How to read a construction bid (and compare three of them)
Allowances, exclusions and contingency: what to look for when contractor bids land on your desk.
The lowest number on the page is rarely the lowest final cost. Before comparing totals, line the bids up by trade and read what each one leaves out.
Check the allowances
An allowance is a placeholder for something not yet designed. Low allowances make a bid look cheap and turn into change orders later.
Read the exclusions
Permits, utility connections, winter heating and site security are common exclusions. Ask every bidder to price the same list.
Ask about contingency
A fixed-price bid carries its own risk. A guaranteed maximum price shows contingency openly and returns what is not used.