How to compare two remodeling estimates

Step 1: give every bidder the same inputs

The same-input rule. Before the site visits, give every bidder the same written scope: the room list, any drawings, the fixture and finish list, the appliance list and, in a co-op or condo, the building's alteration agreement. Bids built from different inputs cannot be compared, however carefully you read them.

Write down every item each proposal includes, then mark where they differ. Common gaps: one estimate includes electrical work and the other excludes it; one prices custom cabinets and the other stock; one includes disposal and floor protection and the other does not.

If the scopes differ, ask both contractors to price the same list. A fair comparison is the same work, the same materials and the same assumptions.

Step 2: read and normalize the allowances

An allowance is a placeholder amount for something you have not chosen yet, such as tile, a faucet or light fixtures. A low allowance makes a proposal look cheaper but shifts the cost to later. Compare allowances item by item, and ask whether each one includes installation or only the material.

To normalize allowances:

1. List each allowance in each bid: the item, the amount, and whether installation is included.
2. Pick one figure per item, ideally the price of a real product you would choose, and use it for every bid.
3. Add the difference to any bid whose allowance is lower, and record it as an adjustment, not a mistake.
4. Where one bid includes installation and another does not, ask the second bidder to price it.

Step 3: find the exclusions and owner-supplied items

• Permits, filing fees and design professional fees
• Plumbing, gas and electrical work by licensed trades
• Repair of hidden damage found after demolition
• Demolition, disposal, dumpster and protection of floors, halls and elevators
• Painting and patching of adjoining rooms
• Appliance installation and hookups
• Lead-safe work practices in a home built before 1978
• Heating, cooling and ventilation changes: exhaust fans ducted outside, a range hood route, radiator or duct moves
• The asbestos assessment DOB requires before a permit, and any abatement
• Building or board requirements: deposits, insurance certificates, elevator bookings and work hours

Owner-supplied items. If you buy fixtures, tile or appliances yourself, each bid should say who receives and checks the deliveries, who stores them, who installs them, and who is responsible if an item arrives damaged or does not fit.

The scope lines that most often differ between bids

Step 4: check the contract requirements under New York law

New York General Business Law section 771 sets requirements for written home improvement contracts. Read the statute, or ask NYC's Department of Consumer and Worker Protection (DCWP) or the Suffolk County Department of Consumer Affairs, before you sign.

Step 5: verify the license for your location

In New York City, the Department of Consumer and Worker Protection (DCWP) requires a home improvement contractor license for work costing more than $200 on a residential building. You can check a license by calling 311 or through nyc.gov/dcwp. DCWP also advises paying no more than 25% of the contract amount upfront, never paying in cash or without a contract, and notes that homeowners who use an unlicensed contractor are not eligible for its Trust Fund repayment options.

In Suffolk County, home improvement licensing is handled by Suffolk County Consumer Affairs, which offers an online search of licensed contractors.

Current lookup routes (checked 2026-11-08). These are the official routes as they appeared on that date. Pages and tools change, so start from the agency's own site rather than a saved link.

1. Write down the business name, the individual's name and the license ID exactly as they appear on the proposal.
2. Look up the license on the route for the county where the house is, not where the contractor's office is.
3. Check that the name, business name and license ID match the proposal, and note the status and the date you checked.
4. Run a separate complaint search where the agency offers one (in Suffolk, search without selecting a license type; in NYC, ask 311 for a business background check).
5. Ask separately for licenses that the home improvement license does not cover, such as a licensed plumber or electrician, and for the EPA lead-safe firm certification in a pre-1978 house.
6. Keep a screenshot or note of each result with the proposal.

Suffolk County licenses home improvement contractors under Chapter 563 of the County Code. For what it requires, read the chapter or ask the Suffolk County Department of Consumer Affairs.

Step 6: compare how changes will be handled (change orders)

Every renovation meets something unexpected. Ask each contractor how a change will be documented, priced and approved, and whether work stops until you sign. A clear written change-order process protects both sides and keeps the final price traceable.

For how changes to a home improvement contract must be made, see GBL section 771 (Step 4). DCWP's home improvement tips page also links a sample change order form. Ask each contractor to show you the form they use, and compare what it records.

• What is being changed, described as specifically as the original scope
• Why: owner request, a hidden condition found after demolition, or a code or inspector requirement
• The price effect, shown as an amount added or credited, and whether any allowance is used up
• The effect on the schedule, if any
• Signatures and date from both sides before the changed work goes ahead
• A running log, so the final total can be traced from the contract price through every signed change

When two proposals handle changes differently (for example, one prices changes at a stated markup and the other at time and materials), note that in the comparison table. A lower base price with an unclear change process can end up harder to compare than it looks.

Step 7: check insurance and who files the permits

• Insurance: ask each contractor for a certificate of insurance, and in a co-op or condo compare it with what the building's alteration agreement requires.
• Permits: in New York City, DCWP says the contractor must make sure the appropriate party obtains the permits city law requires. Ask each bidder who files, in whose name, and whether filing fees are in the price.
• Payment schedule: line up when each payment is due against what will be finished by then, not against dates alone.

Step 8: compare schedule, supervision and warranties

Schedule. Check that the contract states start and completion dates (Step 4). Compare both bids against the same scope, and ask what happens to the dates when a board, LPC or DOB step takes longer than planned.

Who runs the job. Ask each bidder to name who supervises the site day to day, who coordinates the licensed trades, who books inspections and whom you call with a problem. A lower bid that leaves coordination to you is not the same job.

Warranties. Ask that all charges and warranties are written into the contract. Compare what each warranty covers (workmanship, materials or both), for how long, what voids it and how a claim is made, and make sure it is written into the contract.

Worked example: leveling two bids (hypothetical numbers)

Two bids for the same bathroom arrive: Bid A at $40,000 and Bid B at $46,000. Read side by side, three differences appear.

Once both bids price the same scope, the cheaper bid is the more expensive one. The placeholders are only a starting point: ask Bid A to price the missing work itself, and ask Bid B whether its tile allowance includes installation.

Putting it together: a comparison workflow

1. Collect each proposal in writing and put it into the side-by-side table below.
2. Give every bidder the same inputs (Step 1) and ask for re-pricing where the scopes still differ.
3. Compare allowances and exclusions line by line (Steps 2 and 3).
4. Level the bids: normalize allowances and add placeholder lines for omitted scope, as in the worked example, then ask each bidder to price its gaps.
5. Check each license on the official route for the house's county and note the date (Step 5).
6. Compare payment schedules and the change-order process (Steps 4 and 6).
7. Compare schedules, supervision and warranties (Step 8).
8. Read the contract itself against the GBL section 771 list before signing, and keep your signed copy.
9. If anything about your rights is unclear, ask an attorney before signing or paying a deposit.