How to Compare Contractor Bids for Your Next Home Project

Learn why you should always get multiple contractor bids for your home projects

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Photo: Jacob Lund / Adobe Stock
A woman talking on the phone while looking at her laptop
Photo: Jacob Lund / Adobe Stock
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Ready to start your next home project, from a kitchen remodel to roof repairs? Then you’re going to want to get bids from contractors in your area. However, you should reach out to more than one professional or company. Learn the benefits of getting multiple contractor remodeling and construction bids, how to negotiate, and more.

Benefits of Getting Multiple Contractor Bids

No matter the size of your project, you’ll want to be sure you’re getting the best quality and value from a contractor. Here’s why you should aim to get multiple bids from contractors (at least three) for your next home project.

You Have More Options

Whether you’re doing a large-scale home addition or a smaller project like adding pavers to your backyard garden, how do you know if the estimate you’re given is competitive? You get bids from multiple contractors! 

This allows you to compare not only price, but everything from years of experience to cleanup. Some contractors may do more than others, and multiple bids will highlight this. Having at least three options should provide you with the clear winner who will be best for your upcoming home project.

You’ll Save Money With the Best Price

Requesting three bids from qualified home contractors before hiring can potentially save you a great deal of money. You may be surprised at how different the prices for each contractor will be.

Keep in mind that the lowest price isn’t always the best option. Be sure you look at reviews, years of experience, before and after photos, and more to ensure you get quality work, regardless of the quoted price.

Talking to Multiple Contractors Helps You Vet Them

Choose a few contractors in your area who have good reviews and ratings and do a bit of homework on each. Are they communicative? How many years of experience do they have? Do they have experience working on your specific project? Are they licensed (if applicable)? 

Once you have chosen a few contractors and/or companies, reach out for bids. This way, you’ll be able to feel confident you’ve chosen the right contractor for the job.

You’ll Get the Best Customer Service and Communication

Getting three estimates from contractors will give you an idea of who has the best customer service and communication level. You want the people you hire to clean up properly, show up on time, and have a friendly attitude. You should get quality service that meets your expectations.

How Do You Get Bids From Contractors for Home Projects?

A couple walking with a contractor on a residential road
Photo: kali9 / E+ / Getty Images

Getting bids from contractors and local handypeople for home projects involves a systematic process to ensure you hire the best contractor to meet your needs within your budget. Here are the steps to follow.

Define Your Project

Clearly outline your project's scope, objectives, and desired outcomes. Be specific about what you want to achieve and any special requirements you may have.

Research Contractors

Ask for recommendations from friends, family, and neighbors who have had similar projects done. You can also check online reviews, local directories, and websites of professional organizations to find reputable contractors. 

Contact Multiple Contractors

Reach out to several contractors who specialize in the project you're planning. Provide them with a detailed project description or request for proposal (RFP). Remember to verify the contractors' licenses, insurance, and certifications to ensure they are qualified to work in your area.

Site Visit and Consultation

Schedule site visits with each contractor to walk them through your project, discuss your vision, and ask questions. Pay attention to how well the contractor communicates and whether they seem knowledgeable and professional.

Request Bids

Now, you’re ready to ask for bids. Ask each contractor to provide a written bid for your project. Ensure the bids include a detailed cost breakdown, including labor, materials, permits, and additional expenses.

You’ll also need a timeline for the project, including start and completion dates. Remember to ask about warranties and guarantees. Also, ensure you get payment terms and schedules in writing.

How to Compare Contractor Bids

So the bids have come rolling in and it’s time to make a decision. But first, you’ll want to compare each one to find the right contractor for the job. 

Here’s a look at how to compare bids from contractors:

Get a List of Material Costs

Be sure to get a list of materials used by the construction manager, including their costs. Then, check the actual prices online and compare this against the price quoted by each company.

Know Who’s Working

How many contractors or subcontractors will be working on your project? Find out this information and compare it across bids. More contractors could mean your project will be completed faster.

Get a Cost Breakdown

Find out the cost breakdown. Although contractors charge for labor and materials together, you’ll want to see a breakdown on paper for all bids before making your decision.

Negotiate for the Best Price

If you get a lower bid from a contractor who isn’t your top choice, you can always let the other contractor know that information. They may or may not be willing to work with a lower bid, but it never hurts to ask. You can also talk to them about buying the materials yourself to cut down your bill, so you only pay for labor.

However, contractors need to make enough profit themselves. Negotiating with a contractor can be a smart strategy, but the rate should be fair for both the homeowner and the contractor.

Read the Fine Print When Getting Bids From Contractors

Once you’ve picked your contractor, read the contract in its entirety. Look for hidden fees or any other red flags that could cost you time or money. Your dream home is just a contractor (or two) away. Use this guide to help find, vet, and hire contractors for your home renovation or upgrade today.

Stephanie Shaykin contributed to this piece. 

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