How to Compare Construction Bids

Price and quality should be two primary considerations used when comparing construction bids.

After deciding to pursue a home improvement or construction project, putting the work out to bid is usually a homeowner's best shot at securing a good quality contractor at a fair price. Contrary to your first impression, selecting the lowest bidder on any given project is not necessarily your best option. For instance, you could hire an unskilled contractor for a cheap price and end up with a shoddy project overall. Seeing the bigger picture is essential to successfully comparing construction bids.

Instructions

1. Compare each construction bid by scanning for missing information. If a bid does not provide you the tools you need to make a sound decision---pricing, labor, materials and associated costs---request that the contractor provide you with a corrected bid.

2. Contrast the construction bids by investigating their similarities and differences. Check the labor and material costs on each bid for fluctuations in pricing. This will allow you to save money by using the same materials at a reduced price.

3. Call the contractors if you have any questions at all regarding the bids. If a contractor seems particularly evasive or put off by your questions, you may want to remember this behavior when deciding whether to hire such a person.

4. Ensure each contractor is properly insured and ask that they be able to show you proof of such coverage. Contractors should have personal liability, worker's compensation and property damage coverage.

References

• Chicago Tribune: Comparing apples to apples in project bids