Keep in mind the premium can change depending on: actual replacement vs cash valueliability protection levelvandalism clause or notmedical expenses levelprotection of rent income or notwater backup or notrebuild code update or notdemolition removal or nottype of house (1 story vs 2-story), type of construction (e.g living space above garage) and materials (brick, stone vs. wood siding), or roofmultiline discountshistory with the provider, claims history and CLUE report/scorecredit score (maybe)property historydesired coverageetc.

I would add that I have used a reputable HML lender that does front some of the construction costs but of course, not all, 3 draws of 1/3 the construction costs were provided, the first draw within the first week of the loan(the subsequent draws required third-party inspection of course) and the draws specifically state they are for material, not any labor, so a first time HML investor needs to be prepared with additional liquid cash assets as you may have to float some of the construction contracts as you mentioned being that most contractors want up to half of the contract cost up front.

His bid was not broken down very well with materials.

Of course i always like the cheaper material. 

We are redoing our kitchen, and lets say the cost is 60K+ 12K profit/Overhead (20%), includes cabinets, countertops, etc.Why do contractors calculate profit based on total cost including materials.

The liability exposure is materially higher and it's not the trade or business we're in. 

For example if the house has two unpermitted basement bedrooms people are not going to pay for those rooms the same as two standard ground level bedrooms but they may retain some value to a typical buyer as finished space.  

Opportunity Zones retain their designation for 10 years.

I put in my 2week notice January 2018 without another job lined up “all I knew was I needed to pass this test, Because I really wanted this since 2008.I studied so hard and spent so much money in the beginning on materials it was unbelievable, all I needed to do is get focused.

The sponsor should have some collateral material they can share with you to answer some of those questions.