The Short Answer
A complete bid covers 18+ line items — most bids only show 8–10.
A legitimate contractor bid should detail every major cost category: foundation, framing, roofing, mechanical systems, finishes, permits, site work, utility connections, and overhead. When items are missing, they do not disappear — they become change orders after you have already signed and started building.
What Every Contractor Bid Should Include
Use this checklist when reviewing any new construction bid. If a category is missing, ask your contractor to address it in writing before signing.
| Line Item | What to Look For |
|---|---|
| Foundation | Full excavation, footings, foundation walls or slab, waterproofing, backfill, and compaction. Not just "pour slab." |
| Framing | All lumber, hardware, sheathing, engineered beams, roof trusses or rafters, and labor. Crane costs if needed. |
| Roofing | Underlayment, decking, shingles or metal, flashing, ridge vent, gutters, and fascia. |
| Windows & Exterior Doors | Supply and installation. Ask if a specific brand/model is specified or if it is an allowance. |
| HVAC | Equipment supply and install, ductwork, registers, thermostats, and startup. Separate from electrical. |
| Plumbing | Rough-in, fixtures, water heater, supply lines, drain lines, exterior hose bibs, and pressure testing. |
| Electrical | Panel size, rough-in wiring, fixtures, outlets, switches, smoke detectors, and utility connection. |
| Insulation | Wall, ceiling, floor, and rim joist. Specify type (batt, blown, spray foam) and R-value. |
| Drywall | Hang, tape, mud, and finish. Ceiling texture if applicable. Number of coats specified. |
| Interior Trim & Doors | Baseboards, door casings, window trim, closet shelving, and interior doors with hardware. |
| Flooring | Material and installation. Ask if flooring is a fixed price or an allowance. |
| Cabinets & Countertops | Supply and install. Specify brand, grade, or allowance per linear foot. |
| Painting | Interior walls, ceilings, trim. Number of coats. Primer included? |
| Site Work | Clearing, grading, driveway, topsoil, seeding or sod. Often excluded entirely. |
| Permits & Fees | Building permit, plan review, inspections, trade permits. Many bids exclude these. |
| Utility Connections | Electric, gas, water, sewer tie-in fees. Can add $5,000–$30,000+ depending on location. |
| Cleanup & Dumpster | Job site cleanup throughout construction and final debris removal. |
| Contractor Overhead & Profit | GC markup is typically 15–25% over subcontractor costs. Should be clearly stated. |
What Is Usually Missing From Contractor Bids
These are the most common exclusions that turn a "affordable" bid into a much larger final bill. Ask about each one before signing.
Most bids assume a flat, clear lot. If your land needs clearing, grading, fill, or a long driveway, this is often a separate cost not mentioned until later.
Building permits, plan review, impact fees, and trade permits are frequently listed as "by owner" or simply left out. In some counties, permits alone exceed $10,000.
Running electric, gas, water, and sewer to the lot is often a separate contract with the utility company — not included in the builder bid.
Rural lots without sewer access need a septic system. This is almost never included in a standard contractor bid unless specifically requested.
Bids often include $30/sq ft flooring allowances and $150/linear ft cabinet allowances that do not match real product costs. Upgrades are almost guaranteed.
Final grading, sod or seed, landscaping, and the finished driveway are commonly excluded. You get a house but not a finished yard.
A contractor bid is a starting point, not a guarantee. Change orders, price increases, hidden conditions, and scope additions typically add 10–20% on top.
10 Questions to Ask Before Signing Any Bid
Get written answers to these questions from every contractor before you sign a contract.
Does this bid include permits, plan review, and inspection fees?
Is site work and grading included, or is that a separate contract?
Are utility connections to the street included?
What are the allowances for flooring, cabinets, countertops, and fixtures?
Is this a fixed-price contract or cost-plus?
What is your contingency and change order process?
Who are your subcontractors for framing, plumbing, HVAC, and electrical?
Is cleanup and debris removal included throughout the build?
What is your payment draw schedule tied to?
What is your warranty on labor and materials?
Compare Bids on the Same Scope, Not the Same Price
The most common mistake when comparing contractor bids is comparing total numbers without comparing what is included. A $280,000 bid that excludes permits, site work, and utility connections may cost more than a $320,000 bid that includes everything.
Always normalize bids to the same scope before comparing. Add missing items to the lower bid at market rates and see where things actually land.
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Walking into a contractor meeting without an independent estimate puts you at a disadvantage. You have no baseline to compare against, and you may not know what questions to ask or which items are missing.
A cost report gives you a detailed breakdown of what your project should cost in your location — before you hear a single contractor number.
Frequently Asked Questions
What should every contractor bid include?
Every contractor bid should include a full scope of work covering foundation, framing, roofing, windows, HVAC, plumbing, electrical, insulation, drywall, trim, flooring, cabinets, painting, site work, permits, utility connections, cleanup, and a clear statement of contractor overhead and profit margin.
Why are contractor bids often low at first?
Contractors sometimes provide a lower initial number to win the job, then use change orders to increase the price once work begins. Other times, exclusions are buried in fine print. Always ask for a full scope of work in writing before signing.
How do I compare multiple contractor bids?
Compare bids by scope, not just total price. Two bids at different prices may include completely different work. List what is explicitly included and excluded in each bid, then normalize them to the same scope before comparing numbers.
What is a reasonable contractor markup?
General contractor overhead and profit typically runs 15–25% over subcontractor costs. A markup below 10% may mean the contractor is underpricing and will use change orders later. A markup above 30% should be questioned.
Should I get a cost report before reviewing a contractor bid?
Yes. A cost report gives you an independent estimate of what your project should cost in your location. When you receive a contractor bid, you can compare it against the report to spot missing items, low allowances, or unusual markups.
Kerem is a construction cost analyst and architectural graduate with a degree from the Illinois Institute of Technology. He has spent over a decade analyzing residential and commercial build costs across all 50 U.S. states, and leads the cost methodology team at Equin Global LLC — the company behind CostToBuildHouse.com.
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