How to Compare Contractor Estimates (With an Annotated Example)

Make the quotes comparable first

Give every contractor the same written description of what you want: rooms or areas, the materials or product lines you have in mind, and anything you already know must be fixed. If one contractor suggests a change, ask the others to price it too.

• Scope: what work is included, room by room or area by area.
• Quantities: square feet, linear feet, number of windows or fixtures. Different measurements are the most common reason totals differ.
• Materials: brand, product line, grade and color where it matters.
• Allowances: placeholder amounts for items you have not picked yet (tile, fixtures, lighting).
• Exclusions: what is specifically not included.
• Schedule and payments: deposit, progress payments and what triggers each one.
• Warranty: workmanship and manufacturer coverage, in writing.

An annotated example

Here is how two bathroom quotes for the same 5×8 bathroom can look once you lay them side by side. The totals are illustrative and sit within the national range in our bathroom cost guide.

Illustrative example. Your quotes will differ.

After adjusting for the missing demolition, the lower tile allowance and the permit, Quote B is likely to end up close to Quote A, and it carries more unknowns.

Allowances, unit prices and contingencies

An allowance is a budget placeholder. If you pick a tile that costs more than the allowance, you pay the difference. Compare allowances to the prices of products you would actually choose.

A unit price (for example, per square foot of decking or per sheet of roof decking replaced) tells you how surprises will be billed. Ask for unit prices on likely hidden repairs: rotted wood, subfloor, drywall and decking.

A contingency is money you set aside for unknowns. Many homeowners keep 10%–20% of the budget in reserve for older homes or projects that open walls or floors. That reserve is your own planning number, not something a contractor needs to add.

Red flags in an estimate

• A single lump-sum price with no breakdown of what is included.
• Pressure to sign the same day to "lock in" a discount.
• A request for most or all of the money before work starts.
• No license number, business address or proof of insurance.
• Vague terms like "standard materials" or "as needed" for major items.
• A price far below the others with no clear reason.

Some states limit deposits on home improvement contracts. California, for example, generally caps the down payment at $1,000 or 10% of the contract price, whichever is less. Check your state contractor board for the rules where you live.

Put your quotes in one place

Our free quote comparison worksheet lines up three quotes on price, scope, exclusions, warranty and payment schedule, and flags what the lowest quote may be missing.