How to read a construction bid, and how to spot the gaps
The number at the bottom is the easy part. Here is how to read what is behind it, and how to catch the gaps that turn into change orders.
5 minute read
Compare scope, not just price
The lowest bid is often the one that left something out. Before you compare numbers, compare what each bid actually includes. If one price covers the sitework, the utilities, and the retention, and another does not, they are not the same bid, even if the bottom line looks close.
Look for the exclusions
Read the exclusions and allowances carefully. Exclusions are the things a contractor is telling you are not in the price. Allowances are placeholder numbers for scope that is not fully defined yet. Both are where a low bid quietly becomes a bigger number after you have committed.
Ask how the number was built
A real budget is built from the drawings and the site. A number pulled from a per square foot average is a guess. Ask how the bid was put together. The answer tells you whether the price will hold or move once the work starts.
The bid is a preview of the relationship
A clear, complete bid from a contractor who walked the site and read the drawings tells you something about how the project will run. A vague number with a long list of exclusions tells you something too. Read the bid as a preview, not just a price.
Common questions
Why is the lowest construction bid not always the best?
The lowest bid is often the one that excluded scope, like sitework, utilities, or retention. Those gaps surface as change orders after you have committed. Compare what each bid includes, not just the bottom line.
What should I look for in a construction bid?
Compare the scope each bid covers, read the exclusions and allowances closely, and ask how the number was built. A budget built from the drawings and the site holds up better than one pulled from a per square foot average.
Ready to build with a team that answers the phone?
Send us the project and we will come back to you on scope, budget, and schedule.