Every contractor bid submitted to CostCheckGPT goes through the same seven checks, run by a licensed General Contractor in the project's jurisdiction. This page documents the full methodology. The inputs, the checks, the data sources, and what the output looks like. So you know exactly what you are getting before you submit a bid.
Every CostCheckGPT review is performed by a licensed General Contractor with active jurisdiction in the project location. AI tools assist with line-item parsing, math, and database lookups. A licensed GC reads the bid, makes the calls, and signs off on every flag in the memo.
License verification is reciprocal: the same licenses we hold ourselves are the licenses we verify on every contractor whose bid we review.
The methodology requires three inputs. With less than this, the review cannot be completed; with more, the review is sharper but no faster.
Optional but useful: prior bids on the same project for normalization, the contractor's license number to skip the lookup step, and the project drawings if they exist (for missing-scope detection).
Every line item is summed. The sum is reconciled against the stated contract total. The most common pattern in bids over $200,000 is a 5â25% gap between the sum and the total. Money the contractor expects you to pay but cannot tie to a specific line. Every gap over 1% is flagged with the dollar exposure documented and the percentage of the contract it represents.
This check has caught $60,000+ unexplained gaps on Manhattan rehabs and 12% padding rolled into "general conditions" on LA gut renovations. It runs first because it costs nothing to do and frequently ends the review on its own.
Bids are not directly comparable because contractors describe scope differently. One contractor's $42,000 kitchen line item may include cabinets, counters, and installation; another's may exclude appliances and hood vent. Scope normalization separates included work, excluded work, allowances, and duplicated items so the bid can be evaluated as as-built cost rather than headline price. Read more about scope normalization.
This check is the difference between picking the right contractor and picking the contractor who left the most out.
Allowances are placeholder dollar amounts in the bid for items not yet specified. Tile, lighting, fixtures, hardware. Two failure modes are common. First, padded allowances: a contractor sets a $5,000 lighting allowance for a project that will realistically spend $1,800, capturing the difference as profit. Second, underfunded allowances: a contractor sets a $4,500 tile allowance for a project where you will realistically spend $14,000, generating a $9,500 change order after you sign.
Every allowance line is reviewed against ZIP-level finish-product pricing for the project class. Padded allowances are flagged with a recommended range. Underfunded allowances are flagged for the change-order risk they create.
The contractor's license number is verified against the active license registry for the project jurisdiction.
An expired license, suspended license, or license class mismatch is flagged immediately. A contractor cannot legally pull permits without an active license; if you sign a contract with one, you have a $300,000 problem in 90 days when the building department refuses to inspect.
Labor and material rates in the bid are compared against current ZIP-level data. Material rates are pulled from regional supplier pricing for the project's primary trades. Labor rates are calibrated against local trade union and prevailing-wage data adjusted for residential remodel pricing. Items materially above market are flagged with the dollar exposure; items materially below market are flagged for the bait-and-switch risk they create.
Calibration is local because residential renovation pricing is local. A $140/sq ft kitchen labor rate is within market in Brooklyn and 40% above market in Phoenix. The ZIP determines which market.
The most expensive line items in any renovation are the ones not in the bid. Permit fees, demolition, debris disposal, dust protection, daily cleaning, dumpster rental, scaffolding, hoist permits, water and electrical shutoffs, asbestos testing in pre-1978 buildings, and trade-scope assumptions are all reviewed for gaps. Missing items are flagged with the realistic cost they will become as change orders after you sign.
For a list of the most common missing-scope items by project class, see contractor bid red flags.
Every flag in the memo is paired with specific language you can forward directly to the contractor. The output is not a list of complaints; it is a framed question or clarification request that protects the relationship while creating leverage. The negotiation script is the difference between "your bid is wrong" (which produces defensiveness) and "I noticed your line items sum to $227,450 against a $287,450 stated total. Can you walk me through what is in the gap?" (which produces a revised bid).
Most contractors revise their number when they see a memo from a licensed GC. The script gives you the exact language to make that happen.
The methodology produces a one-page Bid Defense Memo. The structure is fixed:
Delivery format is PDF. Standard turnaround is 12 hours from submission of a complete bid. Investor Pro subscribers receive priority 6-hour turnaround.
The methodology depends on six categories of public and licensed data, refreshed at the cadences below.
To be useful, every methodology must be honest about what it does not check. CostCheckGPT does not:
20 free first-memo slots are reserved each month for active flippers. Submit your bid, project ZIP, and contract total.
Get My Free Bid Defense MemoActive flippers only · Bid PDF required · 12-hour turnaround