How to compare contractor quotes
The lowest number on the page isn't always the lowest price. Here is how to line up estimates so you're comparing the same job, with a checklist you can use.
You've got three estimates for the same job, and the prices are all over the place. That's normal. Contractors often price different versions of the job: one includes hauling away the old fixture, another assumes you'll buy the parts, a third quotes a better grade of material. The trick is to make the quotes comparable before you compare the totals.
This guide shows how to get estimates you can actually line up, what to look for in each one, and how to decide.
Get three written estimates
For any job beyond a small repair, aim for three written estimates. The FTC advises getting multiple estimates, and South Carolina's Department of Consumer Affairs recommends at least three bids in its contractor alert. Three gives you a sense of the normal range and makes an outlier easy to spot.
Always get them in writing. The FTC says a written estimate should include the work to be done, the materials, the completion date and the price. A number given verbally on the driveway isn't an estimate you can hold anyone to.
Before you collect estimates, make sure each contractor is properly licensed and insured. See how to check a contractor license.
Give everyone the same scope
Write one description of the job and give it to every contractor. Include:
- What's wrong or what you want done, room by room
- Measurements and photos
- Any materials, brands or models you've chosen
- What you expect to be included: removal of old materials, cleanup, permits
- Your timing, including any dates that don't work
When a contractor suggests something different, like a better product or extra work they think is needed, ask them to price it as a separate line. That way you can still compare the base job, and decide on the extras on their merits.
What to compare, line by line
Scope of work
Does each estimate describe the same job? Look for specific language, like "remove and dispose of existing water heater," not vague phrases like "replace as needed."
Materials
Brand, model, grade and quantity. A cheaper material can explain a lower price. If an estimate just says "materials," ask what exactly.
Timeline
Start date, how long the work will take and the completion date. Ask what happens if they run late.
Permits and inspections
Who pulls the permit and whether the fee is included. The contractor should handle permits; the FTC lists a contractor asking you to get them as a warning sign.
Warranty
How long the contractor guarantees their labor, and what the manufacturer's warranty covers on the materials. Get both in writing.
Payment terms
How much is due up front, when the other payments are due and what triggers them. Don't pay the full amount up front, and know that some states limit down payments. The Arizona Attorney General, for example, advises keeping a down payment to no more than one-third of the total.
Changes and surprises
How will they price extra work they find once the job starts, like rotted wood under a floor? Good estimates say how change orders are handled.
Follow-up questions for each contractor
Once you have the estimates in hand, a short call with each contractor fills in the gaps. Good questions:
- Is this a fixed price, or could the total change? What would make it change?
- Who will actually do the work: you, your crew or subcontractors?
- What's not included that I might assume is?
- How will you protect my floors, furniture and yard?
- If you find a problem once the work starts, how will you tell me and price it?
If insurance is paying
For storm or water damage covered by insurance, ask your adjuster for their repair estimate. California's Department of Insurance suggests using it as a benchmark when comparing contractor bids. Make sure each contractor is pricing the same repairs the adjuster approved, and ask them to list any extra work separately.
Side-by-side comparison checklist
Copy this table onto paper or into a spreadsheet and fill in one column per contractor.
| Item to check | Contractor A | Contractor B | Contractor C |
|---|---|---|---|
| License number checked and active | |||
| Liability and workers' comp insurance confirmed | |||
| Estimate is in writing | |||
| Scope matches my written description | |||
| Materials listed by brand, model and grade | |||
| Removal, haul-away and cleanup included | |||
| Permit and inspection included, and who pulls it | |||
| Start date and completion date | |||
| Labor warranty length | |||
| Materials warranty | |||
| Down payment and payment schedule | |||
| How change orders are priced | |||
| Fixed price or estimate that can change | |||
| References checked | |||
| Total price |
Choosing a contractor
Once the checklist is filled in, the decision usually gets clearer. A few guidelines:
- Don't automatically choose the lowest bid. That's straight from the FTC. If one price is far below the others, find out why. The Arizona Attorney General also warns to be wary of unusually low bids, which can mean something is missing from the scope.
- Ask about big differences. If prices differ widely, ask each contractor to explain. Their answers often tell you a lot about how carefully they looked at the job.
- Weigh communication. Did they return calls, show up on time for the estimate and answer questions clearly? That's a preview of the job.
- Trust your gut about pressure. Pressure for an immediate decision is on the FTC's list of scam warning signs, and the Arizona Attorney General flags "today only" deals too.
When you've chosen, get a written contract before work starts. Our guide to how to hire a contractor covers what it should include, and contractor red flags lists warning signs to watch for. Wondering whether you could do part of the job yourself? Try the DIY vs. pro calculator.
Want help finding contractors to quote? Send a free match request and we'll connect you with local pros.
Common questions
Why are my quotes so different?
Usually because the contractors are pricing different jobs: different materials, a different scope, or one includes permits and cleanup while another doesn't. Ask each contractor to explain their price, as the FTC recommends.
Should I just pick the cheapest quote?
No. The FTC advises against automatically choosing the lowest bidder. A very low bid can mean something is missing from the scope, cheaper materials or corners being cut.
Is it rude to share one contractor's quote with another?
You don't need to share prices, but it's fair to share the scope. Giving every contractor the same written description of the job is the best way to get quotes you can compare.
What is the difference between an estimate and a quote?
People use the words differently. What matters is whether the price is fixed or can change. Ask each contractor which it is and how changes will be priced, and get the answer in writing.