, Saskatchewan, and the territories; 13% HST in Ontario; 15% HST in the Atlantic provinces; and GST plus QST in Quebec. Show the tax as a separate line on the quote, with the subtotal, the tax amount, and the total clearly broken out. (General information only; tax rules change, so check current CRA guidance or speak to an accountant.)

If your business is small enough to be under the small supplier threshold, your treatment may differ; confirm your registration status before quoting. And if you work across provincial borders, apply the tax rules of the province where the service is performed.

Terms and conditions that protect you

Every quote should state its expiry date (30 days is standard; material prices move). Include your payment schedule: deposit amount, progress payments tied to milestones, and final payment terms. State your warranty on workmanship. Describe your change-order process: any work beyond the quoted scope requires a written change order with a price before it proceeds. That single clause prevents the most common source of lost profit in contracting.

Deposit and payment schedules

A typical residential structure is a deposit on acceptance (often 10 to 30 percent, within any provincial limits), progress payments as phases complete, and a holdback or final payment on substantial completion. Some provinces regulate deposits and holdbacks for construction, so verify the rules where you work. Never start work without the deposit in hand.

Presenting the quote professionally

How the quote looks matters as much as what it says. Use a clean, branded template. Deliver it as a PDF, not a photo of a handwritten page. Walk the customer through it in person or by phone rather than just emailing it into the void; the conversation is where you win the job and catch misunderstandings early.

Digital acceptance, where the customer signs or clicks to approve, creates a clear record of exactly which version they accepted. That record is worth its weight in gold if a dispute ever arises.

Common quoting mistakes

Quoting from memory instead of current material prices. Forgetting to include disposal, permits, or travel time. Copying a competitor's price without knowing your own costs. Leaving the timeline vague. And the biggest one: doing extra work without a written change order, then trying to bill for it after. Every one of these is preventable with a disciplined quoting process.

Software helps here: a good quoting tool enforces your template, calculates tax correctly, and tracks versions automatically. See our guide to quoting software for Canadian contractors for the options, or ask about a tailored quoting system through our custom web applications service.

Frequently asked questions

How long should a quote be valid?

Thirty days is the common standard in Canadian contracting. Material prices fluctuate, so a shorter window (14 days) is reasonable in volatile markets. Always print the expiry date on the quote.

Do I charge GST/HST on the deposit?

Tax is generally accounted for when it becomes due under the GST/HST rules, which depends on when you invoice and receive payment. The specifics depend on your situation, so confirm with your accountant rather than guessing.

What is the difference between a quote and an estimate?

A quote is typically a fixed price you commit to; an estimate is an approximation of expected cost. In Canada, a written quote accepted by the customer can be binding, while an estimate carries less commitment. Label your document correctly.

Should I itemize everything or give one lump sum?

Itemize major components so the customer sees the value, but you do not need to expose your internal cost breakdown. Group related work into clear line items with descriptions.

Write every quote like it will be read in a dispute, because one day one might be. Get a free quote for a quoting system that makes professional, tax-correct quotes the default instead of the exception.