Three bids for the same commercial buildout can land tens of thousands of dollars apart, and the gap usually isn't because one contractor is honest and the others are padding. It's because the three bids don't describe the same job. One includes the fire alarm changes, one carries a placeholder allowance for them, and one excludes them in a line on page four. Before you can compare prices, you have to make the bids comparable. Here's how to do that, section by section.
1. Send every bidder the same scope
The most useful step happens before any bid arrives: give every contractor the same drawings, the same written scope and the same due date. If you have construction documents, list the sheet numbers and revision dates in your request so you know everyone priced the same set. If you don't have drawings yet, write a one- or two-page scope sheet covering the space and its square footage, what gets demolished and built, the finish level, who supplies equipment and fixtures, allowed work hours, and your target start and completion dates.
When a bidder asks a question that changes the scope, answer in writing and send the answer to every bidder. Otherwise one contractor prices your answer and the others price their own assumption. Our guide to getting multiple contractor bids covers the request side in more detail.
2. Ask for a line-item breakdown, not just a lump sum
Most commercial work is contracted as a lump sum (a fixed price), and that's fine. But the bid should still break the price into parts so you can see where the money goes. A useful breakdown follows the trades: demolition, framing and drywall, doors and hardware, ceilings, flooring, paint, plumbing, HVAC, electrical, fire protection and specialties, plus general conditions and fee as separate lines.
Two bids with similar totals can hide very different assumptions. If one carries $8,000 for electrical and another carries $38,000, somebody misread the scope, and you want to know who before you sign. A one-line total can't be compared. If a contractor can't produce a breakdown, they probably didn't build the number from your scope.
3. Read allowances, exclusions and qualifications before the total
This is where most of the gap between bids lives.
- Allowances are placeholder amounts for items not yet selected, such as flooring, light fixtures or signage. The final cost moves with what you choose. An unrealistically low allowance makes a bid look cheaper than it will be. If allowances differ across bids, set one number for each and ask every bidder to carry it.
- Exclusions are work the bidder won't do. Common ones on commercial jobs: permit fees, fire alarm and sprinkler modifications, low-voltage cabling, utility company charges, after-hours work, patching outside the work area, and accessibility review fees. Each exclusion is a cost you'll pay someone else.
- Qualifications (or assumptions) are conditions the price depends on, like "existing HVAC is in working order" or "no work above the ceiling." If a qualification turns out to be wrong, expect a change order.
List every exclusion across all bids. For each one, either ask the other bidders to include it or estimate it yourself and add it to the bid that left it out. Now you're comparing like with like.
4. Price alternates separately
If you're undecided about an upgrade, such as polished concrete instead of vinyl plank, a second restroom or a new storefront, ask every bidder to price it as an alternate: a separate add or deduct on top of the base bid. Compare base bids to base bids and alternates to alternates. Folding an upgrade into one bid and not the others is a quick way to pick the wrong contractor.
5. Look at general conditions and fee
General conditions are the cost of running the job rather than building it: the superintendent and project manager, temporary utilities and toilets, dumpsters, final cleaning, equipment and sometimes permits and insurance. Overhead and profit, often called fee, is the contractor's markup. Contractors present these differently; some show separate lines, some spread them across the trades. Neither is wrong, but if one bid's general conditions are far below the others, check whether a superintendent is actually staffed for your schedule. On a complex buildout, thin supervision is a risk, not a saving.
6. Compare schedule and mobilization
Ask each bidder for a proposed start date, a duration, and the long-lead items that drive it. Rooftop units, electrical gear, storefront glass and kitchen hoods are common culprits. A cheaper bid that starts six weeks later can cost more once you count rent on a space you can't open yet. Ask how soon they can mobilize after the contract is signed and the permit is issued, and whether the schedule assumes normal hours or after-hours work.
7. Check contingency and change-order terms
Some contractors carry a contingency inside the bid for unknowns; others carry none and handle everything by change order. You need to know which. Ask each bidder for the markup they'll apply to change orders and their hourly rates for time-and-material work. A low base bid with a steep change-order markup can become the most expensive job you sign, especially in older buildings where conditions behind walls and above ceilings are unknown. Keep your own owner contingency either way.
