Why is one contractor's bid so much lower than the others?

What do low bids usually leave out?

The common gaps I see when a homeowner shows me a surprisingly low bid:

• Permits and fees. Left out, or quietly made your problem.
• Demolition and disposal. Tearing out and hauling away is real labor and real dump fees.
• Allowances that are too small. An allowance is a placeholder budget for things not yet picked, like tile or fixtures. A lowball allowance makes the bid look good and guarantees an upcharge later.
• Site protection and cleanup. Floor protection, dust barriers, daily cleanup. Skip these and your house pays for it.
• The contingency conversation. Nobody can bid what is behind a wall. An honest bid talks about how unknowns get handled. A low bid pretends there are none.

What is the change-order game?

Some contractors bid low on purpose. They win the job with a small number, then charge heavily for every change and every "surprise." A change order is a written amendment that adds cost or time to the contract. Change orders are normal when they cover real unknowns. They are a business model when the original bid was designed to be incomplete.

The tell: a bid with a vague scope and a contract with steep change-order terms. Vague going in, expensive coming out.

How do I compare bids the right way?

Make the bids comparable before you compare them:

1. Give every bidder the same written scope. Same finishes, same allowances, same expectations.
2. Ask each bid to break out labor, materials, permits, and allowances as separate lines.
3. Line them up item by item. Note what each bid includes that the others skip.
4. Ask the low bidder what happens when something unexpected shows up. Get the answer in writing.
5. Weigh the schedule too. A bid that costs less but runs months longer has a cost of its own.

If a bid will not break out its numbers, that is your answer about how the project will go.

Is a low bid ever legitimate?

Sometimes. A contractor with a gap in the schedule may price sharp to keep the crew moving. A small operation with low overhead can honestly beat a big firm's number. The difference shows in the paperwork: the legitimate low bid still has a detailed scope, a real license, insurance, and references.

So do not throw out the low bid automatically. Make it explain itself.

Where do I stand on this?

I am rarely the cheapest bid, and I put the reason in writing: my bids include the whole job. Permits, disposal, protection, realistic allowances, and a plain-language answer for how surprises get handled. When I tell you a number, it is the number the project actually costs, not the number that wins a beauty contest.

If you have bids in hand for a project in St. George, Salt Lake, or the Wasatch Back and they are far apart, send me the scope. I will tell you what the spread is really about.