Is my contractor's bid fair?
Short answer: a fair bid is not about the lowest number. It is about whether the bid actually spells out the work, the materials, and who is responsible for what. A clean, detailed bid at a higher price is usually safer than a vague one that came in cheap. Here is how to read yours like a superintendent does.
Start with scope, not price.
Before you compare any numbers, read what each contractor actually promised to do. A real bid tells you the tasks, the materials, and who handles what. Vague lines like "install fixtures as needed" or "materials TBD" are the ones that come back as change orders later. If the scope is thin, the price is meaningless, because you do not yet know what you are buying.
Compare line by line, large items first.
Put the bids next to each other and start with the big-ticket items. One contractor may write "Drywall." Another may write "Install drywall, tape, mud, texture, and paint." Those can mean the same thing or two very different jobs. The only way to know is to line them up and ask.
Watch the allowances.
An allowance is a placeholder dollar amount for something not yet picked, like tile or fixtures. A bid stuffed with low allowances can look cheap on paper and then balloon once you choose real materials. Ask what each allowance assumes, and whether it matches what you actually want.
"Misc" is the most expensive word on a bid.
If a line item does not tell you what you are paying for, it is not a price, it is a placeholder. And placeholders grow. Ask the contractor to break out anything labeled misc, general, or TBD before you sign.
Two bids wildly apart usually means a scope gap, not a deal.
When one bid is far lower, it is rarely a gift. Usually someone left scope out, assumed cheaper materials, or did not understand the job. Find the difference before you celebrate the low number.
Check license, insurance, and a written contract.
A fair price from someone unlicensed or uninsured is not a fair deal. Verify the license, confirm insurance, and get everything in a written contract before any money changes hands.
Common questions
How do I know if a contractor's bid is fair?
Compare scope first, then price. A fair bid spells out tasks, materials, and responsibilities. Vague scope and heavy allowances are bigger risks than a higher number.
Should I always pick the lowest bid?
No. The lowest bid often means scope was left out or cheaper materials were assumed. Find out why it is low before you choose it.
What is an allowance on a contractor bid?
A placeholder dollar amount for materials not yet chosen. Low allowances can make a bid look cheap and then grow once you pick real materials.