You follow the advice. You get three bids. One comes in at $18,000, one at $26,000, one at $34,000 — and now you have a different problem. What do you do with a spread that wide?

The instinct to go with the middle number isn't terrible, but it's not analysis either. Here's how to actually figure out what's going on.

The most common reasons bids differ significantly

1

They're not bidding the same scope

This is the most common reason for big gaps and the most important to check first. If one contractor included permit fees, disposal, and a contingency — and another bid lump-sum with no detail — they may be pricing completely different things. Get each contractor to walk you through what's included line by line before drawing any conclusions about price.

2

Material grade differences

A tile job using $3/square-foot tile costs very differently than the same job with $18 tile. If one contractor bid with "standard" materials and another assumed a mid-grade selection, the gap between them may be almost entirely material cost — not a reflection of either contractor's value or quality.

3

Different overhead structures

A solo operator who works out of a truck has lower overhead than a mid-size company with an office, project manager, and warranty department. Both can do excellent work. The overhead difference shows up in price. This isn't necessarily a quality signal — it's a business structure signal. The question is whether the higher overhead buys you something you value, like better scheduling, a dedicated PM, or a longer warranty.

4

A contractor who needs the work

A contractor with empty calendar weeks may bid lower than their normal rate to land a job. This isn't always a bad thing for you — but it's worth asking why they're available. "We just finished a big job and have a two-week window" is a very different answer than "we've been slow for a while."

5

A low bid that plans to recover through change orders

This is the one to watch for. A contractor who wins on price and then presents a stream of change orders for "unexpected" issues often ends up costing more than the highest original bid. Look for contractors who set realistic allowances and build a contingency into their bid — that's a sign they're pricing the full job, not just the optimistic scenario.

The question is never "which bid is cheapest?" It's "which bid is most accurate?" A bid that's honest about what the job costs is worth more than one that's optimistic about everything until it isn't.

Questions to ask every contractor before deciding

When the lowest bid is fine

Sometimes the low bid is low because the contractor has lower overhead, works efficiently, or is just hungry for the business in a way that benefits you. This is especially common with sole operators on smaller, well-defined jobs — a fence, a bathroom tile, a deck. If the scope is clear, the materials are specified, and the contractor has good references, the low number may simply be a good number.

We already know which contractors price honestly

Part of how we vet contractors is watching how they bid jobs for our homeowners. We know which ones are accurate and which ones optimize for the win. Tell us about your project and we'll match you accordingly.

Start My Free Consultation

A note from David: I've seen the same job bid at $15,000 and $42,000 by two contractors who were both legitimate and both ultimately priced it accurately for what they planned to deliver. The gap was entirely in scope assumptions and material grade. When bids are far apart, the answer is almost always more conversation — not just picking a number.