Break the bid into labor and materials
On most residential work, materials are 30 to 50 percent of the job and labor is the rest. If a bid is 80 percent labor on a materials-heavy job, or the materials line is a single unexplained number, ask for the breakdown. A contractor who will not itemize is either hiding margin or has not measured the job.
| Job | Typical range | Materials share |
|---|---|---|
| Interior painting, per sq ft | $2 to $6 | 15 to 25% |
| Kitchen remodel, mid-range | $25,000 to $60,000 | 50 to 60% |
| Bathroom remodel | $12,000 to $30,000 | 40 to 50% |
| HVAC system replacement | $7,000 to $14,000 | 50 to 60% |
| Electrical panel upgrade | $2,000 to $4,500 | 30 to 40% |
Seven red flags
- One lump sum with no scope, measurements, or materials named.
- Deposit above 30 percent, or payment demanded before materials are on site.
- Pressure to sign today for a discount that expires.
- No license number, no certificate of insurance, no written warranty.
- Allowances so low the change orders are guaranteed.
- Cash-only pricing.
- A bid more than 25 to 30 percent above two other bids for identical scope.
Make bids comparable
Write a one-page scope yourself - dimensions, materials, brands, finish level, timeline, cleanup and disposal - and send the same document to all three contractors. Most bid spread comes from contractors quoting different jobs, not different prices. Then compare unit rates: dollars per square foot, per fixture, per linear foot.
When a high bid is actually fine
A licensed, insured contractor with a two-year workmanship warranty, a realistic schedule, and permits included can legitimately be 15 to 20 percent above the cheapest bid. The problem bid is the one that is higher and vaguer.