Home services
Last updated: 2026-05-24 · By Pebble Finds Editorial (Editorial)
Key takeaways
- Get at least three written estimates that describe the same scope of work.
- Compare materials, labor, permits, timeline, and exclusions—not just the total price.
- A bid far below the others can signal missing work or surprise change orders later.
- Ask each contractor to explain differences in writing before you choose.
- Never sign or pay a large deposit until you have reviewed a complete written contract.
Why comparing bids the same way matters
Home improvement projects can cost thousands of dollars, and choosing a contractor based on a single phone quote is risky. The Federal Trade Commission (FTC) recommends getting multiple written estimates and reading contracts carefully before you commit.
When bids use different assumptions—material grades, permit responsibility, or cleanup—you are not really comparing price. You are comparing different jobs. A structured bid review helps you see what you are actually buying.
Step 1: Define one scope for every bidder
Write a short project brief: rooms or areas affected, desired materials or quality level, whether you need permits, and your target timeline. Send the same brief to each contractor so everyone quotes the same work.
Include photos, measurements, and any inspection notes. If one contractor suggests a different approach, ask them to submit a separate optional line item so your base comparison stays apples-to-apples.
Step 2: Request written itemized estimates
Ask for written estimates—not verbal ballpark figures—that break out labor, materials, permits, disposal, and any allowances. The FTC hiring contractor guide advises caution when one bid is dramatically lower than others; that can mean cut corners, excluded tasks, or hidden charges added later.
Check whether sales tax, permit fees, and cleanup are included. Note warranty length, who pulls permits, and how change orders are priced before work starts.
Step 3: Compare line by line, not just the total
Build a simple comparison table: contractor name, license number, insurance verified (yes/no), start date, completion window, payment schedule, and total. Flag any bid that omits permits, uses vague material descriptions, or lacks a change-order process.
Price still matters—but clarity, references, and contract terms should weigh heavily. A mid-range bid with a detailed scope and fair payment milestones often beats the cheapest quote with gaps.
Step 4: Clarify differences before you sign
Schedule a short follow-up with your top two or three bidders. Ask why their totals differ, what assumptions they made, and what could trigger extra cost. Request revisions in writing if scope changes.
Your final choice should be backed by a signed contract that matches the accepted estimate. The FTC warns against paying the full project upfront and against contracts with blank spaces someone could fill in later. Keep copies of every estimate and email.