Guide · Quotes
How to compare contractor quotes line by line
The short answer
Compare written quotes only after every bidder is pricing the same scope. Match materials, quantities, labor, permits, allowances, exclusions, dates, payment milestones and warranty terms. Investigate a low outlier instead of assuming it is the best value. State and local contract rules still apply.
Editorial status: source-checked on 2026-08-22; not reviewed by a lawyer, licensing authority, engineer or trade professional. United States; contract, deposit, licence and cancellation rules vary by state and locality.
Make the bids comparable
Give each contractor the same written scope. The FTC recommends multiple written estimates and says an estimate should describe the work, materials, completion date and price. A lump sum cannot show whether bidders included the same work.
Put one bidder in each column of a comparison table. Mark missing information as “not stated,” not as included.
- Exact work and exclusions
- Material brand, model, grade and quantity
- Permit and inspection responsibility
- Start and completion expectations
- Allowances and unit prices
- Payment milestones and written warranties
Question the outlier before signing
The FTC cautions against automatically choosing the lowest bidder. Ask whether disposal, preparation, code upgrades, permit fees and finish work are included, and get the answer as a written revision.
Read the final contract against the selected quote and attach the scope. Do not rely on a verbal promise. Verify licence and insurance separately with the issuing authority and insurer.
Sources
Primary government and consumer-protection sources checked for this guide:
- How To Avoid a Home Improvement Scam, Federal Trade Commission. Accessed .
- What Should I Look for in a Contract and Binding Agreements?, California Contractors State License Board. Accessed .