Compare contractor bids without missing the fine print

Compare contractor bids only after every contractor prices the same written scope, then review allowances, exclusions, schedule, payment terms, changes, warranty, license, and insurance.

Bid worksheet showing that a $21,000 markup on $121,000 in revenue produces a 17.4 percent margin.

Use the formula

Comparable bid: Quoted total + Missing required scope + Allowance normalization

Worked example

Three fictional bathroom-remodel bids show why the lowest first-line total is not necessarily the clearest complete offer.

Line	Result	Meaning
Bid A	$28,400	Permit fees and warranty are not stated
Bid B	$31,100	Permit included and two-year labor warranty
Bid C	$29,650	Owner pays permit and tile allowance is not stated

Repeatable method

Issue one written scope.
Normalize allowances and exclusions.
Verify identity, license, and insurance where required.
Put relied-on answers into the final written agreement.

Questions and answers

Is the lowest bid best?: Not automatically. First make the scope, allowances, exclusions, and terms comparable.
What does not stated mean?: It is a question that needs a written answer, not a zero-cost line.

Sources

Federal Trade Commission: How to avoid a home improvement scamWritten estimates, contract details, and complaint records.
California Contractors State License Board: Finding the right contractorComparable scope, written bids, and license checks.

General consumer information, not legal advice. Verify state and local requirements.