What a Construction Bid Should Actually Include
I have reviewed hundreds of construction bids over 40 years. The difference between a good bid and a bad one is not the price — it is what is missing.
A low bid with vague line items will cost you more than a higher bid that spells everything out. Here is what to look for before you sign anything.
Detailed Line Items, Not Lump Sums
A bid that says "Framing — $45,000" tells you nothing. What lumber species? What about trusses vs. stick-built? Hardware? A good bid breaks every phase into specific materials and labor so you can compare apples to apples.
Allowance Breakdowns
Allowances are where budgets blow up. If your bid says "$5,000 allowance for tile," ask what that actually buys per square foot. Many homeowners discover at the showroom that their allowance covers the cheapest option on the floor.
Payment Schedule Tied to Milestones
Never agree to a payment schedule based on dates alone. Payments should be tied to completed work: foundation poured, framing inspected, roof dried in. If the work is not done, the payment does not go out.
Change Order Process
Every project has changes. Your bid should spell out exactly how change orders work: written approval required, markup percentage disclosed (typically 15–20%), and timeline impact noted. If it is not in writing, you have no leverage later.
Timeline with Start and End Dates
A professional bid includes a projected start date, estimated completion date, and what happens if the builder misses it. Weather delays are normal. Six months of unexplained silence is not.
Insurance Certificates and Warranty
Ask for a current certificate of insurance — general liability and workers' comp. If a worker gets hurt on your property and the builder is uninsured, you could be liable. The bid should also state warranty terms: what is covered, for how long, and how to make a claim.
The Bottom Line
A complete bid protects both you and the builder. If a contractor cannot or will not provide this level of detail, that tells you something about how the project will be managed.
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