Designing Kitchens and Bathrooms - Tub/shower tile question

I have recently gotten two separate quotes from some contractors to put new tile around my tub. The quotes are quite different and am looking for some input on which approach you all think is best.

Currently the wall around the tub is plaster with a wooden chair rail. The first contractor is recommending a complete demolition of the wall and replacing it with a ½ inch Hardibacker Cement board. He would then put a Red Guard sealer coated over Hardibacker prior and then place the tiles. This would take approximately 5 days and cost about $1800. The second contractor is proposing to leave the plaster wall and simply tile on top of the existing wall after removing the chair rail. This would take about 2 days and cost only $350, not including any supplies (tile, etc.)

Do you all have any input?

Thanks,
Todd

Todd, welcome to the forums!! Definitely door number 1. The second one won't be doing the job properly, as plaster isn't an approved tile backer, and will fail should water get to it, and it will. I know it sounds like alot, but taking the walls down to the skeleton will give the best finished job.

Larry

What Larry said.:Plus One: