How to Compare Contractor Quotes

Two quotes for the same job can differ by thousands of dollars, and the cheaper one is not always the better deal. The difference usually comes from what each quote includes, not from how much each contractor charges for the same work. The goal of comparing quotes is to line them up so the totals mean the same thing.

Make the quotes comparable first

Before you ask anyone to quote, write down the job in one place and give every contractor the same description:

• What exactly is being done, with measurements where they apply: square footage, linear feet, number of windows or fixtures.
• The material or product you want, by brand and model if you have chosen one, or the quality level if you have not.
• What is being removed, and who is responsible for hauling it away.
• Any condition that could change the price, such as stairs, a second story, a tight crawl space or a finished surface that must be protected.

If one contractor measures and another guesses, or one quotes a basic product and another a premium one, the totals cannot be compared. Ask each bidder to state what they priced.

What an itemized quote should list

• Labor and materials, shown separately where possible.
• Equipment or product by brand and model.
• Removal and disposal of the old material.
• Permits and inspections, and who pays for them.
• Cleanup, and repair or finishing of anything disturbed, such as drywall, paint or flooring.
• The start date, the expected duration and what delays could change it.
• The warranty on labor and the warranty on the product, each in writing.
• The payment schedule, tied to stages of the work.
• The contractor's name, license number where your state requires one, and proof of insurance.

A single lump sum with no detail is not wrong by itself, but it gives you no way to see what is missing. Ask for the breakdown.

Allowances and change orders

An allowance is a placeholder amount for something you have not chosen yet, such as tile, fixtures or lighting. A low allowance makes a quote look cheap and sends the real cost to you later when your choices cost more. Ask each bidder for the allowance amounts, and compare quotes with the same allowances.

A change order is a written agreement to change the price or scope after work starts. Reasonable contractors use them; the point is that nothing extra should be billed unless you approved it in writing first. Ask how surprises, such as hidden rot or old wiring, are handled and priced before you sign.

Using our estimates as a sanity check

Open the calculator for your project, choose your state and the options you are considering, and compare its range with the quotes you receive. A quote inside the range is in line with the sources we use. A quote far above or below deserves a question, not an automatic rejection. Ask what is included, what is excluded and why the price is different.

A low quote can mean an efficient contractor, a smaller scope or corners cut. A high quote can mean a premium product, a hard job or simply a busy contractor. The calculators cannot know which, but they help you ask the right question. Our category guides list every calculator side by side:

• Plumbing & Water Costs
• Roofing & Exterior Costs
• Door & Window Costs
• HVAC & Structure Costs
• Interior & Remodel Costs
• Electrical & Appliance Costs

Warning signs

• Pressure to sign today, or a discount that expires when you leave.
• No license or insurance information, or reluctance to share it where your state requires one.
• A very large payment demanded before any work begins. Many states limit deposits, so check your state's rules.
• A quote that is vague about materials, such as "good quality" with no brand or model.
• No written contract, or a contract that does not match the quote.
• A request for payment only in cash, or an offer to skip the permit.

Payment and paperwork

Tie payments to progress instead of paying everything at the start, and keep the final payment until the work is finished and, where a permit applies, inspected. Keep the signed quote, contract, change orders, permit sign-off, warranties and receipts together. They matter for warranty claims, insurance and when you sell the house.

A quote comparison sheet

Fill in one column per contractor. If a cell is empty, the quote does not say, and that is something to ask.

You can print this page to keep the sheet next to your quotes. If you are weighing a repair against a replacement, see repair or replace, and for whether the permit is in the price, see home project permits.