How do I know if a construction bid is fair?
A bid is not a price. It's a set of assumptions with a number attached. Fairness is judged on the assumptions.
Compare bids only after normalizing scope: list every allowance, exclusion, alternate, and unit price side by side, then check general conditions, overhead and profit, escalation, and contingency separately. A low bid with wide exclusions is usually the most expensive one.
Normalize before you compare
- Build a scope matrix — every line item, every bidder, marked included / excluded / allowance
- Convert allowances to realistic values before comparing totals
- Check quantities against the drawings on the biggest three trades
- Separate general conditions and general requirements from the trade cost
- Identify escalation assumptions and how long the price is held
- Confirm the contingency: whose it is, who spends it, and what happens if it isn't used
Red flags
- A bid materially below the others with no explanation of why
- "By owner" or "excluded" language covering scope you assumed was included
- No schedule attached, or a schedule with no durations by trade
- Allowances used as a substitute for pricing known scope
- Unit prices missing for likely site work variability
What a fair bid looks like
Complete against a defined scope of record, priced with named subcontractors on the major trades, with an attached schedule, a stated escalation position, and exclusions listed rather than implied. Fairness is verifiable — it isn't a feeling about the contractor.
Common questions
- How many bids should I get?
- Three qualified bids against an identical scope is more useful than five bids against five interpretations. Prequalify first, then bid.
Start with a conversation.
Tell us where the project stands. We'll respond within one business day — with next steps, or a candid reason it isn't the right fit.
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