Comparing Contractor Quotes: A Step-by-Step Guide

Our free quote comparison call helps translate contractor estimates.

One key part of choosing a contractor for your renovation is how to compare remodeling estimates. At this point, you have interviewed contractors and received their proposals for your home improvement project. Estimates can vary drastically in terms of look and format. However, all estimates should include at least two things: a detailed scope of work and a set price. Discuss the pros and cons of each contract type with your chosen renovation contractor to make an informed decision.

How do you compare them when one is five pages long while the other is just one? Or when one is grouped by room, and the other is grouped by task? A note on terminology: “quote,” “estimate,” and “proposal” refer to the same thing.

Send us your quotes and you’ll have access to our quote comparison service to help make sense of the various construction estimates in front of you, including ours.

How many contractor estimates should I get?

We recommend getting at least three quotes. This allows you to understand the price of the work. You’ll have a low, a medium, and a high quote and likely some differentiation in the services offered by the contractors. Getting multiple estimates also gives you the chance to experience different personalities and communication styles. These are subjective factors important in your decision-making process. A great rapport with your contractor goes a long way in achieving a successful renovation. You can also compare the different things and options that each contractor provides in their contractor’s quote, giving you a better understanding of the services and costs involved.

Breaking down how to compare contractor quotes:

Similarities and differences in contractor estimates

Even though quotes may come in a variety of formats, major work categories (like demolition, plumbing, electrical, etc.) are usually called out specifically. To begin, find the biggest categories of work in each quote and see how those costs compare. You’ll get a sense of how your candidates are thinking about the work and the time/skill needed to complete it.

There may be spots where quotes diverge significantly. Some categories may be in some estimates but not others.

• For example, the inclusion of skim coating in a whole apartment remodel can increase the budget dramatically but not in all cases. One contractor may have included it, while another has not.
• Your site visits with individual contractors may include ideas or suggestions that didn’t come up with other candidates, making a line-by-line comparison even more challenging.
• Each contractor may vary slightly in their approach to completing the work. Avoid major discrepancies in scope by confirming the work that you would like to bid out after the visit.

Including your HOA requirements:

Check to confirm any requirements for renovating with your co-op/condo board or HOA. Factors like site/hallway protection, access to parking and service elevators, and work hours can impact the efficiency of labor and therefore the price of the job.

Post-site visit follow up:

You should feel free to follow up with your candidates to:

• clarify any particular costs.
• allow them to provide a price for an idea that may not have come up during your site visit.
• ask for their input on areas where taking another approach might help you achieve what you want at a lower cost.

How material choices factor into the bid:

Assumptions are built into quotes in different ways. Site visits give you a chance to meet with candidates and explain a broad overview of what you want to do. But if you don’t know the exact materials you plan to use, contractors will provide “allowances” or educated guesses about what you will choose to spend on the materials based on the finish level you discussed. Providing more details upfront, such as architectural plans, specifications, and a full list of materials, can help ensure more accurate estimates and fewer surprises later on. Material costs are an important factor to consider when comparing contractor quotes, as they can greatly impact the overall cost of the project.

For example, you might suggest you want very basic tiles, and out-of-the-box cabinets, nothing fancy. A contractor might price with the assumption that you will buy budget-friendly materials. Or you might suggest you want a luxurious countertop material and unique backsplash tiles to recreate the kitchen. The contractor might price assuming you’ll purchase mid-grade, high-end, or luxury materials.

It is important for you to understand the assumptions underlying the allowances. Anything more than the allowances in the quote, you’ll have to pay for out of pocket. That said, some contractors leave allowances out altogether. It would be left to you to cost analyze within your whole remodeling budget, plan for, and purchase your finished materials, as well as budget for unforeseen expenses.

Look for places where major material purchases (and permits, if applicable) are or are not itemized in the pricing. Does it vary across quotes? The goal here is not to negotiate a particular price down but to compare your options.

Don’t walk away from a great contractor because a price that looks high specifies materials that aren’t included in another quote. Get clarity on assumptions about materials before you make your decision, so you aren’t surprised when it comes time to buy items that weren’t in the quote.