Getting three bids is easy. Comparing them is the hard part. Prices swing, scope lines don’t match, and the “cheap” option can balloon with add-ons.
Here’s a smart way to read bids so you can pick value, not trouble.
Why bids feel inconsistent
- Different scope, different price. One contractor includes permits, haul-off, and drywall patch. Another doesn’t. The FTC’s consumer guidance is simple: get written estimates from several firms and don’t automatically choose the lowest—ask why there’s a price gap.
- Allowances hide real costs. “Allowance” = a placeholder for items you haven’t picked yet (tile, fixtures). Low allowances make a bid look cheap now and expensive later. Lock specs before you compare.
- Change orders are real money. Any change after signing should be written, priced, and time-adjusted before work proceeds. That’s standard contract practice.
- Tight labor = fewer apples-to-apples bids. Many firms are booked. AGC’s 2024 survey found widespread difficulty filling craft roles and resulting project delays. Expect schedule to weigh as much as price.
A clean way to compare (use this for every project)
1) Standardize the scope.
Send all bidders the same bullet list: demo, disposal, framing/drywall, waterproofing, finishes, electrical/plumbing/HVAC, permits, inspections, cleanup. Ask them to mark included/excluded next to each. (It forces clarity and kills hidden line items.) Guidance from Texas agencies stresses written bids with clear contact info—use that as your baseline.
2) Replace allowances with real picks.
Pick fixtures, tile, and hardware up front. Where allowances remain, ask for the exact SKU, quantity, and unit price the allowance assumes. (That’s how you avoid a lowball “trap.”)
3) Confirm permits and inspections.
Who pulls the permit? What inspections are required? Get the permit number in writing before start. Texas consumer guidance: use local, permitted pros and keep documents.
4) Verify licenses for regulated trades.
- Electrical & A/C/Refrigeration: check TDLR status.
- Plumbing: check TSBPE.
License lookups and enforcement histories are public.
5) Check insurance.
Ask for a certificate of insurance (liability; workers’ comp if applicable) sent directly from the insurer.
6) Lock payment terms.
Tie payments to milestones, not dates. Know Texas ground rules: prompt-payment laws define timing on private projects and allow interest when payments lag; retainage rules also apply.
7) Watch for illegal offers.
If someone offers to “waive” your wind/hail deductible, that’s illegal in Texas. Walk away and report it.
What a good bid includes (quick checklist)
- Company info on letterhead, with license # where required.
- Detailed scope with inclusions/exclusions.
- Itemized labor and materials (or clear lump sum with an attachment that breaks it down).
- Allowances listed with assumed SKUs and unit prices.
- Schedule: start window and duration.
- Permits/inspections: who’s responsible.
- Change-order process: written, signed, priced before work.
- Payments tied to milestones; retainage if used.
- Warranty terms (labor and parts) in writing.
- Insurance proof (COI sent by carrier).
- Owner-provided context: Journal export + latest Jack Report™ shared with bidders (helps scope and pricing).
How to read two bids that look far apart
- If one is 20–30% lower: ask where they’re saving. Common answers: smaller scope, lower allowances, cheaper materials, no permit, or no cleanup. If they can’t show it, it’s probably not there.
- If timelines differ by weeks: ask about crew size, deliveries, and inspection slots. The AGC shortage means some firms simply have longer queues. Price a faster start if time matters.
- If exclusions differ: decide if you want one GC to handle everything. You can add scope to the low bid—but get it priced before you sign.
Texas add-ons that reduce stress later
- Attach your Journal export and Jack Report™ to each bid request. Organized history = faster, clearer quotes.
- Pre-bid photos + a one-page “site facts” sheet: access, parking, pets, HOA rules, panel amperage, shutoff locations, and any known moisture issues. Better inputs = cleaner bids.
- Apples-to-apples spreadsheet: list scope items down the left; bidders across the top. Mark Y/N and paste numbers. Gaps jump out.
- Two fresh references in the past 90 days: ask about schedule, change orders, and cleanup quality. (State and FTC-style tips emphasize references and written contracts.)
When to get a sanity check
Not sure if a bid is missing something—or if a change order is fair? Run a Jack Report™ and compare it to each bid; if the report flags issues a bid doesn’t address, ask the contractor to price that scope now. Ask a vetted expert at letsaskjack.com. If it’s beyond DIY, hire a licensed Texas pro through TradeCrews.
Bottom line
Bids feel confusing because they often aren’t the same job on paper. Standardize your scope, pin down allowances, confirm permits, verify licenses and insurance, and require written change orders. You’ll compare apples to apples, avoid “gotchas,” and pick the contractor who’s best for your job—not just the lowest number.