Guide
How to Compare Contractor Bids for a House Flip
Team RE Underwrite Lab
To compare contractor bids for a house flip, put each quote against the same written scope. Add costs you would still pay for excluded work, check allowances against the materials you expect to buy, and compare the payment dates. The low bid may turn out to cost more once both contractors are pricing the same job.
Copy this contractor bid comparison template
| Scope or term | Bid A | Bid B |
|---|---|---|
| Demo, disposal and site protection | ||
| Mechanical, electrical and plumbing work | ||
| Finish quantities and product specifications | ||
| Materials allowances and installation inclusions | ||
| Permits, inspections and closeout responsibilities | ||
| Owner-supplied items and excluded work | ||
| Deposits, milestones and estimated completion | ||
| Adjusted cost for the same scope |
Level the bids before picking a rehab number
Bid A is $38,000 and excludes $2,500 in disposal and $3,500 in electrical work. Its finish allowance is $1,500 below the written spec. That brings its adjusted cost to $45,500. Bid B is $44,000 and includes those items at the specified level. On the example scope, Bid B is $1,500 lower after adjustment. Confirm the exclusions and prices in writing before relying on either figure.
An allowance is a placeholder for a selection or quantity that has yet to be finalized. If a quote includes $2,500 for cabinets and your specified cabinets cost $4,000 on the same basis, add the $1,500 difference. Check separately whether delivery, installation and any contractor markup are included. Carry unresolved work on its own budget line and document what would trigger it.
Compare cash timing and change orders
Ask each contractor when the deposit and milestone payments come due and how a change is priced and approved. If your lender reimburses work after inspection, line up contractor due dates with the draw schedule. A larger deposit can increase the cash needed at the start even if the final bid is lower. Use the worked example to map out your rehab draw schedule.
Use the rehab cost estimator for a first-pass number before bids arrive. Once you have a reconciled scope and contingency, use the resulting rehab budget as an input to the fix and flip calculator.
Example only. Not financial, investment, legal, tax, lending, or appraisal advice.
Estimates only. Not financial, legal, tax, or investment advice. RE Underwrite Lab calculators and PDF reports provide educational estimates based on the numbers you enter. Actual purchase costs, rents, expenses, financing terms, taxes, insurance, vacancy, rehab costs, refinance eligibility, and returns vary by property, market, lender, and local law (including short-term rental rules). We do not guarantee any outcome, profit, cash flow, or appraisal. Some content and tools may be generated or assisted by artificial intelligence and can contain errors. Always verify assumptions with licensed professionals and your own due diligence before making decisions.