Comparing contractor quotes by the bottom-line total is the least useful way to choose. Two bids for the same project can land close in price yet describe very different work. This guide walks through how to line up quotes fairly, what to check, and what to ask each contractor before you sign.
Start With One Written Scope
Before you collect quotes, define the project in writing and give every contractor the same details. If you change the scope between meetings, the quotes no longer describe the same job and cannot be compared fairly.
Include reference photos and sample specifications so each contractor prices the same materials and finish level. A clearly defined scope is the foundation for any fair comparison.
- Write down what you want, including materials and finish level
- Give identical plans and specifications to every contractor
- Include reference photos and sample specs with the request
- Do not add or change items between contractor visits
Compare Line Items, Not Totals
The total at the bottom hides what is actually included. Line items reveal differences in tile, cabinet grade, and whether work like electrical rough-in is included or left to become a change order later.
Quotes often differ in scope, allowances, finish levels, and exclusions. Until quotes are leveled to the same scope, the totals cannot be compared fairly. A low quote may exclude items, carry small allowances, or assume lower-grade materials.
- Check that each quote lists labor, materials, equipment, permits, and subcontractor fees
- Compare allowances for fixtures, tile, and cabinets, and note what happens if you exceed them
- Look for exclusions and items marked as "by others" or "not included"
- Confirm whether permits and inspections are in the price
- Compare scope first, then price, schedule, references, and warranty
Understand Markups and Payment Terms
Markups vary by trade and by contractor type, which helps explain some price gaps. Typical 2026 US figures put material markups around 7.5%–15% (up to 20% for special-order items), subcontractor costs around 10%–20%, full-service general contractor or remodeler overhead and profit around 20%–35% of total cost, and design-build firms around 25%–35%. Your region and project complexity will move these numbers.
How a contractor wants to be paid tells you a lot. A reasonable deposit runs 10%–33% down, with the balance tied to completed milestones. Some states cap deposits by law: California limits home-improvement deposits to 10% of the contract or $1,000, whichever is less, and Maryland caps them at 33%. Check your own state's rules.
- Ask what is being marked up and why
- Treat a deposit over 50% as a red flag
- Tie remaining payments to completed milestones, not dates
- Confirm your state's deposit rules before signing
Check the Contractor, Not Just the Price
Look for contractors with experience in the type of project you are planning. Check with your local Better Business Bureau for complaints, and confirm the contractor is properly licensed and insured so you are protected if accidents or damage occur.
Ask for references from past clients and actually contact them. Pay attention to communication style: a good contractor answers questions and keeps you updated on progress.
- Verify license and insurance
- Check the Better Business Bureau for complaints
- Ask for and call references from similar projects
- Note how quickly and clearly the contractor responds
Questions to Ask Each Contractor
If quotes show vastly different prices, ask questions rather than assuming the lowest is best. Getting answers in writing helps you avoid scams, confirm you are quoted fairly, and get a better sense of the contractor.
Use the same question list for every bidder so you can compare answers side by side.
- What exactly is included, and what is excluded?
- Are permits and inspections included?
- What are the allowances, and what happens if I go over?
- How will change orders be priced and approved?
- What is the payment schedule and deposit?
- What warranty covers labor and materials?
- Who will be on site, and who is my main contact?
- Can you provide references from projects like mine?
Put the Comparison Together
Build a simple table with one column per contractor and one row per scope item, allowance, and term. Fill it in from the written quotes, not from memory. Where a quote is vague, ask the contractor to clarify in writing before you compare.
Once scope is leveled, weigh price against schedule, references, warranty, and how the contractor communicates. The lowest total is not automatically the best value.
- Use one row per item so gaps are obvious
- Mark items that appear in one quote but not another
- Get clarifications in writing and update the table
- Choose based on scope, price, schedule, references, and warranty together
Sources
- Compare two contractor quotes side by side | CostReno
- How to Compare Contractor Quotes (2026): Spot a Padded Bid
- The Best Home Improvement and Repair Contractors (2026 Guide)
- How to Compare Contractor Quotes Line by Line | Bid Sharp
- How to Compare Home Improvement Quotes - Zephyr Thomas
- Compare Contractor Quotes with Confidence
- How to Choose the Right Home Improvement Contractor - Incline Magazine
- How to Compare Home Remodeling Contractor Quotes
CostBrick is an information and referral service. Verify licence and insurance before hiring. See our project checklist and verification guide.