If you have requested a construction or renovation estimate recently, the total may have been higher than you expected. We understand the sticker shock. Homeowners are paying more for nearly everything, and nobody wants to spend more than necessary.

At the same time, a legitimate contractor cannot price a project using only the cost of materials and the hourly wage paid to the person doing the work. A professional estimate has to cover the complete cost of delivering the job: planning, labour, payroll expenses, materials, equipment, transportation, protection of the property, cleanup, disposal, business overhead, warranty responsibility and a reasonable profit.

This article explains how we price work at MW Construction & Landscaping and why a quote that looks expensive at first can be the realistic cost of completing the job properly.

Construction Costs Are Still Rising in 2026

The sharpest price jumps of the early 2020s may be behind us, but construction costs have not returned to old levels. Statistics Canada reported that, in the first quarter of 2026, residential construction prices across 15 Canadian metropolitan areas—including Edmonton—were 2.8% higher than a year earlier. Non-residential costs were 3.6% higher.

The same report identified continued material-sourcing constraints, steel-related price pressure and skilled-labour shortages. Prairie builders specifically reported skilled-labour shortages as a major challenge. Not every individual product increases at the same time, but the overall cost of putting labour, materials and equipment together on a finished project continues to rise.

That matters because contractors buy more than lumber and drywall. A typical project can require fasteners, adhesives, membranes, blades, abrasives, caulking, primer, floor protection, safety supplies, fuel, delivery and disposal. Individually, some of these costs look small. Together, they materially affect the price of the job.

A $23-Per-Hour Employee Does Not Cost the Company $23 Per Hour

This is one of the biggest misunderstandings in contractor pricing.

In Alberta, construction employees are entitled to at least 6% vacation pay and general-holiday pay equal to 3.6% of wages. Employers must also pay their share of CPP and EI, as well as WCB premiums. WCB rates vary by industry classification and claims experience, but WCB Alberta's average employer rate for 2026 is $1.46 per $100 of assessable earnings.

Here is a simplified example for a full-time construction employee earning $23 per hour:

Employer costApproximate hourly amount
Base wage$23.00
Vacation pay at 6%$1.38
General-holiday pay at 3.6%$0.83
Employer CPP contribution$1.40
Employer EI premium$0.58
WCB at the 2026 Alberta average rate$0.37
Approximate direct payroll cost$27.56/hour

The exact amount changes with annual earnings, WCB classification and other circumstances, but the point is straightforward: before the employee picks up a tool, a $23 wage can already cost the employer roughly $27.50 per paid hour.

It still does not include:

  • Payroll processing and bookkeeping
  • Commercial liability insurance
  • Safety training, PPE and first-aid supplies
  • Tools, maintenance, repairs and replacement
  • Work vehicles, fuel and vehicle insurance
  • Supervision and quality control
  • Time spent loading, travelling, sourcing materials and unloading
  • Weather delays, scheduling gaps and other paid time that cannot always be billed

If only 36 hours of a 40-hour paid week can be recovered through customer work, that $27.56 direct payroll cost becomes approximately $30.62 for each recoverable hour—before adding tools, vehicles, insurance, administration or profit.

That is why a contractor's labour rate cannot be compared directly with an employee's wage. The difference is not automatically profit. Most of it pays the cost of legally employing and properly supporting that worker.

The Time on Site Is Not the Entire Job

Clients naturally see the hours when a crew is physically working at their property. The contractor is also responsible for work that happens before and after those hours, including:

  • Discussing the project and reviewing photos
  • Visiting the site, measuring and identifying risks
  • Building the scope and preparing the estimate
  • Confirming quantities and obtaining supplier or subcontractor pricing
  • Ordering, collecting, transporting and returning materials
  • Loading tools and preparing the work vehicle
  • Protecting floors, furniture and nearby finishes
  • Setting up and cleaning the work area each day
  • Hauling debris and paying disposal fees
  • Coordinating employees, trades, deliveries and inspections
  • Invoicing, bookkeeping and project records
  • Responding after completion if a legitimate warranty issue appears

A task that takes one day on the tools can require several additional hours of planning, purchasing, transportation and administration. Those hours are part of delivering the job, even though they are less visible.

Why Materials Usually Cost More Than the Shelf Price

Looking up one product online is useful, but it rarely represents the complete material cost of an installed project.

A responsible material allowance may include:

  • The measured quantity plus a reasonable waste or off-cut allowance
  • Fasteners, adhesives, sealants and other installation consumables
  • Delivery charges or paid time and fuel for pickup
  • Protection required to prevent damage to the home
  • Supplier price changes between the estimate and purchase date
  • Damaged, defective or unusable material
  • Returns, exchanges and restocking fees
  • The contractor's responsibility to correct a material-related problem

Contractors may apply a reasonable material markup or handling charge because purchasing is a service and a risk. The contractor verifies quantities, places the order, fronts or manages the purchase, transports the material, deals with shortages and defects, and remains responsible for delivering the finished result. That markup should be reasonable, but expecting materials to be supplied at bare retail cost ignores the work and liability involved.

