How to negotiate a contractor quote

A remodel quote moves when the work on the page changes, or when a placeholder gets a real number. It does not become a better price because you asked for a percent off and the contractor agreed in the kitchen. Start by making the bids describe the same job. Then ask for a revised price in writing.

Make the bids the same job first

California's Contractors State License Board says to compare bids on identical plans, specifications, and scope, and not to accept the lowest bid automatically. A bid substantially lower than the others may be a mistake, or it may leave out work the others included (CSLB). The Texas Attorney General says to question the materials and the work on a low-ball bid, because a very low bidder may not be planning every task you expect (Texas AG).

Read one estimate before you argue with the total. The line-by-line pass is in how to read a contractor estimate. The side-by-side pass is in how to compare contractor quotes. If the bids still describe different work, send your scope of work and ask each contractor to price that.

What you can actually ask them to change

• A missing line. Haul-away, permits, protection of the floors you are keeping, and the fixtures you are buying yourself should be a yes or a no, with a price. "We'll figure it out" is not a discount.
• A thin allowance. A low allowance makes the bid look cheaper until you pick the tile. Ask for the dollar amount, what it includes, and who pays the difference. See allowances.
• The materials. If you want a lower price, ask which specific material would change, and what the new price is. Do not trade an unnamed "builder grade" for a number you cannot check.
• The payment schedule. Moving a payment so it follows finished work is a contract term, not a favor. Do not trade a small discount for a larger deposit. California's cap, as one example, is in deposits and payment schedules.
• The change fee. The Texas AG says most contractors will not let you change your mind for free, and that a service charge for changing the work order should be in the contract. Ask for that sentence before you sign, not after the first revision.

Get the new price on paper

Ask for a revised bid, or a change order if you have already signed. CSLB says a change to the price or the scope must be a written change order, signed by you and the contractor before the change, and that the change order becomes part of the contract (CSLB, what is a contract). A text that says "we can do it for less" is not that paper. The pattern after you have signed is in change orders.

Do not invent a competing bid you do not have. Do not agree to a lower number that still has blank lines. The Texas AG says not to sign a contract with blanks in it, because the blanks get filled in later. And do not treat contractor financing as a discount. The AG says to shop the loan separately from the bids, and warns that some contractors have homeowners sign a credit contract and then sell the right to collect for less than the contract price. Financing is its own decision, in how to finance a home remodel.

RenoBinder keeps the scope and the bid you actually accept, including the lines that changed. One room is free.

This is general information, not legal advice. Rules vary by state; for a dispute, talk to a licensed attorney or your state contractor board.

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