How to Get Multiple Bids From Contractors (And Actually Compare Them)
Why Most Homeowners Compare Bids Wrong
Getting multiple bids is the right instinct. But most homeowners compare the bottom-line number and pick the cheapest — then discover midway through the project that the cheap bid excluded half the scope. The goal isn't to find the lowest number; it's to find the best value from a contractor you can trust.
Step 1: Write a Scope of Work Before You Call Anyone
Every contractor should be bidding the same job. Without a written scope, each contractor invents their own version of the project and you end up comparing incomparable proposals. Your scope should include:
- Exact rooms or areas affected
- What is being demolished or removed
- Material specifications (or allowances if you haven't chosen yet)
- Permit requirements you're aware of
- Desired start date and completion deadline
- What the contractor is not responsible for (items you'll handle yourself)
A one-page scope document dramatically reduces the chance of scope mismatches between bids.
Step 2: Source at Least Three Qualified Contractors
Cast a wide enough net to ensure you have real competition. Good sources include:
- Directory listings with verified licenses (like those in our city contractor pages)
- Personal referrals from neighbors who completed similar projects
- Your municipality's licensed contractor lookup tool
- Architect or designer referrals if you're using one
Screen each candidate before requesting a full bid: verify their state license is active, confirm they carry general liability and workers' comp insurance, and check that their portfolio includes projects similar to yours in scope and budget.
Step 3: Conduct a Walkthrough With Each Contractor
A good contractor won't bid accurately from a phone call. Schedule a 30-minute in-person or video walkthrough for each bidder. This lets them assess existing conditions (structural, plumbing, electrical) that aren't visible in photos and price accordingly. Contractors who bid without seeing the site often add large contingencies — or omit them and hit you with change orders.
Step 4: Request Itemized Bids
Ask explicitly for a line-item breakdown, not a single lump sum. A properly itemized bid includes:
- Demo and preparation costs
- Each trade's labor (framing, plumbing, electrical, drywall, tile, etc.)
- Material costs or allowances by category
- Permit and inspection fees
- GC overhead and profit as a line item or percentage
- Contingency (if included)
This structure lets you compare section by section and immediately flag if one contractor forgot to include plumbing rough-in or is pricing tile labor at half the going rate.
Step 5: Build a Comparison Spreadsheet
Once you have three bids, create a simple spreadsheet with each contractor as a column and each line item as a row. Fill in the numbers from each bid. You'll instantly see where contractors diverge — and those differences are the most important questions to ask before signing anything.
Common divergences that signal risk: one contractor's material allowances are half the others', one skipped permit fees entirely, or one has zero contingency on a project where asbestos testing is pending.
Step 6: Negotiate — But Not Just on Price
After your analysis, it's appropriate to negotiate. But focus on value levers, not just price cuts: ask if they can sharpen their material sourcing, adjust the payment schedule to reduce your upfront exposure, or add a specific warranty term. Contractors who immediately slash their number without adjusting scope are either padding the original bid or creating a problem for later.
The bid process takes time — typically 1–2 weeks to gather all three estimates. It's worth it. Projects where homeowners took shortcuts in contractor selection account for the majority of construction disputes and cost overruns.
Frequently Asked Questions
- How many bids should I get for a home renovation?
- Three bids is the industry standard for most remodels. For projects over $50,000 or highly specialized work (structural, historic), getting four to five bids is worthwhile. One bid gives you no baseline; two creates a binary choice with no tiebreaker.
- Should I tell contractors what the other bids are?
- No. Revealing competing bids before you've made a decision encourages contractors to underbid and make up margin through change orders later. If a contractor asks, say you're comparing a few proposals and will decide based on price, timeline, and references.
- What should I send contractors before asking for a bid?
- Send a written scope of work, any architect or designer drawings, your preferred timeline, and a clear list of what's included and excluded. The more specific your request, the more comparable and accurate the bids will be.
- Why are two bids sometimes $30,000 apart for the same project?
- Contractors price risk differently, carry different overhead, and may interpret the scope differently. A large price gap usually means one contractor missed something, one is pricing in a large contingency, or they're targeting different quality tiers. Always ask both to walk through their assumptions.