How to compare contractor bids that don't match

Reviewed by Matt Kovalik, licensed Minnesota journeyworker electrician. License AJ703617 (verify).

Why bids for the same job differ

Two bids for the same job rarely describe the same job. One includes tear-off, permits and disposal; another leaves them out. One names the exact equipment; another says it will use something comparable. Before you read a gap as markup, check whether the bids cover the same scope.

Before you compare totals, make sure each bid answers the same questions. The lists below are a good start.

Line the bids up

Put the bids side by side and list every item each one includes: equipment or materials by name, labor, permits, disposal, repairs, cleanup and warranty.
Mark anything one bid includes and another leaves out. Ask the contractors who left it out to price it or say in writing that it is not needed.
Check allowances. A bid with a small allowance for something you have not picked yet can end up higher than a bid with a realistic one.
Compare payment schedules and what has to be done before each payment is due.
Only then compare totals.

Check each total against what permits show

Once the bids describe the same job, enter each total in the calculator for that job. It shows where each one falls against permit values or survey data for your region, and it tells you which cities the numbers come from.

Questions to ask every contractor

These shared questions come from Matt's lists for each trade. Every calculator page has the full list for its job.

Heating and cooling

Can you list the exact equipment and all installation changes in the written bid?Model names leave out the labor and connection changes needed to put that equipment into service.
What does the labor warranty cover, and what maintenance or registration is required?Parts coverage may exclude troubleshooting and return visits, and missed maintenance or registration can affect your coverage.

Roofing and exterior

How will you protect the property and leave it clean at the end of each day?Flower beds, walkways, and household access deserve protection throughout demolition.
Who is accountable for crew supervision, required permits, and getting a leak repaired after the job?A leaking installation needs a named contact who can arrange a repair without sending you between companies.

Kitchen and bath

Will you put changes and their price and schedule impact in writing before proceeding?An extra agreed to in passing can turn into a bill you were not expecting.
Who is my daily contact, and what work has to be complete before each payment is due?Visible milestones make payments easier to assess, and a daily contact keeps decisions moving.