Compare Bids

You have now invited three contractors to bid on your job so you should have a good idea of the actual cost.

The contractors will respond to your plans with three different dollar amounts:
· Estimate - a ballpark figure that tends to be on the low side to win the bid. It can, however, be quite accurate with an experienced contractor.
· Bid - a cost based on actual dimensions, material, appliances and calculated labor. This is more accurate since your material and appliance selections will have been made and prices are now known.
· Contracted Price - the cost the contractor will actually charge and will be put in writing in a legal, binding contract.

You can use information from all bids to negotiate the best deal with the contractor of your choice. This is usually a good time to hash out the details before you put it in writing in the contract.