How to evaluate contractor bids
Mark Allan Contracting
February 5, 2025 · 1 min read
Anyone can compare the bottom line of three bids. The people who do not get burned compare everything above the bottom line first, because that is where the real differences hide.
What to actually compare
- Exclusions — the fastest way to understand a bid is to read what it leaves out. A low number with a long exclusions list is not a low number.
- Allowances — round-number allowances are placeholders. Count how many there are; each is a line that has not really been priced.
- Scope coverage — are all three bidding the same job? A missing scope item is the most common reason a total looks low.
- Schedule — a number that hits your date and a number that does not are not comparable, no matter how close the dollars are.
- Self-performed vs. managed — who actually does the work affects both the price and the accountability when something goes wrong.
The question behind all of it
The bid is a proxy for a relationship you are about to be in for months. The number matters, but so does whether the contractor scoped the job honestly, answered your questions clearly, and gave you a document you can actually hold them to. A clean bid from someone who communicates well is worth more than a low one from someone who does not.
When we bid, we spell out scope and exclusions so you can compare us fairly against anyone. Call us and we will walk you through ours.