Contractor Bid Comparison Worksheet

Contractor Bids at a Glance

The Federal Trade Commission recommends getting multiple written estimates and says an estimate should describe the work, materials, completion date, and price. It also warns homeowners not to choose the lowest bidder automatically. Review the current FTC contractor guidance before signing.

Make Every Bid Cover the Same Job

Before contractors set prices, give each one the same written description, photos, measurements, reports, notices, and required result.

Do not tell one roofer to “fix the leak” and another to “replace the roof.” Do not ask one electrician to price a panel replacement while another is pricing only a damaged breaker. The bids will not answer the same question.

• Name the damaged area: room, wall, roof slope, circuit, pipe run, fixture, doorway, ramp, or foundation section.
• State the required result: stop active water entry, restore safe power, correct a code item, create an accessible route, or replace failed equipment.
• List known conditions: home age, prior repairs, suspected lead paint, asbestos concern, mold, rot, structural movement, or disaster damage.
• Ask for options separately: basic repair, longer-life repair, and optional upgrade should not be mixed into one total.
• Require written exclusions: the contractor should state what is not included.

Three Short Call Scripts

Contractor Bid Comparison Worksheet

Write each contractor name at the top. Use the notes column for missing information, follow-up dates, and documents you still need. Resolve every important blank before signing.

Line-Item Scope and Price Worksheet

Use this table when totals are far apart. Mark each line as included, excluded, or an allowance. Remove rows that do not fit and add the work your home needs.

If a contractor refuses to provide useful detail, you cannot tell whether the price is complete. A one-line quote may be acceptable for a very small service call, but it is weak protection for a large repair.

Score the Bid, Then Verify the Contractor

Use this 100-point score as a guide. Adjust it for your project, but do not let price control the decision.

• Complete scope and materials: 30 points. The bid clearly states what will be done, what will be used, and what is excluded.
• Verified qualifications: 20 points. License, insurance, trade credentials, lead-safe certification when required, and similar experience check out.
• Price and payment terms: 20 points. The price is reasonable, allowances are realistic, and payments follow completed work.
• Schedule and communication: 10 points. Dates, delays, access, daily cleanup, and contact method are clear.
• Warranty and closeout: 10 points. Written warranty, final inspection, manuals, receipts, and lien releases are addressed.
• References and complaint history: 10 points. Recent similar customers give useful answers, and unresolved problems are explained.

Check the Business Behind the Bid

Licensing is controlled by states, counties, cities, or trade boards. Some states license general contractors. Others regulate only certain trades or projects. Search the official licensing agency yourself; do not rely on a screenshot supplied by the contractor. Our guide to licenses and permits explains the checks in more detail.

• Match the legal business name on the bid to the license record.
• Confirm the license is active and covers the type of work.
• Check whether the qualifying person is connected to the business.
• Ask whether complaints, discipline, or bond claims appear in the official record.
• Ask the insurance agent or carrier to verify general liability coverage and workers’ compensation when required.
• Call two or three recent customers with similar repairs. Ask what changed, whether permits were closed, and whether the final price matched the contract.

Use the official state consumer office directory when you do not know which agency handles contractor complaints or licensing in your state.

Permits, Lead Safety, and Lien Risk

The bid should say who obtains permits, who pays the fees, and who schedules inspections. Call the building department yourself before signing. A permit pulled in the homeowner’s name can shift duties or risk to the homeowner in some places. Local rules differ, so ask what is normal and lawful for your project.

If the home was built before 1978 and the work may disturb paint, federal or authorized state Renovation, Repair and Painting rules may apply. The Environmental Protection Agency advises homeowners to use trained, lead-safe certified firms for covered work. Read the EPA consumer guidance and verify a company through the lead-safe firm database. Some states and tribes run their own authorized programs.

Mechanics lien rules also differ by state. In some states, an unpaid subcontractor, worker, or material supplier may claim a lien even when the homeowner paid the general contractor. Before a large project, ask the contractor to identify subcontractors and suppliers and explain the conditional and final lien-waiver process used in your state.

Payment Terms, Change Orders, and Warranties

A bid becomes safer when the payment schedule follows visible progress. Avoid paying the full amount before work begins. State law may limit deposits or require special notices, escrow, bonds, or cancellation language. Confirm your local rules instead of assuming one national limit applies.

