How to Compare Contractor Bids

Contractor bids are comparable only when they price the same scope, assumptions, quality level, schedule, and risk allocation. Before comparing totals, place each proposal into a common worksheet and identify what is included, excluded, allowed, assumed, or still unknown.

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 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. Request a simple logic-based schedule rather than a single completion date.

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.

Bid comparison worksheet

Item	Bidder A	Bidder B	Bidder C	Clarification needed
Base scope
Allowances
Alternates
Exclusions
Permit and fees
Schedule
Warranty
Contingency exposure

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
• 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.

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