How to Read a Contractor Quote
Three quotes, three prices, three scopes — comparing them feels impossible until you know where the bodies are buried. Here is the anatomy of a quote and the five red flags that should kill a bid on sight.
Anatomy of a real quote
| Section | What good looks like |
|---|---|
| Scope of work | Specific tasks, quantities, and locations — "replace 22 squares architectural shingles, GAF Timberline HDZ" not "new roof" |
| Materials | Brand, model, grade specified — the exact unit, not "AC system" |
| Labor | Broken out or credibly bundled, with crew size and timeline |
| Allowances | Capped dollar figures for unknowns (decking per sheet) — never open-ended |
| Exclusions | Explicit list: permits, electrical, disposal, painting — so "cheap" bids show their gaps |
| Payment terms | Milestone-based; deposit under 30% for most jobs (many states cap it by law) |
| Warranty | Workmanship term separate from manufacturer term, both in writing |
Five red flags
- 1. One-line bid. "Replace AC — $6,500." No scope, no model, no recourse when anything differs. Reject outright.
- 2. Demanded cash or huge deposit. Over 50% upfront, cash-only "discounts," or pressure to pay before permits exist. Walk away.
- 3. Vague allowances. "Decking as needed" with no per-sheet rate is a blank check. Every unknown needs a capped unit price.
- 4. No license or insurance in writing. License number, general liability, and workers' comp should be on the quote. Verify the license with your state board — it takes five minutes.
- 5. Today-only pricing. Legitimate material quotes hold 30 days. Urgency is a sales tactic, not a supply chain.
How to compare three bids
Normalize scope first: same materials, same inclusions, same warranty terms — ask bidders to re-quote to a common spec if needed. Then compare: total price, exclusions, timeline, payment schedule, and warranty. The best bid is rarely the cheapest number; it is the cheapest complete number from a verifiable contractor.
The three-quote rule: always get three written quotes to a common spec. One bid is a price; three bids are a market. Outliers in either direction deserve questions, not signatures.