How to Compare Contractor Bids

A lower total can hide excluded or undefined work. Compare the same scope, assumptions, quality, schedule and risk allocation before choosing; use the bid comparison worksheet to record what is included, excluded or not stated.

After the common comparison, use the optional branches for state license checks, seismic bids or coastal bids. This page does not recommend or rank companies.

Bid comparison worksheet

Select and copy the table into your project record, or use your browser’s Print command. Keep the hypothetical example separate from actual bids. “Not stated” is unresolved; do not enter zero or assume inclusion. Ask for a written clarification before comparing totals.

Confirm that bidders priced the same documents

Record the drawing set, specification issue date, addenda, site-visit information, and written clarifications used by each bidder. A lower number may reflect an earlier document set or a missing clarification rather than a lower cost for the same work.

If proposals were prepared from a narrative scope, issue one consolidated scope and ask bidders to identify deviations. Verbal conversations should be written into the comparison record.

Normalize the scope

Create rows for demolition, temporary protection, structure, enclosure, interiors, mechanical, electrical, plumbing, permits, testing, cleanup, closeout, and other project-specific divisions.

For commercial work, use the renovation planning guide to establish operational and lease responsibilities before pricing them.

For every row, mark:

• Included at a fixed amount
• Included as an allowance
• Excluded
• By owner
• Not stated
• Alternate price

“Included” is not enough when the quantity, quality, or installation standard is unclear. Record the product, area, count, or performance basis where it affects price.

Examine allowances and unit prices

An allowance postpones a price decision. Compare the allowance amount, what it covers, taxes, delivery, waste, installation, overhead, and the method used to adjust the contract when actual cost differs.

Unit prices are useful for uncertain quantities such as repair areas, excavation, or replacement of concealed materials. Define the unit, measurement method, and whether overhead is included.

Large or numerous allowances can make a proposal look complete while leaving substantial cost unresolved.

List exclusions and assumptions

Read exclusions before the total. Common items include design, engineering, surveys, permits, utility fees, hazardous-material work, temporary utilities, owner relocation, protection of occupied areas, patching, painting, testing, landscaping, and after-hours work.

Assumptions may be equally important: normal working hours, clear site access, available parking, reusable electrical service, sound concealed framing, or no contaminated soil. Assign each assumption to the party best able to investigate or control it.

Compare schedule and capacity

Record proposed start, duration, major milestones, long-lead items, working days, crew assumptions, and owner decision deadlines. Ask which staff will be assigned and what other work competes for those people.

A short duration may exclude approval time, procurement, inspections, testing, or closeout. Use the construction management guide to identify activity inputs, responsible parties and completion evidence rather than comparing only completion dates.

Evaluate qualifications and project controls

Price is one part of selection. Review relevant project experience, license and insurance status where applicable, references, safety practices, communication, supervision, quality control, subcontractor approach, change-order procedure, and closeout process.

Verification should use current official or primary sources when possible. Do not rely solely on logos or claims in a proposal.

Verify the license at the state source

Check the license yourself before comparing bids in detail. A license number printed on a proposal, truck, or website only tells you which record to look up.

Record the license number, the name exactly as it appears on the state record, the status, and the date you checked it in the bid worksheet. The name on the contract should match the licensed entity. If a record does not match the company in the proposal, ask the bidder to explain before you go further.

A state license does not verify insurance limits for your project. California’s CSLB suggests asking for a copy of the certificate of insurance or the name of the insurance carrier and agency so you can confirm coverage. Washington L&I also suggests considering a performance bond for larger projects.

California has a payment rule that is useful when comparing proposals. CSLB states that a down payment on a home improvement contract should not exceed 10 percent of the contract price or $1,000, whichever is less, unless the contractor has a Blanket Performance and Payment Bond on file with CSLB. A bid that asks for more without that bond is a reason to stop and ask questions. Payment rules differ in Oregon and Washington, so check the current consumer guidance from CCB or L&I for those projects.

Both CSLB and L&I recommend getting at least three written bids. CSLB also warns that a bid substantially lower than the others may mean the contractor made a mistake, which is why this page normalizes scope before comparing totals.

Seismic retrofit contractor checks

A seismic retrofit bid has to show what will be built, which design it follows, and how the work will be permitted and inspected. Comparing the price per bolt or per foot of bracing is not enough on its own, because the bids may be following different designs. The earthquake retrofit cost guide lists the quote lines to request for anchors, bracing, access and permits.

Does the house need an engineer or a prescriptive plan set?

