Why Three Bids Rarely Match
Bids differ for two legitimate reasons and one dishonest one. Legitimately, contractors estimate different scopes, use different subcontractors, and carry different overhead. Dishonestly, one bidder may leave items out to look cheap. Your job is to normalize the scope so you are comparing the same project three times.
Start by writing your own one-page scope sheet: what is demolished, what is kept, materials by name, who pulls permits, and the finish level. Hand the same sheet to every bidder.
Allowances: The Quiet Budget Trap
An allowance is aplaceholder budget for an item not yet chosen — "tile allowance: $1,500." If your chosen tile costs $4,000, you owe the difference. Low allowances make a bid look cheap while shifting cost to you later.
| Allowance | Too-low (risk) | Realistic placeholder |
|---|---|---|
| Cabinets | $8,000 | $15,000–$25,000 for a typical kitchen |
| Tile | $1,500 | $3,000–$6,000 |
| Plumbing fixtures | $600 | $1,200–$2,500 |
Ask each bidder to state the allowance and show the product it actually buys. If no product exists at that price, the allowance is fiction.
Read the Exclusions List
The exclusions list tells you what is NOT included: permits, debris removal, temporary housing, utility hookups, painting touch-ups, "owner-provided" items. One bidder may exclude $3,000 of work another includes. Build a small table of inclusions/exclusions per bidder and total the excluded items before comparing.
- Permits and fees
- Debris and dumpster rental
- Minor structural or drywall repairs found during demolition
- Final paint and touch-ups
Contract and Payment Terms
A clear contract protects both sides. Look for: a fixed or not-to-exceed price (vs. open time-and-materials for the whole job), a payment schedule tied to milestones (not calendar dates), a written change-order process, start and completion dates, and a warranty clause. A deposit of 10%–20% is normal; a contractor demanding half up front is a red flag.
Also request lien waivers at each payment so you are not left liable for the contractor’s unpaid subs.