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Contractor bid comparison template

The lowest bid is often the lowest because of what it leaves out. In the example below, Contractor C comes in $14,300 under Contractor B. But C leaves out demolition, painting, permits and cleanup, and $14,500 of its price is allowances. Before you compare totals, mark what each bid includes, line by line, in the template below.

For homeowners comparing contractor bids on their own remodel. The three example bids are a made-up kitchen job. Replace them with yours.

Your bids

For each line, mark what the bid says: included at its price, an allowance (a placeholder amount for something not chosen yet), or not in the bid at all.

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How the bids compare

The lowest bid ($41,900) comes in $14,300 under the highest ($56,200). Before you weigh that gap, check what each price leaves out.

Each scope line, bid by bid
ScopeContractor A$48,500Contractor B$56,200Contractor C$41,900
Demolition & disposalIncludedIncludedNot in bid
Framing & structuralNot in bidNot in bidNot in bid
PlumbingIncludedIncludedIncluded
ElectricalIncludedIncludedIncluded
HVAC & ventilationNot in bidNot in bidNot in bid
Drywall & insulationIncludedIncludedIncluded
FlooringIncludedIncludedIncluded
Cabinetry & millworkAllowance$12,000IncludedAllowance$9,000
Countertops & surfacesAllowance$4,500IncludedAllowance$3,500
Fixtures & appliancesIncludedIncludedAllowance$2,000
Painting & finishIncludedIncludedNot in bid
Permits & inspectionsNot in bidIncludedNot in bid
Final cleanupIncludedIncludedNot in bid
Allowances in the price$16,500 (34%)None$14,500 (35%)
Down payment10% of the price8.9% of the price19.1% of the price

No bid includes Framing & structural, HVAC & ventilation. If your job needs that work, ask every contractor to price it.

Questions to send each contractor

Contractor A

Leaves out what another bid includes: Permits & inspections.

  1. Cabinetry & millwork: can the allowance be replaced with a fixed price and named assumptions?
  2. Countertops & surfaces: can the allowance be replaced with a fixed price and named assumptions?
  3. Permits & inspections: is it included? If not, provide a fixed add price.

Contractor B

No questions for this one. It includes every line the other bids cover, with no allowances.

Contractor C

Leaves out what another bid includes: Demolition & disposal, Painting & finish, Permits & inspections, Final cleanup.

  1. Demolition & disposal: is it included? If not, provide a fixed add price.
  2. Cabinetry & millwork: can the allowance be replaced with a fixed price and named assumptions?
  3. Countertops & surfaces: can the allowance be replaced with a fixed price and named assumptions?
  4. Fixtures & appliances: can the allowance be replaced with a fixed price and named assumptions?
  5. Painting & finish: is it included? If not, provide a fixed add price.
  6. Permits & inspections: is it included? If not, provide a fixed add price.
  7. Final cleanup: is it included? If not, provide a fixed add price.

Have the bids as PDFs? Bid Room in Project Pilot Complete reads them and fills in these 13 lines for you. To start a project, take the free readiness assessment. No card needed.

Start the free readiness assessment

Why the totals don't compare yet

A total only means something next to the scope it pays for. The FTC's advice on hiring a contractor is to get more than one written estimate, each describing the work, the materials, the completion date and the price. It also says not to take the lowest bid automatically, and to ask for an explanation when the bids are far apart.

When a bid doesn't mention a line, mark it not in the bid. If it isn't written down, it isn't included, and a change order is a bad way to find that out. The 13 lines won't catch everything, either: who buys the materials, how hidden damage gets priced and what "done" means are in our seven scope questions to settle before comparing bids.

The lowest bid has the least work at a fixed price

The lowest bid has the least work at a fixed priceThe three example kitchen bids, each split into its fixed part and its allowances. Contractor A: $48,500, of which $16,500 is allowances; it leaves out permits. Contractor B: $56,200, with no allowances. Contractor C: $41,900, of which $14,500 is allowances; it leaves out 4 lines.Contractor A$48,500$16,500 in allowances, leaves out permitsContractor B$56,200leaves out nothing the others priceContractor C$41,900$14,500 in allowances, leaves out 4 lines$0$20k$40k$60k
Black: the fixed part of each price. Gold: allowances. The made-up kitchen bids from the tool above, October 2026.

Allowances are the part of a bid that can move

An allowance is a placeholder for something you haven't picked yet, like cabinets or a countertop. Pick something that costs more and the price goes up. So a bid heavy with allowances looks low right up until you start choosing. A and C both look cheaper than B, and about a third of each is allowances.

Ask each contractor the question Project Pilot asks about every allowance: can it become a fixed price, with the assumptions written down? A fixed price for a named cabinet line is a number you can compare. A $12,000 cabinet allowance isn't. Where an allowance has to stay, ask what it covers, whether tax and delivery are in it, and how markup works if your pick costs more.

Check the down payment

The FTC notes that some states limit how much a contractor can ask for up front, so check the rule where you live. In California, the down payment on a home improvement job can't be more than $1,000 or 10% of the price, whichever is less, even for special-order materials. On any job over $10,000, that's $1,000. All three example down payments would be over it, and C's $8,000 is eight times it. Wherever you are, the FTC says not to make the final payment until the work is done and you're satisfied with it.

How the comparison works

The tool uses the 13 scope lines of the Bid Room in Project Pilot Complete, from demolition to final cleanup. A line counts as left out of a bid when at least one other priced bid includes it or has an allowance for it. A line no bid prices isn't counted against anyone: your job may not need framing or HVAC, and if it does, ask every contractor to price it. The allowance share is the bid's allowances added up and divided by its price. The down payment share is the down payment divided by the price.

Nothing is estimated, scored or ranked. The tool only rearranges what the bids say. Your bids are saved in the page address, so you can bookmark the comparison or send someone the link.

Next step: send the questions

Send each contractor their list of questions and ask for a revised bid on the same lines. When the revised bids come back, you can finally compare the totals.

Marking 13 lines by hand gets old by the third bid. In Project Pilot Complete, you upload each bid as a PDF or a photo, and Bid Room sorts its line items into the same 13 lines, marks each one included, allowance or missing, and shows the spread. It's $199 once per project, not a subscription.

Want a number of your own before the bids come back? Try the kitchen, bathroom or home addition cost calculator. Or take the free readiness assessment: it gives you a preliminary room-by-room estimate.

Questions people ask

How many bids should I get?

At least two. The FTC says to get more than one and doesn't name a number. More bids only help if each one prices the same lines: two bids on the same scope tell you more than four that each cover something different.

Is a bid the same as a contract?

No. A bid is a price for the work. The contract is what you sign. The FTC says to ask for a written contract even if your state doesn't require one. It should list the contractor's name, address, phone number and license number, an estimated start and finish date, and any promises made about scope and cost. If you sign it at home, it should also say in writing that you can cancel within three business days.