Two contractor bids can look similar—and still be very different. It is tempting to put the proposals next to each other, look at the total price, and choose the lowest one. But the lowest number does not necessarily represent the same work.
One contractor may include demolition and cleanup while another excludes them. One may include permits. Another may leave them to you. Materials, allowances, payment schedules, warranties, and even the exact scope of the job can differ from bid to bid.
1. Compare the scope of work
Start by making sure every contractor is bidding on the same job. Look line by line at what each contractor says will be done. If one bid contains work that another does not mention, do not assume it is included. A missing item deserves a question.
2. Look carefully at exclusions
Exclusions can turn an inexpensive-looking bid into a much more expensive project. Watch for demolition, disposal, permits, preparation work, delivery, cleanup, repairs, finishing work, or other items that may be excluded from one proposal but included in another.
3. Compare allowances
An allowance is not the same as a fixed price. Two contractors may both include an allowance for flooring, fixtures, cabinets, or other materials—but at very different dollar amounts. A low allowance can make a bid look cheaper today and create additional cost later.
4. Compare payment terms
Do not compare only how much the project costs. Compare when the money is due. Look at the deposit, progress payments, milestones, and final-payment requirements. Two bids with the same total price can create very different financial commitments.
5. Compare schedules and timing
Check the estimated start date, completion time, and assumptions that affect the schedule. Ask what happens if materials are delayed or the scope changes.
6. Compare qualifications and warranties
Price is only one part of the decision. Consider what each contractor says about experience, licensing or insurance where applicable, references, warranties, and responsibility for correcting problems.
7. Put the differences side by side
Instead of reading one proposal, putting it away, and then reading another, organize the important terms in the same categories so you can see the differences at once. You may discover that the least expensive bid is not actually offering the same project. For a practical way to organize these differences, see Compare Contractor Bids with a Spreadsheet.
Five practical questions to ask before you sign
- What exactly is included—and excluded—from this price?
- Are the allowances realistic for the materials I actually want?
- When are payments due, and what work must be completed before each payment?
- What happens if the scope changes or unexpected work is discovered?
- What warranty is included, and who is responsible if something goes wrong after completion?
Make the differences easier to see
CompareMetric helps organize competing contractor or vendor bids side by side so you can compare more than the bottom-line price.
See CompareMetric