Two proposals for “the same project” can be wildly different once you look underneath. Here’s how to compare them honestly.
When you’re choosing a builder, you’ll likely collect a few proposals — and the temptation is to line up the bottom-line numbers and pick the lowest. That’s how people get burned. A lower number often just means less was included, and the difference shows up later as change orders and overages. Here’s how to compare bids apples to apples.
Make sure everyone’s pricing the same thing
The only fair comparison is when every builder is pricing the same plans and the same specifications. If one bid assumes builder-grade everything and another assumes the finishes you actually want, the numbers aren’t comparable — they’re describing two different houses.
Check the allowances
Allowances are the budgets set aside for things you haven’t picked yet — flooring, cabinets, fixtures, lighting. A proposal can look cheaper simply because its allowances are set unrealistically low. Compare them line by line; if one builder budgets far less for the same category, that gap lands on your final bill, not theirs.
Read the inclusions — and the exclusions
The most important part of any proposal is often what’s not in it. Is site work included? Permits? The septic? Final grading? Appliances? A clear scope spells out both what’s covered and what isn’t. Vague proposals leave room for surprises, and surprises always cost you.
Look past the price at how they work
Two builders at the same price aren’t equal either. Do they use specialized subcontractors for each trade, or one crew doing everything? Is there a defined schedule? Do they hold their contract price? Will they give you references and a written warranty? These aren’t extras — they’re the difference between a smooth project and a painful one.
Cheapest is rarely the true cost
The lowest bid is frequently the one that either missed scope or intends to make it up in changes later. The right question isn’t “who’s cheapest today?” but “whose number will actually hold?” We build our proposals to be complete and firm on purpose — so the price you sign is the price you pay.
Comparing proposals and want a second set of eyes? Start your project with us and we’ll show you what a complete, apples-to-apples proposal looks like. Built right. Run like a business.