How to read a construction bid like a pro

A construction bid is the start of a partnership. The better you understand it, the better the project — for everyone. A clear bid means the contractor knows exactly what they're building, the homeowner knows exactly what they're buying, and there's nothing left for either side to guess about later.

A great bid does three things. It names every assembly (cabinets, counters, electrical, plumbing rough-in, drywall, paint), it attaches a real unit price to each, and it spells out allowances in dollars — not "TBD."

Five things to look for, or ask about, in any bid:

1. A breakdown of labor by trade or phase, not a single lump sum. 2. Allowances written as a dollar figure with a clear scope ("$4,000 for tile, supply only"). 3. Change-order language with a stated markup so both sides know the math up front. 4. A payment schedule tied to observable milestones rather than just dates. 5. Who pulls permits, schedules inspections, and how much that's expected to cost.

If anything's missing, just ask. A great contractor will welcome the conversation — clear paperwork makes their job easier too, and the projects that start with a complete bid almost always finish well.