Contractor Phase|Step 15 of 49

Get 3-5 Detailed Bids

Getting multiple bids is not just about finding the lowest price. It is about understanding the true market cost of your project, discovering what different contractors include or exclude, and finding the professional who best understands your vision. Three bids is the minimum for meaningful comparison; five gives you a clearer picture of the competitive range.

Time Required

2-4 weeks

Cost

$0 (bids are free)

Difficulty

Moderate (coordination + analysis)

Requesting Itemized Bids

1

Prepare a detailed scope document

Before contacting any contractor, create a written scope of work that includes your floor plan, design drawings or inspiration images, material selections (or allowances), and a list of every task the project requires. Every contractor should bid on the same scope. Without this, you are comparing apples to oranges and the lowest bid probably just excluded the most work.

2

Require line-item breakdowns

Reject any bid that is a single lump-sum number. Require breakdowns by category: demolition, framing, electrical, plumbing, HVAC, drywall, flooring, trim, paint, fixtures, and cleanup. Line items let you see where costs differ and negotiate specific categories. If a contractor will not itemize, they may be hiding inflated pricing.

3

Specify material allowances clearly

If you have not finalized every material, include specific allowances in the bid request. For example: "flooring allowance of $8 per square foot installed" or "lighting fixture allowance of $3,000 total." This ensures bids are comparable even when exact products are not yet selected. Without set allowances, one contractor might bid with $5/sqft flooring and another with $15/sqft.

4

Ask for timeline and crew details

Each bid should include a proposed timeline with start and end dates, the number of crew members on site daily, which subcontractors they plan to use, and their current workload. A contractor with a six-month backlog will not start your project on time. Ask for realistic dates, not optimistic ones.

Comparing Bids Effectively

  • Create a comparison spreadsheet: List every line item down the left column and each contractor across the top. Fill in their prices. This instantly reveals which contractors are high or low on specific categories and where the biggest differences lie. The total price matters less than where the money goes.
  • Normalize for scope differences: If one bid includes permits and another does not, add the permit cost to the lower bid. If one includes a dumpster and another charges it as an extra, adjust accordingly. Your comparison should reflect truly equivalent scopes of work.
  • Look at the middle, not the extremes: If three bids come in at $48K, $52K, and $55K, and one comes in at $32K, that low bid almost certainly excludes significant work or uses inferior materials. The extremely low bid is not a bargain; it is a warning sign.
  • Factor in the intangibles: Communication quality, responsiveness during the bidding process, attention to detail in the proposal, and the contractor's enthusiasm for your project all matter. A contractor who is sloppy with their bid will likely be sloppy with your project.

Red Flags in Contractor Bids

  • Pressure to sign immediately: "This price is only good for 48 hours" or "I have another client interested in the same dates." Legitimate contractors give you time to compare bids and make an informed decision. High-pressure tactics usually indicate desperation for cash flow.
  • Vague or missing exclusions: Every bid should clearly state what is NOT included. If a bid does not list exclusions, assume nothing is excluded and ask specifically about permits, dumpsters, painting, cleanup, and fixture installation. Surprises come from what was never discussed.
  • Dramatically lower than all others: A bid that is 25%+ below the average of other bids is almost certainly missing scope, using inferior materials, or planning to hit you with change orders once work begins. Ask them to explain specifically why their price is lower.
  • Cash-only or no contract offered: Any contractor who prefers cash payment, avoids written contracts, or cannot provide proof of insurance is too risky to hire regardless of their price. These are fundamental business practices, not optional extras.

Pro Tips

  • Meet each contractor at your home: Phone and email bids miss critical details. Each contractor should visit your living room, take measurements, examine existing conditions, and discuss the project in person. On-site visits reveal problems and opportunities that photos cannot capture.
  • Ask about their change order process: During the bid meeting, ask how they handle changes and additions during construction. A clear, written change order process with pre-approval requirements protects both parties. Contractors who are vague about change orders will surprise you with costs later.
  • Do not automatically choose the lowest bid: The contractor you want is the one who understood your project best, communicated most clearly, and priced their work fairly. A $5,000 savings on a $50,000 project means nothing if the finished product is disappointing or the project drags on for months past deadline.