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Fullerton, CA 92835
Bids that look far apart are often pricing different projects. Here's how to tell what each number really includes before you sign anything.
A low bid usually means one of three things: missing scope, low allowances, or costs pushed onto you as exclusions and "by others." None of those make the project cheaper — they move the cost to later, when it arrives as change orders and you have less leverage. Use these ten checks to compare bids on equal terms.
Two bids are only comparable if they price the same work. If one contractor priced a full set of drawings and another priced a two-line description, the totals tell you nothing.
What to checkGive every bidder the same drawings and written scope. Then compare line by line — demolition, framing, plumbing, electrical, mechanical, finishes — not just the bottom line.
What a bid leaves out is often where the price difference really is. Common exclusions: permit and plan-check fees, utility connection fees, fire sprinklers and alarms, low-voltage and data, signage, equipment hookups, and anything hidden behind walls.
What to checkAsk each bidder for a written list of exclusions, and have every excluded item priced or assigned to someone before you sign.
An allowance is a placeholder amount for something not yet chosen, like flooring or light fixtures. A low allowance makes a bid look cheaper today and comes back as a change order later.
What to checkCompare allowances across bids and against what you actually want to buy. Ask what happens if the real cost is higher.
"By others" means the bidder assumes someone else — you, the landlord, or another trade — will handle that item. It is a quiet way for scope to fall between companies.
What to checkFor every "by others" line, write down who that other party is and whether their price is in your budget.
Supervision, site protection, temporary utilities, dumpsters, cleanup, and insurance are real costs. A bid that is missing them hasn't eliminated them — it has postponed them.
What to checkLook for a general-conditions or overhead line. If there isn't one, ask where those costs are carried.
Plan-check fees, permit fees, school and impact fees, and utility charges can be significant, and they are frequently left to the owner without saying so.
What to checkAsk each bidder which fees are included, which are estimated, and which you will pay directly to the city or utility.
A cheaper bid with a longer schedule can cost more once you count rent, loan interest, or a delayed opening. A schedule that ignores permit time is not a real schedule.
What to checkAsk for a duration in writing, what it assumes about permits and inspections, and what happens if the contractor causes a delay.
Almost every project has changes. The bid should say how they will be priced — otherwise the first change order sets the rules.
What to checkAsk for the markup on changes and how change orders are approved before work proceeds.
Payments should follow completed work, not run ahead of it. In California, home improvement contracts limit the down payment to $1,000 or 10% of the contract price, whichever is less.
What to checkTie each payment to a milestone you can see, and keep a retention amount until the job is complete and signed off.
A license protects you; an expired or mismatched one is a serious red flag. Insurance covers injuries and damage on your property.
What to checkLook up the contractor on the California Contractors State License Board site (cslb.ca.gov), and ask for current certificates of general liability and workers' compensation insurance.
Many of these problems come from the gap between the people who draw a project and the people who price it: drawings that leave questions open, and bids that fill those gaps with exclusions and allowances. In design-build, one team designs and prices the project together, so cost questions are answered while the drawings are still being made — not after bids come back.
Whoever you hire, the checks above still apply. Ask the same questions of us.
This is general guidance, not legal or financial advice. Contract requirements differ for commercial and residential work and change over time — confirm specifics with your attorney and the Contractors State License Board.
Tell us about your project and we'll come back with the likely path, a realistic timeline, and what we'd need to price it properly.