Budget PhaseStep 19 of 45

Get 3-4 Detailed Contractor Bids

Request, evaluate, and compare itemized contractor bids to find the best value for your whole home remodel. Learn why the lowest bid isn't always the best choice and how to make an informed selection.

Quick Summary

Timeline

2-4 weeks

For complete bidding process

Difficulty

Moderate to High

Requires careful analysis

Cost Impact

15-30% variance

Between highest and lowest

Why Getting Multiple Bids Matters

The bidding process is your opportunity to understand the true market cost of your project and find a contractor who offers the best combination of price, quality, and fit. A well-managed bidding process typically reveals a 15-30% spread between highest and lowest bids—representing tens or hundreds of thousands of dollars on a whole home remodel.

More importantly, the bid process reveals how contractors communicate, their attention to detail, and their understanding of your project. These insights are often more valuable than the price itself, as they predict how the construction phase will unfold.

  • Market validation: Multiple bids confirm your budget is realistic or reveal if adjustments are needed
  • Scope clarity: Comparing bids often highlights items you hadn't considered or specifications that need refinement
  • Negotiating leverage: Multiple bids provide fair benchmarks for contract negotiations
  • Risk reduction: Evaluating multiple contractors reduces the chance of hiring poorly qualified teams
  • Value optimization: Finding the right contractor—not just the cheapest—maximizes your return on investment
  • Timeline confirmation: Comparing schedules helps validate realistic project duration

Step-by-Step Bidding Process

1

Prepare Your Bid Package

A complete bid package ensures all contractors price the same scope, making comparison meaningful. Missing information leads to incomplete bids, assumptions that vary between contractors, and inevitable change orders.

Construction Documents

Include complete architectural plans, structural drawings, MEP (mechanical, electrical, plumbing) plans, and all engineering documents. Plans should be permit-ready with all details resolved.

Specifications

Provide a detailed spec book covering all materials, finishes, fixtures, and appliances with specific products or clear allowance amounts. Include cut sheets for selected items.

Bid Instructions

Create a cover letter specifying bid format requirements, submission deadline, required attachments (insurance certs, references), and how questions will be handled.

Project Timeline

Specify your desired start date, any hard deadlines (events, lease end dates), and expected project duration for contractors to confirm feasibility.

Contract Terms

Include your intended contract form (AIA, custom, or contractor's) so bidders understand the terms they'll be agreeing to.

Pro Tip: Create a bid form template requiring contractors to fill in specific line items. This makes comparison much easier than reviewing vastly different bid formats.

2

Pre-Qualify Potential Contractors

Sending bid packages to unqualified contractors wastes everyone's time. Pre-qualification ensures you're only comparing bids from contractors capable of successfully completing your project.

Licensing and Insurance

Verify active contractor license for your state, general liability insurance ($1-2M minimum), workers' compensation, and any required bonds. Request certificates naming you as additionally insured.

Project Experience

Look for contractors who have completed at least 3-5 projects similar in scope and budget to yours within the past 3 years. Whole home remodels require specific experience—don't accept bathroom remodel references.

Financial Stability

Request bank references, trade references, and evidence of credit lines. Contractors should be able to float 30-60 days of expenses without your payments. For large projects, consider requesting financial statements.

Capacity

Ensure the contractor has availability during your timeline and isn't overcommitted. Ask about current project load and dedicated project manager assignment.

Communication Style

Initial conversations reveal communication patterns. Look for responsiveness, clarity, and professionalism that matches your expectations.

Pre-Qualification Checklist

  • □ Valid contractor license (verify online)
  • □ General liability insurance ($1M+ coverage)
  • □ Workers' compensation insurance
  • □ 3+ similar completed projects
  • □ Available during your timeline
  • □ Responsive to initial contact
  • □ Positive initial impression
3

Distribute Bid Packages to 4-6 Contractors

Start with 4-6 pre-qualified contractors expecting 3-4 complete bids. Some contractors will decline after reviewing scope, fail to submit by deadline, or provide incomplete proposals. Having extra bidders ensures adequate comparison data.

Initial Distribution Meeting

Consider hosting a pre-bid meeting where all contractors can ask questions simultaneously. This ensures everyone receives the same information and creates healthy competition awareness.