Equipment, Disposal and Protection Are Real Project Costs

Many jobs require more than hand tools. Dump trailers, disposal bins, floor sanders, concrete equipment, lifts, compact loaders, scaffolding and specialty extraction systems all carry rental, transportation, fuel and wear costs.

Demolition also creates debris that must be loaded, transported and disposed of legally. Protecting the client's home takes time and material as well: floor covering, plastic containment, dust control and daily cleanup are not optional extras when the goal is professional work.

These items may not remain in the finished project, but they are necessary to complete it safely and leave the property in good condition.

Overhead Is What Keeps a Contractor Accountable

Every established contractor has costs that cannot be assigned to a single board, tile or hour of installation. These may include WCB coverage, insurance, accounting, estimating time, phones, software, advertising, vehicles, tool replacement, storage and unpaid warranty service.

Overhead is sometimes treated as if it were unnecessary markup. In reality, it is what allows a company to answer the phone, keep records, arrive with functioning equipment, employ people properly and still exist if the customer needs support after the final payment.

Cash work from someone with no coverage, no insurance, limited equipment and no intention of returning can be cheaper. It is not the same service and it does not carry the same protection.

Profit Is Not a Dirty Word

A contractor needs to earn a reasonable profit after all project costs and overhead are paid. Profit allows the company to replace failed equipment, survive slower periods, train workers, correct mistakes and continue honouring its commitments.

Without profit, a contractor may stay busy while falling behind financially. That eventually leads to rushed work, unpaid suppliers, abandoned projects or a business that is no longer around when a warranty call comes in.

The goal is not to charge the highest possible price. The goal is to charge enough to complete the agreed scope properly, stand behind the work and operate a stable business.

How MW Construction & Landscaping Prices a Job

Our estimates are built from the actual requirements of the project. Depending on the work, we consider:

  1. The written scope and expected finished result
  2. Crew size, skill level and realistic production time
  3. Preparation, protection, setup and cleanup
  4. Current supplier pricing, quantities, consumables and waste
  5. Equipment, delivery, transportation and disposal
  6. Subcontractors, permits or inspections when required
  7. Payroll burden, WCB and a fair share of company overhead
  8. Project risk, warranty responsibility and reasonable profit

GST, when applicable, is shown separately. It is collected and remitted as tax; it is not additional profit for the contractor.

We also define exclusions and use written change orders when a client requests work outside the agreed scope or when concealed conditions require a different solution. This protects both sides and keeps a project from turning into an argument about what was or was not included.

How to Compare Contractor Estimates Fairly

Getting more than one estimate is reasonable. Before choosing the lowest number, make sure every contractor is pricing the same result.

Ask whether each estimate includes:

  • The same scope, quantities and material grade
  • Preparation and protection of existing finishes
  • Delivery, equipment, cleanup and disposal
  • Required permits or inspections
  • WCB coverage and appropriate insurance
  • A clear payment schedule
  • Written exclusions and a change-order process
  • Workmanship warranty and post-project support

A much lower estimate may be legitimate, but it can also mean that less labour was allowed, preparation was reduced, cheaper materials were assumed or important items were excluded and will be added later. Comparing the scope is more useful than comparing only the total.

What We Will—and Will Not—Compromise On

MW Construction & Landscaping aims to offer fair, competitive pricing. We will not always be the cheapest contractor, and claiming otherwise would not be honest.

If a project is above a client's budget, we can often discuss different materials, finishes, phases or a reduced scope. What we will not do is reach an unrealistic number by removing necessary preparation, underpaying workers, ignoring safety, hiding likely costs or planning to rush the finished work.

Our price is meant to cover the real cost of doing what we agreed to do—and doing it to a standard we are prepared to put our name behind.

Planning a Project in Edmonton?

Send us the project details, measurements and photos through our estimate-request form. The more information we receive upfront, the more accurately we can assess the scope and explain where the cost comes from.

MW Construction & Landscaping
Edmonton, Alberta
Request an Estimate

Sources and Calculation Notes

Figures were verified July 18, 2026.

The $23-per-hour example assumes 2,080 paid hours per year, vacation and general-holiday pay added to wages, employer payroll contributions on applicable earnings and WCB calculated using the province-wide average rate. It is an educational example, not a payroll quote. Actual employer costs depend on the employee, hours, classification and company rate.