# How to get three bids and actually compare them

Source: https://thehoustonhomeowner.com/guides/how-to-get-and-compare-bids
Publisher: The Houston Homeowner (https://thehoustonhomeowner.com)
Published: 2026-10-05

> Three bids only help if every bidder prices the same scope. Write the scope down before the first contractor arrives, hand each one the same sheet, and compare the bids line by line on materials, permit, warranty, exclusions and payment schedule, not on the total.

Three bids are the standard advice. Most people get three numbers for three different jobs and pick the cheapest. This guide is about getting three numbers for the same job.

## Write the scope before anyone arrives

Contractors bid what they see and what they think you want. If each one guesses differently, the bids are not comparable. Write a one-page scope and hand it to every bidder. You do not have to know the trade. You have to describe the problem, the outcome and the constraints.

### Scope template

```
Address and the best phone number
Problem: what is happening, since when, what you have tried
Outcome: what "done" looks like to you
Equipment or materials you want, if you have a preference (brand, grade, size)
Access notes: attic, slab, crawlspace, finished walls, pets, gate code
Constraints: dates you are unavailable, noise limits, HOA rules
Please include in your bid:
  - License number and who will be on site
  - Certificate of insurance from your agent
  - Permit: yes or no, and who pulls it
  - Materials by brand and grade
  - What gets opened and who closes it
  - What is excluded
  - Labor warranty in years, in writing
  - Payment schedule
  - Start date and number of working days
```

For a small repair, the first four lines are enough. For a roof, a repipe, a system replacement, a panel, a foundation or a remodel, use all of it.

## Get the bids in writing

A number on a business card is not a bid. A bid is a written document on the company's letterhead with the scope, the price, the exclusions, the warranty and the payment terms. Email is fine. A text with a number is not.

Let each contractor see the job in person unless it is a simple replacement. Walk them through the scope sheet. Ask what they would add or change and why. Write down what they say. A contractor who finds something the others missed is giving you information, not just a higher price.

## The apples-to-apples checklist

Lay the three bids side by side and check each line.

| Item | Bid 1 | Bid 2 | Bid 3 |
|---|---|---|---|
| License verified on the state site | | | |
| Insurance certificate from the agent | | | |
| Permit included and pulled by the contractor | | | |
| Same equipment or materials, same grade | | | |
| Same quantity: squares, feet, piers, fixtures | | | |
| Disposal and haul-off included | | | |
| Drywall, paint, concrete, landscaping restored | | | |
| Exclusions listed in writing | | | |
| Labor warranty in years | | | |
| Manufacturer warranty registered in your name | | | |
| Deposit and payment schedule | | | |
| Start date and duration | | | |
| Price | | | |

If a line is blank on one bid, call and ask. Most gaps are oversights. Some are the reason the bid is cheap.

Put the price last. Once the other twelve lines match, the price means something. Until then it does not.

## Why the middle bid is often right

The low bid is often missing something: the permit, the restoration, the grade of material, the insurance. The high bid is often carrying something you did not ask for: commission, financing cost, premium equipment, a bigger scope. The middle bid is usually the one with a complete scope and normal overhead.

This is a tendency, not a rule. If the low bid passes every line on the checklist, take it. If the high bid is the only one that found the real problem, take it. The checklist decides, not the position.

## How to negotiate without stripping scope

Negotiation that cuts the permit, the insurance, the restoration or the material grade is not negotiation. It is buying a worse job. Things that can move without hurting the work:

- **Timing.** Off-season work on roofs and AC systems is cheaper. A plumber with a slow week may discount.
- **Payment method.** Card processing costs the company 2 to 3 percent. Ask whether a check or cash changes the price.
- **Financing.** Zero-percent offers are built into the price. Ask the cash price.
- **Bundling.** Two jobs on one trip cost less than two trips.
- **Your own prep.** Clearing the attic, moving furniture, removing old fencing.
- **Tell them the gap.** "You are $1,400 higher than two other licensed bids on the same scope. What explains it?" Then listen.

Do not ask a contractor to match a lower bid. You will get the low bidder's scope at the honest bidder's name.

## Deposits and payment schedules in Texas

Texas does not cap deposits for most home service work. Custom and common sense do the job instead.

- **Small repairs.** Pay on completion. No deposit.
- **Equipment replacement.** Some companies take nothing until the day of install. Some take a deposit when they order a specific unit. Either is normal.
- **Large projects.** A deposit of 10 to 30 percent when materials are ordered, progress payments tied to milestones you can see, and a final payment of at least 10 percent held until the inspection passes and the punch list is done.
- **Warning signs.** More than half up front. Cash only. A deposit before you have a written contract. A request for the full price before materials are on site.

Pay by a method that leaves a record. Keep every receipt. Tie the final payment to the passed inspection and to signed lien waivers from the contractor and any subcontractors. The contracts and liens guide covers that part.

## Keep the losing bids

The two bids you did not take are still useful. If the winner adds change orders, you have a reference for what the work should cost. If the winner walks off the job, you have two companies that already know the scope.

## Frequently asked

**How many bids should I get?**

Three for anything over a few thousand dollars, such as a roof, a repipe, a system replacement, a panel, a foundation or a remodel. One is enough for a small repair from a licensed company you have used before. More than four wastes everyone's time and tends to confuse the comparison.

**Is it rude to tell a contractor what the other bids were?**

No. It is normal. Tell them the number is higher than others and ask what explains the difference. Do not ask them to simply match a lower bid. The honest ones will either explain their scope or decline the job.

**What deposit is normal in Texas?**

Texas does not cap deposits for most contractors, so it comes down to custom. Small repairs are paid on completion. Larger jobs often take 10 to 30 percent when materials are ordered, with the balance tied to milestones and a final payment after inspection. A deposit over half, before anything is delivered, is a warning sign.

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