Document Delivery

Provide digital copies (PDF) and physical plan sets if needed. Use cloud sharing (Dropbox, Google Drive) for easy access and tracking of who has downloaded documents.

Question Protocol

Establish how questions will be handled—typically submitted in writing with answers distributed to all bidders. Set a question deadline 1 week before bid due date.

Addenda Management

If questions reveal needed clarifications, issue formal addenda to all bidders documenting any changes or clarifications to the bid package.

Pro Tip: Request a confirmation email from each contractor acknowledging receipt of bid documents and intent to submit a bid. Follow up with anyone who doesn't confirm within 3 days.

4

Conduct Individual Site Walks

Each bidding contractor should visit the property to assess existing conditions, access challenges, and site-specific factors that affect pricing. Plans can't capture everything, and experienced contractors identify issues that may require budget adjustments.

Schedule Separately

Schedule individual site visits rather than group walks. This prevents contractors from influencing each other and allows you to observe each contractor's thoroughness and questions.

Allow Adequate Time

Budget 1-2 hours per site visit for a whole home remodel. Contractors need time to measure, photograph, assess existing systems, and identify potential challenges.

Provide Full Access

Ensure access to attics, crawl spaces, basements, and utility connections. Hidden conditions in these areas often drive significant cost variations between bids.

Share Known Issues

Disclose any known problems—foundation issues, past water damage, electrical concerns, or permit violations. Hiding issues leads to change orders and damaged relationships.

Evaluate the Contractor

Site walks are also interviews. Note if contractors ask thoughtful questions, notice important details, and communicate clearly about what they observe.

Site Walk Observation Checklist

  • □ Arrived on time and prepared
  • □ Brought plans and took detailed notes
  • □ Asked intelligent, relevant questions
  • □ Thoroughly examined existing conditions
  • □ Identified potential challenges proactively
  • □ Discussed timeline and logistics
  • □ Professional demeanor throughout
5

Receive and Organize Bids

Collect all bids by the stated deadline and organize them systematically for comparison. Late bids should generally not be accepted—contractors who can't meet a bid deadline may struggle with construction deadlines.

Enforce Deadlines

Set a firm bid deadline and stick to it. If you extend for one contractor, extend for all. Repeated extensions signal you're not serious and may result in less competitive pricing.

Verify Completeness

Review each bid immediately upon receipt to ensure all required components are included. Request missing items within 24 hours rather than waiting until comparison phase.

Create Master File

Organize all bid documents, correspondence, and notes in a dedicated folder for each contractor. Include site walk notes, reference feedback, and any clarifications received.

Initial Price Review

Note the total bid amount from each contractor before detailed analysis. A quick price range check helps identify any obvious outliers requiring immediate clarification.

6

Analyze and Compare Bid Components

Thorough bid analysis goes far beyond comparing bottom-line numbers. You need to understand what each contractor included, excluded, and assumed to make a fair comparison and avoid surprises.

Create Comparison Spreadsheet

Build a spreadsheet listing every major line item across all bids. Include categories like demolition, framing, plumbing, electrical, HVAC, insulation, drywall, paint, flooring, tile, cabinetry, countertops, appliances, fixtures, and finishes.

Normalize Allowances

Allowances vary significantly between bids. One contractor may include $15,000 for lighting while another includes $30,000. Adjust all bids to the same allowance amounts for fair comparison.

Review Exclusions

Carefully read what each bid excludes. Common exclusions include permits, design fees, landscaping repair, hazmat abatement, and utility upgrades. Add pricing for excluded items to normalize comparison.

Check Assumptions

Look for assumptions about existing conditions—foundation adequacy, electrical service capacity, plumbing condition. Different assumptions lead to different pricing.

Compare Payment Terms

Review payment schedules. Front-loaded payment terms (large upfront deposits) increase your risk. Best practice is payments tied to completion milestones with 10% retention until project completion.

Analyze Contingencies

Some contractors include contingency in their bids while others expect you to carry contingency separately. Understand how each bid handles unexpected conditions.

Bid Comparison Categories

• General conditions• Demolition• Foundation/structural• Framing• Roofing• Windows/doors• Plumbing• Electrical• HVAC• Insulation• Drywall• Paint• Flooring• Tile• Cabinetry• Countertops• Appliances• Fixtures• Hardware• Permits• Contingency

Pro Tip: Ask contractors about any line item that's significantly higher or lower than competitors. The answer often reveals important differences in scope, quality, or approach that aren't obvious from the bid document.

