How to compare contractor quotes for a remodel (apples to apples)

You asked three contractors for a price and got back three documents that don't look alike. One is a single page with a total. One is twelve pages of line items. One sits in the middle and says "allowance" a lot. The totals are far apart, and none of them tells you which bid is actually the best deal.

The fix is simple, though a little tedious: put every bid on the same list of scope items, then price whatever each one leaves out. Contractors call this leveling the bids. Here's how to do it yourself.

Why remodel quotes are so far apart

A big spread usually doesn't mean someone is dishonest. It usually means the bids cover different work. Common reasons:

• Different scope. One bid includes demolition, disposal, and patching drywall, and another leaves those out.
• Allowances. One bid sets a $1,500 tile allowance and another sets $4,000. The lower bid isn't cheaper. It just assumes cheaper tile. (See allowances in a remodel contract.)
• Exclusions. Permits, electrical upgrades, and haul-away often show up as "by owner" or "not included."
• Assumptions about what's behind the walls. Some contractors price for likely surprises. Others leave them for change orders later.

The Federal Trade Commission's advice is to get several written estimates, not to pick the lowest bidder automatically, and to ask for an explanation when the estimates are far apart (FTC).

Step 1: Ask for bids in a format you can compare

Before the bids come in, send every contractor the same written scope. Include the room, what stays and what goes, the finishes you've chosen, and any fixtures you plan to buy yourself. California's contractor board recommends writing materials out specifically, down to brand and model. It's better to say "install oak kitchen cabinets, manufactured by Company XYZ, model 01381A," not just "install kitchen cabinets" (CSLB).

Per the FTC, a written estimate should at least describe the work, the materials, the completion date, and the price (FTC).

Step 2: Build one scope checklist

List every piece of work across all the bids, then mark each bid against each line: Included, Excluded, Allowance ($), or Unclear. A good starting list for a kitchen or bathroom:

Step 3: Price the gaps

Now turn the checklist into money.

1. Excluded items: for each one, write down what it will cost you to get it done some other way. Use a quote from another bid if you have one. If you don't know, mark it as an unpriced gap. Don't guess low.
2. Allowances: if a bid's allowance is lower than what your chosen finish costs, add the difference. Under standard AIA contract terms, when the real cost comes in above the allowance, the contract sum goes up by change order (AIA Contract Documents).
3. Unclear items: don't price these. Turn them into questions (Step 4).

Your comparable total for each bid is the bid price, plus the excluded items you priced, plus any allowance shortfall. That's the number to compare, not the number on the first page.

Step 4: Turn the "unclear" lines into questions

Send each contractor a short written list. Ask about the items they left vague, what is excluded, and how they handle surprises like rot or old wiring. Written answers are worth more than verbal ones. California's contractor board says that if you're promised something verbally, you should make sure it's also in writing (CSLB).

Step 5: Compare the terms, not just the totals

Two bids with the same total can still be very different deals. Check:

• Deposit and payment schedule. The FTC advises against paying the full amount up front and notes that some states cap the down payment (FTC). In California, the down payment can't be more than $1,000 or 10% of the contract amount, whichever is less (Cal. Bus. & Prof. Code § 7159.5). More in how much to pay a contractor up front.
• License and insurance. The FTC recommends considering only licensed, insured contractors, and checking the license with your state or county (FTC).
• Change-order process. How changes get priced and approved. See change orders.
• Timeline. A cheaper bid that finishes two months later can cost you in rent, takeout, or a second trip to the storage unit.

Red flags while you compare

The FTC lists these signs of a possible home improvement scam (FTC):

• Knocking on your door because they're "in the area"
• Claiming leftover materials from another job
• Pressuring you to decide immediately
• Asking for full payment up front, or accepting cash only
• Asking you to get the building permits
• Steering you to a lender they know

After you choose

The comparison is only useful if the bid you chose stays the bid you're paying. Write the agreed scope into the contract and keep your allowance numbers handy. Log every change as it happens.

General information, not legal or professional advice. Contract and payment rules vary by state. Check with your state's contractor licensing board or consumer protection office.

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