Bid Comparison

Compare Contractor Bids Before You Choose a Contractor

Contractor bids should be compared on the same scope.

A side-by-side total is useful only when each contractor is pricing the same work, carrying realistic allowances, and making the same major assumptions.

CostCheckGPT calls this scope normalization.

Why contractor bids are difficult to compare

Every contractor has a different way of writing an estimate.

One contractor may include permit fees. Another may exclude them.

One contractor may include painting after electrical and plumbing work. Another may stop at drywall.

One contractor may include $12,000 for finish materials. Another may carry $5,000.

The bids can describe the same renovation and still represent different amounts of work.

A useful comparison has to separate those differences.

How to compare contractor bids line by line

  1. 1Build one master scope. Create a list of everything the project is expected to require.
  2. 2Mark each contractor's coverage. For every scope item, identify whether it is included, excluded, an allowance, owner supplied, unclear, or missing.
  3. 3Normalize allowances. Adjust major placeholder amounts to a common reasonable assumption so one contractor is not made to look cheaper by carrying a smaller allowance.
  4. 4Account for excluded work. Add likely exposure for required work that one contractor excluded and another included.
  5. 5Compare normalized totals. Once the scope is aligned, compare the expected project exposure and the quality of the proposal.

Example contractor bid comparison

Illustrative example · Not a customer file
CategoryBid ABid BBid C
Stated total$94,500$105,000$82,000
DemolitionIncludedIncludedExcluded
PermitsIncludedIncludedExcluded
Tile allowance$8,000$9,000$3,500
PaintingIncludedIncludedExcluded
CleanupIncludedIncludedUnclear
Normalized exposure$94,500$105,000$96,000 to $104,000

Bid C begins as the lowest number.

Its exclusions and lower allowance create additional expected exposure.

The normalized comparison gives the owner a clearer view of what each contractor is actually offering.

What should be included in a contractor bid comparison?

What is scope normalization?

Scope normalization is the process of putting contractor bids onto the same basis of comparison.

The stated totals remain visible.

The comparison also accounts for differences in included work, exclusions, allowances, owner-supplied items, and major assumptions.

This helps reveal whether a price difference is coming from contractor pricing or from different definitions of the project.

Read the Scope Normalization Guide

How CostCheckGPT is designed to compare bids

CostCheckGPT is being built to organize multiple contractor bids into a consistent structure.

The planned comparison identifies:

The goal is to help the owner understand the offer behind each number.

Compare the bids before you compare the contractors.

CostCheckGPT is currently in development. Join early access to be notified when bid comparison opens.