How to Compare Contractor Bids (A Homeowner’s Guide)

If you’ve ever collected contractor bids—whether for HVAC, electrical work, flooring, a bathroom remodel, solar installation, or a larger construction project—you’ve probably noticed one thing:

The bids rarely match.

Even when homeowners ask for the “same” project, contractors interpret scope differently. They make different assumptions, include different details, and structure pricing in different ways. That’s why comparing bids often feels confusing, stressful, or even impossible.

This guide walks you through how to compare contractor proposals clearly, what to look for, and how Strata helps homeowners across Lake Oswego, West Linn, and the greater Portland area choose the right contractor with confidence.

1. Why Contractor Bids Don’t Match

Even for simple one-contractor projects (like HVAC or electrical), contractors may differ on:

  • Equipment types or brands

  • Labor assumptions

  • Installation approach

  • What’s included vs. “by owner”

  • Warranties

  • Timeline and scheduling

  • Permits

For multi-trade jobs (like remodels or additions), the variation is even wider because contractors must coordinate multiple scopes.

Bottom line:

Contractors bid based on their interpretation of your project—not a standardized plan.

That’s why the next section is crucial.

2. Clear Scope = Clearer Bids (The Most Important Step)

Before gathering bids—regardless of project size—you should have:

  • Clear project goals

  • A list of required tasks or outcomes

  • Any known site constraints

  • Preferred materials or performance requirements (if any)

  • Clarity about what you are buying vs. what the contractor is supplying

  • A general timeline (e.g., “we hope to start in April”)

For remodels or larger projects, scope clarity usually also includes:

  • Layout decisions

  • Basic plans or sketches

  • Design intent

  • Structural or engineering considerations

Without scope clarity, bids are built on assumptions.

Assumptions lead to mismatches. Mismatches lead to stress, surprises, and preventable costs.

Strata helps homeowners establish scope clarity before bidding begins.

3. What Homeowners Should Compare in Every Bid

Regardless of whether your project requires one contractor or many, the fundamentals of bid comparison remain the same.

A. Scope of Work (Single or Multi-Trade)

  • What tasks are included?

  • What tasks are excluded?

  • Are assumptions listed?

  • Are site conditions acknowledged?

  • Is cleanup or haul-off included?

B. Materials, Equipment & Specifications

Relevant for all projects, including HVAC, electrical, flooring, solar, and remodels.

Look for:

  • Brands, models, or product lines

  • Material quality

  • Performance or efficiency ratings

  • Installation method differences

C. Allowances (When They Apply)

Allowances typically appear in remodels, additions, or multi-trade projects.

Examples:

  • Flooring

  • Tile

  • Lighting

  • Plumbing fixtures

  • Appliances

Low allowances make bids look cheaper but increase total cost later.

D. Permits & Engineering

  • Are they included?

  • Who is responsible?

  • Are city fees included or separate?

This applies equally to electrical upgrades, solar installations, remodels, and structural projects.

E. Labor Breakdown & Timeline

Contractors vary on:

  • Crew size

  • Number of days on site

  • Subcontractor scheduling

  • Seasonal workload

A shorter timeline may not always be the better choice—it depends on crew availability and quality.

F. Payment Schedule

  • Deposit amount

  • Progress payments

  • Final payment

  • Retainage (if any)

G. Warranties

  • Labor warranty

  • Equipment or material warranty

  • Conditions for coverage

4. Common Red Flags Homeowners Should Watch For

• Low allowances (in remodels)

A classic tactic that makes bids seem lower.

• Missing details

A vague two-page bid rarely protects homeowners.

• Exclusions buried in the fine print

These often become homeowner surprises later.

• “You pick it up” language

Sometimes OK, sometimes a problem—context matters.

• Large price swings with no explanation

Signals differing scope, material quality, or assumptions.

5. Understanding Why Prices Differ So Much

Contractor pricing varies because of differences in:

  • Scope

  • Labor availability

  • Materials and equipment

  • Subcontractor costs

  • Installation method

  • Warranty quality

  • Experience level

  • Risk factors (working in tight spaces, older homes, structural unknowns)

A higher bid may actually include:

  • More scope

  • Better materials

  • Longer warranty

  • More detailed construction approach

  • Better project management

A lower bid may:

  • Exclude tasks

  • Use entry-level materials

  • Assume less time

  • Push costs to change orders later

You need to know why one bid is lower or higher.

6. Why Homeowners Often Don’t Get Enough Bids

Even though most advice says “Get three bids,” many homeowners struggle to get even one or two.

Why?

• Finding trustworthy contractors is difficult

Google searches lead to overwhelm. Lead-gen sites sell your info. Asking neighbors helps, but only gives you a tiny sample.

• Contractors are busy

Especially in Portland’s market. Some won’t call back.

• Matching schedules takes time

Multiple site visits = multiple afternoons off work.

• Projects vary in appeal

Small jobs may not interest some contractors. Large jobs may overwhelm others.

• Homeowners feel awkward saying “no”

So they often stop after the first contractor they like.

• Referrals aren’t always the right fit

A contractor perfect for your neighbor’s kitchen may not be the right choice for your bathroom refresh or garage project.

This is exactly where Strata supports homeowners—we coordinate everything.

7. How Strata Helps Homeowners Compare Bids Confidently

Regardless of project type—HVAC, electrical, flooring, remodels, additions, solar, or garages—Strata helps you compare bids clearly by:

  • Preparing a consistent scope for all contractors

  • Gathering multiple competitive bids

  • Ensuring bids reflect the same assumptions

  • Breaking down what’s included vs. missing

  • Identifying cost-saving opportunities

  • Explaining differences in installation approaches

  • Clarifying timelines and crew assumptions

  • Helping you understand contractor fit

  • Ensuring decisions align with your goals

This gives homeowners clarity—not confusion.

8. When to Bring Strata Into the Process

Strata can help at any point:

  • Before gathering bids

  • After receiving bids

  • When bids don’t match

  • When pricing varies dramatically

  • When scope feels unclear

  • When you want a second opinion

  • When you’re choosing between contractors

But the best time is before calling contractors. It leads to clearer bids and fewer surprises.

Conclusion

Comparing contractor bids is one of the most important steps in any home project—big or small. With clearer scope, consistent assumptions, transparent comparisons, and an advocate in your corner, your project starts on solid ground.

If you’re planning a home project in Lake Oswego, West Linn, or the greater Portland area and want clarity around contractor bids, Strata can help.

Book a free consultation