8. Compare payment terms and retainage
Look at how each contractor expects to be paid: any deposit or mobilization payment, progress billing (usually monthly against a schedule of values) and final payment. Be cautious about large payments before work starts.
On private projects in Texas, two parts of the Property Code set the baseline. Chapter 28, the Prompt Payment Act, generally requires an owner to pay a contractor's properly submitted payment request within 35 days, and requires the contractor to pay its subcontractors within seven days of being paid. Chapter 53, the construction lien statute, generally requires the owner to retain 10 percent of the contract price until 30 days after the work is completed, which helps protect you from liens filed by unpaid subcontractors. Your contract can add terms of its own, so have it reviewed, and collect lien waivers with each payment (item 10 of our contractor vetting checklist).
9. Verify licenses and insurance for the regulated trades
Texas doesn't license general contractors at the state level, but trades inside your project are licensed: electrical and HVAC by TDLR, plumbing by the Texas State Board of Plumbing Examiners, and fire sprinklers and kitchen hood suppression by the State Fire Marshal's Office. Ask each general contractor to name its subcontractors for those trades, then look the licenses up yourself. Request certificates of insurance naming your business as additional insured, and check that the limits meet your lease.
If the project's total estimated cost is $50,000 or more, it must be registered with TDLR for accessibility review, with plan review and an inspection by a Registered Accessibility Specialist. Check whether each bid includes that coordination and those fees. More on checking credentials in how to find licensed contractors in Texas.
10. Compare warranties
Standard commercial contract forms commonly include a one-year period after substantial completion during which the contractor must correct defective work. Confirm in writing what each bidder offers, when it starts and which manufacturer warranties pass through to you, such as roofing, HVAC equipment or water heaters. Ask who you call for warranty service and how quickly they respond.
Red flags
- The lowest bid is well below the others and has the longest list of exclusions. It's usually cheapest because it covers less.
- No breakdown, or allowances that are plainly too low for the finish level you described.
- The bidder won't name subcontractors for licensed trades, or asks you to pull the permit yourself.
- A large deposit before mobilization, or pressure to sign before other bids are in.
- Vague language such as "per code" or "as required" in place of quantities and specifications.
- A bid that expires in a few days with no reason given, such as a material price hold.
A bid comparison template
Put the bids side by side in a spreadsheet with one column per bidder and these rows. Fill in every cell; a blank cell is a question to ask the bidder.
| Row | What to record |
|---|---|
| Scope priced | Drawing set and revision date, or scope sheet version |
| Base bid | Total, plus the line-item breakdown by trade |
| General conditions | Amount, and whether a full-time superintendent is included |
| Overhead and fee | Amount or percentage, or "included in trades" |
| Allowances | Each item and amount; adjust to your common number |
| Exclusions | Each item, and your estimate of what it will cost |
| Alternates | Each alternate as an add or deduct |
| Schedule | Start date, duration, long-lead items, work hours |
| Contingency | Included or not, and how it is released |
| Change orders | Markup percentage and hourly labor rates |
| Payment terms | Deposit, billing cycle, retainage, final payment |
| Licensed trades | Subcontractor names and license numbers, verified |
| Insurance | Certificate received, limits, additional insured |
| Warranty | Length, start date, manufacturer warranties |
| Adjusted total | Base bid + exclusions + allowance corrections |
The adjusted total is the number to compare. It's often a different bid than the one with the lowest base price.
How BidBridge's compare view helps
When you post a project on BidBridge Texas, each verified contractor submits a structured bid with the total price, a labor and material split, proposed start and completion dates, and scope notes. Once you have two or more bids, the compare view lines them up side by side with each contractor's license and insurance status, years in business and team size. It flags the lowest price, the earliest start and the shortest timeline based on the numbers each contractor entered. Those flags aren't a recommendation; they show the trade-offs at a glance so you can work through scope notes, exclusions and terms using the steps above. Your contact details stay private until you choose to request contact.
It also helps to know roughly what the project should cost before bids arrive. The cost estimator gives a planning range by project type, size and Texas metro. If you're leasing, check how your tenant improvement allowance is paid out, since it affects how you'll fund progress payments. When you're ready, post your project free or read more about hiring commercial general contractors in Texas.