How to Compare Contractor Bids Fairly

Two very different-looking bids can represent the same actual project — here's how to tell.

Request the same format from every bidder

Ask each contractor to break down their bid using the same trade categories, so you can place the numbers side by side meaningfully.

Watch for scope differences, not just price differences

A lower bid might be excluding something a higher bid includes (like permit fees or a specific finish level) — always confirm scope matches before comparing price.

Ask about what's NOT included

Understanding what's explicitly excluded from a bid is just as important as what's included, since exclusions often become costly change orders later.

A significantly lower bid deserves scrutiny, not automatic acceptance

An unusually low bid compared to others may signal corners being cut, inexperience with the project type, or a bid that will grow substantially through change orders.

Get everything in writing before work begins

Verbal agreements about scope or pricing are much harder to enforce than a detailed written contract — insist on documentation before any work starts.