Hiring Guide

How to Compare Contractor Estimates

Understanding what should be in an estimate, how to compare bids fairly, and what separates good value from cheap pricing.

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What a Complete Estimate Should Include

Line Items to Expect

  • Detailed scope of work with specific tasks
  • Labor costs broken down by task or hour
  • Material costs with brand and grade specified
  • Project start and completion dates
  • Payment schedule with clear milestones
  • Warranty or guarantee information

Red Flags in Estimates

  • Vague scope with no specific tasks
  • Estimates significantly below market rate
  • No mention of permits or inspections
  • No payment schedule or full amount upfront
  • Verbal-only estimates with no written document

How to Compare Estimates Fairly

1

Use the Same Scope for Every Estimate

Give each contractor the same project description. Changing the scope between bids makes comparison meaningless. Write out exactly what you need and share it with every contractor.

2

Compare Value, Not Just Price

The lowest estimate is not always the best. Compare materials specified, labor scope, warranties, and contractor experience. A slightly higher estimate with better materials and a solid warranty often costs less long-term.

3

Ask What Is Excluded

Contractors sometimes exclude necessary work to show a lower number. Common exclusions: permit fees, site prep, debris removal, landscaping repair, and post-project cleanup.

4

Evaluate the Contractor, Not Just the Number

How responsive were they during the estimate process? Did they take time to explain options? A contractor professional during the estimate phase is more likely to be professional during the project.

Disclaimer: This guide provides general educational information about comparing contractor estimates. CRA does not guarantee pricing accuracy or project outcomes. Always verify contractor credentials and review contracts independently.

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