7

Check References for Top Candidates

After narrowing to 2-3 top bidders based on price and bid quality, thoroughly vet each through reference checks and project visits. A contractor's past performance is the best predictor of your project experience.

Call Multiple References

Contact at least 3 references per contractor, focusing on projects similar in scope to yours. Ask for references from both recent projects and projects from 2-3 years ago to check warranty follow-through.

Reference Questions to Ask

Beyond "would you hire them again," ask specific questions: Did the project finish on budget? How were change orders handled? How was communication? Were there any surprises? How did they handle problems? Did subcontractors show up consistently?

Visit Completed Projects

Ask to tour at least one completed project from each top contractor. Look at finish quality, attention to detail, and craftsmanship. If possible, visit a project in progress to see jobsite organization and safety practices.

Check Online Reviews

Review Google, Yelp, Houzz, and BBB profiles. Look for patterns in complaints rather than isolated incidents. Notice how the contractor responds to negative reviews—this reveals how they handle conflict.

Verify License and Insurance

Even if you checked during pre-qualification, verify current status of license and insurance before final selection. Request updated certificates with your name as additionally insured.

Key Reference Questions

  • 1. What was your original budget and final cost?
  • 2. How did they handle unexpected issues?
  • 3. Was communication consistent and clear?
  • 4. Did the project finish on schedule?
  • 5. How was the quality of their subcontractors?
  • 6. Were there any warranty issues after completion?
  • 7. Would you hire them again without hesitation?
  • 8. What could they have done better?
8

Negotiate and Make Final Selection

With complete analysis and reference checks done, you're ready to negotiate with your top choice and finalize selection. Focus negotiations on value, not just price—better terms, enhanced warranties, or schedule commitments may be more valuable than small price reductions.

Identify Your Top Choice

Rank your finalists based on overall value: price, experience, references, communication, and gut feeling. The contractor you'll work most comfortably with often delivers better results than the cheapest option.

Clarify Remaining Questions

Before negotiating, resolve any outstanding questions about scope, allowances, or approach. Ensure you're negotiating against a fully understood proposal with no hidden uncertainties.

Negotiate Thoughtfully

Don't engage in aggressive negotiation that damages the relationship before it starts. Reasonable asks include matching specific competitor pricing, improving payment terms, or adding warranty coverage.

Request Best and Final

If you have multiple strong candidates close in value, it's fair to request "best and final" offers, clearly stating this is the last round. Don't repeatedly request "one more revision."

Value Engineering

If bids exceed budget, work with your top contractor to identify cost savings without sacrificing quality. Experienced contractors often suggest substitutions or approach changes that reduce cost while maintaining design intent.

Make Your Decision

Once you've completed due diligence and negotiations, make a decision and move forward. Prolonged indecision frustrates contractors and may cause them to take other projects.

Pro Tip: Trust your instincts. If something feels off about a contractor despite a good bid, that feeling usually has merit. You'll work with this person daily for months—chemistry matters.

Understanding Why Bids Vary

Legitimate reasons for bid variation help explain price differences without indicating problems:

Overhead Differences

Contractors have different overhead structures. A company with a large showroom, extensive staff, and fleet of vehicles has higher overhead than a lean operation working from home. Both can deliver quality—you pay for different experiences.

Subcontractor Relationships

Contractors get different pricing from subcontractors based on volume relationships and payment terms. A contractor who provides steady work may get 10-15% better pricing than one who subcontracts occasionally.

Crew Experience

More experienced crews work faster and make fewer mistakes, reducing labor hours. A contractor with skilled, long-term employees may bid lower than one using less experienced or temporary labor.

Current Workload

Contractors with full pipelines may bid higher, while those needing work bid more aggressively. A contractor who really wants your project may sharpen pricing, while one who's busy may pad for the inconvenience.

Risk Assessment

Different contractors assess project risk differently. Unknown existing conditions, difficult access, or complex design may cause one contractor to add contingency while another feels confident handling uncertainties.

Scope Interpretation

Despite clear documents, contractors interpret requirements differently. One may include premium approaches while another assumes standard methods. Clarification resolves whether differences are scope or price.

