How to read a contractor's bid line by line

Two bids for the same job can differ widely, and the total alone won't tell you why. A written estimate describes the work, the materials, the completion date and the price. Lay two or three bids side by side against that list. The differences show up as missing lines, vague materials or a schedule one contractor left out.

What each bid should say

The work. A description of what will be done, specific enough that two contractors are pricing the same job.

The materials. The maker and the brand. "Install upper and lower maple kitchen cabinets" by a named maker and brand is easier to compare than "install kitchen cabinets".

The schedule. The completion date belongs on the estimate, and the contract adds the estimated start and completion dates. On a large job, look for milestone dates for each stage too.

The price. The total for the work described.

Permits. Who pulls the building permits. A contractor who tells you to get them yourself is a warning sign.

Subcontractors. Any subcontractors the job needs. A bid that lists them shows who will be in the house.

The contractor. The business name, address and license number, and proof of insurance.

An annotated example

What to do next

Write down each line from each bid in one table. Mark the lines where a bid is missing something or is vaguer than the others, and ask each contractor to fill them in. The lowest bid isn't automatically the one to take, and a large gap between estimates calls for an explanation. Before you settle on one, ask people you trust about the contractors, and check for complaints with local builder groups or consumer officials. Keep the final versions with the project's records, since the contract is built from the bid you accept.