A step-by-step guide to reviewing, organizing, and refining contractor proposals so you can confidently choose the right builder
Introduction
Once you’ve received bids from multiple contractors, the next step is understanding how they compare—and making sure they reflect your actual project scope. Each contractor may present their proposal differently, with varying levels of detail, assumptions, and exclusions. That’s why comparison alone isn’t enough.
This page walks you through how to:
- Build a simple side-by-side comparison of bids
- Identify gaps, unclear pricing, or differences in scope
- Ask follow-up questions or request revisions to get better alignment
- Understand what’s normal in a bid and what should be clarified before making a decision
With the right approach, even a first-time project owner can confidently review proposals and take the next step toward hiring a contractor.
Step 1: Gather All Bids and Documents
Before comparing, make sure you’ve received full proposals from each contractor you invited to bid. Create a folder (digital or printed) with:
- Each contractor’s bid
- Any notes or emails related to RFIs (questions they asked)
- Site visit notes
- The scope of work or plans you provided
Make sure each contractor was bidding on the same scope. If you notice one is missing a major item, like demo, flooring, or painting, note that now. You’ll follow up later if needed.
Step 2: Create a Comparison Document
A simple spreadsheet or chart will help you line everything up side by side. You don’t need special software—Google Sheets or Excel works great.
Across the top row, list each contractor’s name. Down the left side, list the categories you want to compare.
Key Categories to Include:
Category | Example Notes |
Total Price | Lump sum or itemized total |
Framing & Structure | Includes demo and framing scope |
Electrical | Fixtures, rough-in, panel work |
Plumbing | New lines, fixture install, water heater |
HVAC | New system, ductwork, or updates |
Drywall & Insulation | Interior wall work |
Flooring & Tile | Types included, allowance amount |
Cabinets & Countertops | Custom or prefab? Included or separate? |
Paint & Finishes | What surfaces are being painted |
Appliances | Included, allowance, or by owner? |
Permits & Fees | Covered by contractor? Separate? |
Cleanup & Disposal | Jobsite cleanup, hauling debris |
Start Date & Duration | Estimated start and total timeline |
Payment Schedule | Deposit amount, progress payments |
Allowances | Tile, fixtures, lighting, etc. |
Exclusions | Clearly listed or vague? |
Warranty Info | Coverage duration and scope |
Notes / Assumptions | Any unique contractor notes or conditions |
Step 3: Fill It In With What Each Bid Includes
Start with the first contractor’s bid and go through it line by line, entering costs or notes into your comparison sheet. Then repeat for the next contractor, and so on.
- If a bid doesn’t break out costs, leave that cell blank or ask for clarification
- Highlight anything that seems unclear or missing so you can follow up
- Use color coding if helpful: green for complete, yellow for vague, red for concern
Step 4: Adjust for Allowances and Exclusions
Most bids include allowances for things like tile, lighting, or cabinetry. Make sure to compare those values. A contractor who includes $2,000 for tile is not the same as one who includes $7,500, even if their total prices are close.
Also compare exclusions. These might include:
- Permits
- Landscaping
- Utility connection fees
- Appliances
- Final cleaning
If one contractor excludes items another includes, note that clearly. These costs may come out of your pocket later if not addressed upfront.
Step 5: Compare the Non-Price Factors
When bids are close, what often sets contractors apart is how they communicate and operate.
Look for:
- Did they answer your questions clearly?
- Were they on time and prepared for the walkthrough?
- Do they have experience with your type of project?
- Do you feel like they “got” your goals and vision?
- Are they direct and transparent, or vague and hard to pin down?
- Will you have a consistent point of contact during the job?
Even if one bid is slightly higher, the long-term benefit of better communication and reliability can outweigh the initial savings.
Step 6: Follow Up With Questions or Revisions
Even thorough contractor bids often leave some room for clarification. Once you’ve reviewed the proposals, it’s normal to follow up with questions or request revisions. These follow-ups ensure you’re making an apples-to-apples comparison and give the contractor a chance to clarify or expand their scope.
What’s Next: Asking for Clarifications & Revisions
Now that you’ve compared bids, you may have a few open questions. The next section walks through how to send follow-up questions to contractors and provides example language for how to ask clearly and respectfully.
Continue to Asking for Clarifications & Revisions to finalize the details before making your hiring decision.