• Deposit: enough to start legitimate ordering or scheduling, but not so much that the contractor is already fully paid.
• Progress payments: tied to named stages that you, an inspector, lender, insurer, or program can verify.
• Final payment: due after the agreed work is complete, required inspections are passed, the punch list is resolved, and closeout papers are delivered.
• Change orders: written and signed before extra work begins, with the price and added time stated.
• Allowances: adjusted with receipts or a clear formula when the selected item costs more or less.

The contract should explain what happens when hidden damage appears. It should not give the contractor unlimited authority to perform extra work and bill later. Ask for a stop-and-notify rule: the contractor documents the condition, gives a written price and schedule change, and waits for approval unless immediate action is needed to prevent danger or further damage.

Read the labor warranty and manufacturer warranty separately. Ask who registers products, who pays labor if a product fails, whether the warranty transfers to a future owner, and what maintenance is required. Save model and serial numbers, receipts, manuals, inspection approvals, and photos.

The FTC’s Cooling-Off Rule guide explains a possible three-business-day cancellation right for certain sales made at a home or temporary location. Not every repair sale is covered, and emergency work and other transactions may be excluded. State law may give different or stronger rights.

Be especially careful when a contractor arranges financing. Compare the cash price and financed price, annual percentage rate, total payments, fees, security interest, lien, and when the contractor receives money. A home equity loan uses the home as collateral and can put the home at risk if payments are not made; review the Consumer Financial Protection Bureau’s home equity loan risks. Our repair financing guide covers safer questions to ask.

When a Program, Loan, or Insurance Pays

Do not use a normal self-pay worksheet without checking the payer’s rules. The person approving the bid may be a local housing office, nonprofit, lender, insurer, adjuster, grant administrator, tribal housing entity, utility, or government program. Each may control the scope, contractor, price, inspections, and payment.

• Grant: assistance that normally does not require repayment when all rules are met. It may be paid directly to the contractor rather than to the homeowner.
• Forgivable loan: a loan that may be forgiven over time if occupancy, ownership, and other conditions are met. It may create a lien until forgiveness is complete.
• Deferred loan: a loan with payment delayed until sale, transfer, refinance, move-out, maturity, or another event. No monthly payment does not mean no repayment.
• Regular repair loan: borrowed money that must be repaid with the stated interest, fees, and security terms.
• Insurance benefit: payment based on policy coverage, deductible, limits, depreciation, and proof of covered damage. It is not a grant.
• Rebate or tax credit: an incentive that may require eligible equipment, approved installation, tax liability, or proof of payment. It may not provide money before the contractor is due.
• Volunteer repair service: labor or repair work supplied by a nonprofit or volunteer group. It is a service, not cash the homeowner can spend elsewhere.

Ask the program which bid form to use and whether it needs two or three bids. Some programs choose from an approved contractor list. Some require the lowest acceptable bid. Others consider qualifications, schedule, minority- or women-owned business rules, procurement rules, or a cost estimate prepared by the program. A homeowner should not promise the job to a contractor before the program approves the selection.

Local programs funded through federal housing sources may be grants, loans, deferred loans, forgivable loans, or direct repair services depending on the city or county. Verify the real administering office and terms with our guide to checking repair programs. Before applying, use the repair assistance steps to organize ownership, income, repair, insurance, and bid documents.

An FHA 203(k) rehabilitation mortgage is a loan, not a grant. HUD’s current FHA 203(k) process shows that work write-ups and bids go to the lender, permits are obtained before construction, and draw payments follow inspections. Follow the lender’s written instructions rather than a contractor’s guess.

For an insurance claim, ask the insurer how it handles estimates, supplements, depreciation, direct payment, mortgage-company checks, and proof of completion. Keep disaster damage separate from pre-existing problems and optional upgrades. The FTC’s disaster repair advice warns against signing over insurance checks, paying everything up front, or using hard-to-recover payment methods.

Before signing a deferred or forgivable agreement, read our explanation of repair liens and recapture.

Red Flags and Bids That Do Not Match

Large price differences are not proof of fraud. Ask for a written explanation. One bid may include permits, disposal, code work, restoration, better equipment, or realistic allowances that another omitted.

When bids remain too different, consider paying an independent licensed inspector, engineer, architect, energy auditor, or trade professional for a neutral scope. Choose the professional based on the repair. A structural engineer should not be replaced by a general home inspector when the question is structural design.

If one contractor already took money, abandoned the job, or refuses to correct work, use our guide on contractor payment problems. Keep the contract, bids, change orders, proof of payment, photos, inspection records, and all messages. USAGov lists current company complaint steps. Report suspected scams through FTC ReportFraud.

A Safe Decision Plan