Some houses can use a prescriptive, pre-engineered plan set instead of a project-specific engineered design. FEMA P-1100 is a prestandard for assessing and retrofitting one- and two-family wood light-frame dwellings, and it is supported by plan sets for crawlspace cripple walls and foundation anchorage (Volume 2A), living space over a garage (Volume 2B), and masonry chimneys (Volume 2C).

Local programs set their own eligibility. Seattle’s Earthquake Home Retrofit (EHR) plan set, for example, covers anchoring the house to the foundation and bracing cripple walls in the basement or crawlspace, and lists eligibility questions on its cover sheet. Seattle says homes that do not qualify can submit a voluntary retrofit designed and stamped by an engineer. The city also states that the program will not “earthquake proof” a home.

Ask each bidder:

• Which plan set or engineered design is the bid based on, and does the house meet that plan set’s eligibility questions?
• If an engineer is involved, who hires the engineer, and is the engineer’s fee in the bid or excluded?
• Which items are outside the plan set, such as chimneys, and are they excluded or priced separately?

Documents to request

• The plan set sheets or the engineer’s drawings the bid follows
• Who will apply for the building permit, and the permit number once issued
• The inspection steps the permit requires and who schedules them
• A written scope that lists anchors, bracing, and connections by location rather than a single lump sum

Warning signs in seismic retrofit proposals

• The bidder proposes to skip the permit or says inspections are not needed
• The bidder cannot say whether the house qualifies for the local plan set or needs an engineer
• The proposal promises that the house will be “earthquake proof”
• In California, the requested down payment exceeds the CSLB limit described above without a Blanket Performance and Payment Bond
• A training or certification claim that the bidder cannot identify by issuing organization; verify any credential with the organization that issued it, separately from the state license

Coastal project bid questions

Coastal work adds flood, wind, and corrosion requirements that some bidders may not price. Use the coastal construction guide to understand the design issues, then ask each bidder to show how the proposal handles them.

• Comparable coastal work. Ask for addresses or permit numbers of similar coastal projects and whether those permits received final inspection. Treat references as unverified until you can check the permit record with the local building department.
• Flood zone and elevation. Ask which flood zone on the Flood Insurance Rate Map applies and who will provide elevation documentation.
• V-zone design. If the site is in a coastal high hazard area (V zone), ask who will provide the design certification. FEMA’s Home Builder’s Guide to Coastal Construction (FEMA P-499) includes a fact sheet on V-zone design and construction certification.
• Corrosion-resistant materials. Ask the bidder to list fastener, connector, and flashing materials by product and grade rather than writing “per code.”
• Coastal and shoreline permits. Ask who identifies and obtains any coastal or shoreline approvals required by the city, county, or state, and whether that time is in the schedule.

What not to say to a contractor during bidding

Most bidding problems start with commitments made too early. Avoid these until the scope is normalized and the contract is written:

• Agreeing verbally to scope changes. Put every change in writing so all bidders price the same work.
• Offering to skip the permit to save money. Unpermitted work can leave you without inspection records.
• Sharing one bidder’s total with another before scopes are compared. It invites price matching on different scope rather than clarification.
• Promising payment terms before you have checked the state’s rules on down payments and progress payments.

Saying “I want to understand what is included” is more useful than naming a target price.

Final comparison checklist

• Confirm every bidder used the same documents
• Reconcile scope line by line
• Separate fixed prices, allowances, and unit prices
• Price or assign every exclusion
• Test schedule assumptions and long-lead items
• Verify qualifications through current sources
• Check each license at CSLB, CCB, or L&I and record the date
• For seismic retrofits, confirm the plan set or engineered design, permit, and inspections
• For coastal sites, confirm flood zone, elevation documentation, and corrosion-resistant materials
• Compare change-order and payment procedures
• Identify remaining owner risk after award
• Document clarifications in the final agreement

Sources and limitations

This guide was reviewed against consumer contracting guidance from the Federal Trade Commission and general procurement principles used in public and private construction. License and payment guidance was checked on October 6, 2026 against the CSLB guide to finding the right contractor, CSLB contract guidance, the Oregon CCB license search, and Washington L&I contractor guidance. Seismic retrofit references are FEMA P-1100 and the Seattle SDCI Earthquake Home Retrofit presentation (2025). Coastal references are the FEMA Elevation Certificate and instructions and FEMA P-499.

The CSLB payment limit and bond exception were rechecked October 8, 2026. This revision adds the quick comparison, hypothetical clarification row and worksheet access; the other source checks retain their dates above.

This page does not list, recommend, or rank contractors. State rules and agency tools change; confirm current requirements with the agency before signing.

Contract requirements and consumer protections vary by state and project type. Obtain legal and professional advice for a specific agreement.