Red Flags to Watch For

Significantly Low Bid (15%+ Below Others)

When one bid is dramatically lower, either they missed scope, made calculation errors, or plan to make up the difference with change orders. Always investigate before assuming you found a bargain.

Vague Line Items or Lump Sum Pricing

Bids that lump everything into a few large categories hide detail you need for comparison and change order evaluation. Professional contractors provide itemized breakdowns.

Large Upfront Deposit Requests

Deposits exceeding 10% (or more than first month's expected costs) indicate cash flow problems. Healthy contractors can start work without front-loading payments.

Unrealistic Timeline

If one contractor promises completion significantly faster than others, they're either planning excessive overtime (expensive) or underestimating the work. Unrealistic schedules usually slip.

Extensive Exclusions List

A bid that excludes many standard items may appear low but result in expensive additions. Watch for exclusions of permits, cleanup, protection, or items obviously required by plans.

Pressure to Decide Quickly

Bids with short expiration dates or high-pressure tactics suggest the contractor doesn't want you to thoroughly evaluate. Professional contractors give reasonable time for decision-making.

Won't Provide References

Any reluctance to provide references or arrange project visits is a major warning sign. Quality contractors are proud to show their work and have satisfied clients willing to speak.

Common Mistakes to Avoid

Choosing the lowest bid without investigation

Consequence: Low bids often result in change orders, corners cut, or contractor failure mid-project

Prevention: Investigate why any bid is 15%+ below others—ask what's excluded or where they're more efficient

Comparing apples to oranges

Consequence: Bids with different scopes, allowances, or exclusions can't be fairly compared

Prevention: Create a comparison spreadsheet normalizing all bids to the same scope before evaluating

Not providing complete documents

Consequence: Incomplete information leads to inaccurate bids and inevitable change orders

Prevention: Ensure all plans, specifications, and selections are finalized before requesting bids

Rushing the bidding process

Consequence: Contractors pad bids to cover uncertainty when they can't properly review documents

Prevention: Allow 2-3 weeks for bidding and be available to answer questions throughout

Skipping reference checks

Consequence: You may hire a contractor with poor track record despite a great bid

Prevention: Always check at least 3 references and visit a recent completed project before selecting

Ignoring communication style during bidding

Consequence: Poor communicators during bidding will be worse during construction

Prevention: Evaluate responsiveness, clarity, and professionalism throughout the bid process as a preview

Bid Comparison Template

Use this framework to systematically compare bids:

CategoryContractor AContractor BContractor C
Base Bid$___$___$___
+ Missing Scope Items$___$___$___
± Allowance Adjustments$___$___$___
Normalized Total$___$___$___
Timeline (months)_________
Reference Score (1-10)_________
Communication Score (1-10)_________
Overall Gut Feeling (1-10)_________

Frequently Asked Questions

How many contractor bids should I get for a whole home remodel?

Get 3-4 detailed bids from qualified contractors. Fewer than three doesn't give you enough comparison data, while more than four becomes difficult to manage and may signal to contractors that you're not serious. Quality of bids matters more than quantity—better to have three thorough bids than five rushed estimates.

Should I always choose the lowest bid?

No, the lowest bid isn't always the best choice. Significantly low bids may indicate the contractor missed scope items, plans to cut corners, or is desperate for work. The best value often comes from the mid-range bid from a well-qualified contractor. Focus on comparing what's included, contractor reputation, and overall value rather than just price.

What should be included in a contractor bid?

A complete bid should include itemized costs by trade and room, labor and material breakdowns, allowances with specific dollar amounts, a detailed scope of work, exclusions clearly listed, payment schedule with milestones, project timeline, warranty information, and assumptions made during bidding.

How long should I give contractors to prepare bids?

Give contractors 2-3 weeks to prepare detailed bids for a whole home remodel. This allows time for site visits, subcontractor pricing, material quotes, and thorough review of plans. Rushed bids often contain errors or inflated contingencies.

Is it okay to share bids between contractors?

It's generally considered unethical to share specific bid amounts between contractors. However, you can tell contractors where their bid stands (high, low, competitive) and give them one opportunity to revise. Bid shopping damages trust and may result in contractors padding future bids.

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