Why Are My Contractor Bids So Different? Comparing 3 Quotes

You did the right thing and got three bids. Now you're looking at three very different numbers and wondering if somebody's trying to rip you off.

Maybe. But usually the answer is less dramatic: the three bids aren't pricing the same job. I've been in remodeling since 1999, first building custom cabinets and kitchens, then for the past 11 years as a project manager, head carpenter and estimator. As an estimator, I've priced plenty of jobs knowing the homeowner was collecting other quotes too. Here's why that happens and how to compare quotes fairly.

Why bids for the "same" project differ

1. They're not the same scope

This is the biggest reason by far. One contractor includes demo, disposal, permits (if required), paint and trim. Another leaves half of that out or lists it in the exclusions. One prices new plumbing valves, another assumes the old ones stay. Until the scopes match, the prices can't be compared.

2. Different allowances

If Bid A has a modest tile allowance and Bid B has a much bigger one, Bid A will look cheaper, but you may end up paying the difference anyway once you pick your tile. Allowances are one of the most common reasons bids don't line up.

3. Different materials and specs

"New cabinets" can mean stock boxes or custom shop work. HomeAdvisor lists all-in cabinet costs from about $100–$300 per linear foot for stock to $500–$1,200+ for custom (HomeAdvisor). The same goes for tile, flooring, fixtures and countertops. If the specs aren't written down, you can't tell which grade each bid assumed.

4. Different ways of handling risk

Some contractors build a cushion into the price for unknowns like rot, old wiring or out-of-level floors. Others price only what they can see and handle surprises as change orders. Neither approach is wrong, but they produce different numbers. A higher bid with fewer "unknowns" can end up costing about the same as a lower bid plus change orders.

5. Overhead, insurance and how the business runs

A contractor with liability insurance, workers' comp, licensed trades, a project manager and a warranty carries real costs. A one-person operation with lower overhead may price lower. Again, that's not automatically good or bad. Just know what you're comparing.

6. Schedule and availability

A busy contractor may price higher or quote a later start date. A contractor who needs work may sharpen their pencil. Timing can move bids up or down.

7. Region

Where you live matters. HomeAdvisor's regional kitchen ranges run from about $12,700–$39,600 in the Rocky Mountains to about $25,600–$61,100 in the Northwest (HomeAdvisor). Even within a region, prices vary by city and neighborhood. National averages like the 2025 Cost vs. Value Report (JLC) are useful context, but they won't tell you what your local contractors should charge.

How to compare three bids, step by step

Step 1: Build a side-by-side sheet

Make a simple table with one row per part of the job and one column per bid:

Fill in what each bid actually says, and leave a cell blank if a bid doesn't mention something.

Step 2: Turn blanks into questions

Every blank cell is a question for that contractor: "Is demo included?" "If a permit is required, who pulls it?" "What does the tile allowance cover?" Send your questions in writing and ask for written answers.

Step 3: Normalize the allowances

If allowances differ, pick one realistic number per item, the same for every bid, and adjust each total up or down to match. Now you're comparing apples to apples.

Step 4: Add the exclusions back in

For anything one bid excludes and another includes, ask the excluding contractor what it would cost to add. Or at least note that you'd be paying for it separately.

Step 5: Compare totals again

Once scope, allowances and exclusions line up, the price differences usually shrink. The gap that's left is the real difference in price, and it's worth asking about.

Step 6: Weigh the non-price factors

• Who answered your questions clearly and in writing?
• Who has a clear change-order process?
• Who offers a written warranty?
• Who can show a license (where your state requires one) and a certificate of insurance?
• Whose payment schedule is tied to progress?

A simple follow-up message to send each contractor

Once you've built your side-by-side sheet, a short written follow-up keeps everyone honest and gives you answers you can compare. Something like:

Thanks for the bid. Before I decide, could you confirm a few things in writing? 1. Is [demo / disposal / permits (if required) / paint] included? If not, what would it add? 2. What does the [tile / fixture / hardware] allowance cover, and does it include install? 3. How do you price and approve change orders? 4. What does the deposit pay for, and what's the rest of the payment schedule? 5. Can you send a copy of your certificate of insurance (and license, if required here)?

Send the same questions to every contractor. How quickly and clearly each one answers is useful information on its own. It's a preview of how they'll communicate once the job starts.

Keep the answers with the bids. If you hire one of them, those written answers help you both stay on the same page when questions come up mid-project.

Red flags when comparing bids

• One bid is far lower than the others and you can't find the missing scope. Ask how they got there.
• One-line bids: "Kitchen remodel — $X" with no breakdown
• Big deposits with no explanation of what they cover
• No written change-order terms
• Pressure to sign today for a special price
• Reluctance to show insurance or license info
• Cash-only or no-permit suggestions for work your area requires a permit for

Should you just pick the middle bid?

It's a common rule of thumb, but I wouldn't rely on it. The middle bid can still be missing scope, and the high bid can be the only complete one. Pick the bid that is complete, clear and from someone you trust to communicate, at a price that makes sense once everything is lined up.

Questions to ask each contractor

1. What exactly is included, and what's excluded?
2. What materials and specs did you price? Can you list them?
3. How did you set each allowance?
4. How do you handle hidden conditions once walls or floors are open?
5. How are change orders priced and approved?
6. What's the payment schedule, and what does the deposit pay for?
7. Are permits required for this job? If so, who pulls them, and are the fees included?
8. Who will be on site day to day? Any subcontractors?
9. What's the start date and expected duration?
10. What's your warranty, in writing?

The bottom line

Different bids usually mean different scopes, allowances and assumptions, not necessarily that someone's padding the price. Line them up, turn the gaps into questions, and the right choice usually gets a lot clearer.

Have three bids that don't line up?

I offer remote bid reviews: a 45-minute Cal Video call with a written summary, or a written-only review. I'll help you compare your bids side by side and figure out what's really different. It's advice only, and you make the decisions.

See the bid review options →

Not available for projects in Lucas, Wood or Fulton County, Ohio.

— Jeremy Skadeland, Field Soft Picks

Figures are from the linked sources as of when they were checked. General information only, not professional, legal or financial advice.