How to Compare Two GC Bids in Florida: Beyond the Total

Two GC bids arrive. One is $320,000. One is $380,000. The $320,000 contractor gets the job.

Six months later, the owner has paid $395,000 and the project isn't done. The $380,000 contractor was probably the better deal — but the bid comparison was done on total price alone, without looking at what the scope documents actually said.

This is the most common financial mistake Florida homeowners and developers make when hiring a general contractor (GC). Price comparison without scope comparison is not a comparison at all. Here's the five-factor framework for doing it right.

Kitchen renovation plans and finish samples arranged on a worktable — Editorial illustrationPlans, finish samples, and blank scope documents show why the number on a bid only becomes meaningful when its contents are defined.

Why Price Comparison Without Scope Documents Is Meaningless

Two bids for the same project can have a $60,000 difference in total price and carry identical real costs — if one includes items the other excludes, if one uses fixed prices where the other uses allowances, and if one has a front-loaded payment schedule that benefits the GC at the owner's expense.

The total number on the bid cover page tells you almost nothing about what you're agreeing to pay. The scope document behind it tells you everything.

Before comparing any two bids, request — and insist on receiving — the full scope document, inclusions and exclusions list, allowance schedule, and payment terms from each GC. If a GC won't provide these, that's the finding.

Factor 1: Scope Inclusions and Exclusions

Every GC bid includes something and excludes something. The question is whether the inclusions and exclusions are clearly stated.

What to look for: A complete bid has an explicit inclusions list (what's in the price) and an explicit exclusions list (what isn't). Common exclusions include permit fees, design fees, survey costs, utility connection fees, owner-furnished materials, landscaping, and temporary utilities.

How the math changes: If Bid A at $320,000 excludes permit fees, design fees, and utility connections — and those items total $25,000 — the real cost of Bid A is $345,000. If Bid B at $380,000 includes all of those items, the real gap is $35,000, not $60,000.

Red flag: A bid with no exclusions list. This doesn't mean everything is included — it means the GC hasn't documented what isn't, and you'll find out through change orders.

Ask each GC directly: Is the permit fee included? Is demo included? Who furnishes the dumpster? Is temporary power in the price? Get written answers.

Blank estimate grids, calculator, ruler, and finish samples on a table — Editorial illustrationEstimate sheets and material samples make allowances visible, so placeholder amounts can be converted into comparable real costs.

Factor 2: Allowances vs. Fixed Prices

An allowance is a placeholder — a number in the bid that represents an estimated cost for an item not yet specified. The most common allowances: tile, cabinetry, windows, light fixtures, plumbing fixtures, flooring, and appliances.

Allowances are the primary mechanism by which a low bid becomes an expensive project. Here's the math:

Bid A shows a $12,000 cabinet allowance. Your actual cabinet selection costs $28,000. The GC issues a change order for $16,000 plus markup.
Bid B shows a fixed price for cabinets at $27,500 based on the specific product line you specified.

Bid A looks $15,500 cheaper at signing. Bid B is $500 cheaper at completion — and you knew the number before you started.

How to compare allowances: Convert every allowance in each bid to a real cost by getting a quote for the actual product or making a selection before contract signing. Add the difference between the allowance and the real cost to the bid total. Now compare.

JK Prestige's approach: JK Prestige's fixed-price contracts replace allowances with fixed prices wherever the owner has made a specification. Where the owner hasn't yet decided — tile selection, fixture finish — we identify the decision and give the owner a deadline for making it before contract signing.

Factor 3: Contingency Allocation

Some GC bids include a defined contingency line — typically 5-10% of project cost — to cover unforeseen conditions and minor scope adjustments. Others don't show a contingency line at all.

Why this matters: A GC who carries a defined contingency is planning for what they'll find during construction. A GC who carries no visible contingency either expects a perfect project or plans to fund unforeseen conditions through change orders.

What to ask: Is there a contingency in the price? How is it drawn — with owner approval or unilaterally? What happens to unused contingency at project close? Does it come back to me or does the GC keep it?

The right structure: Owner-controlled contingency — a defined dollar amount in the budget that requires owner sign-off to draw, and reverts to the owner if not spent. GC-controlled contingency for field conditions is appropriate, but should be separately defined and draw-reported.

Factor 4: Payment Schedule

The payment schedule in a GC bid determines who holds leverage throughout the project. There are two structures:

Front-loaded payment schedule: Large initial deposits (20-30% at signing, another 20-30% at mobilization) that pay the GC significantly ahead of work completed. The GC holds the owner's money. If the GC has cash flow problems, slows down, or abandons the project, the owner has paid for work not yet done.

Milestone-based payment schedule: Payments tied to defined project completions — permit issuance, foundation complete, framing complete, MEP rough-in, drywall complete, substantial completion, final. Each payment tracks actual progress. The GC can only draw ahead of the owner's investment if they're ahead on work.

What to compare: Map both payment schedules against a realistic project timeline. Calculate how much of the total contract price each schedule requires at each month of the project. The schedule that keeps the owner's cumulative payment closest to the GC's actual work completion is the better structure.

JK Prestige's payment schedules are milestone-based. Payments are triggered when defined work is complete and verified — not by calendar dates or the GC's cash needs.

Factor 5: Warranty Terms

Warranty terms are the last comparison factor and the most frequently skipped. Most homeowners assume all GCs carry the same warranty because "that's the law in Florida." This is wrong.

Florida warranty minimums: Florida Statute 553.835 provides one year for workmanship defects, 2 years for MEP systems, and 10 years for structural defects on new construction. These are floors, not ceilings.

What to compare:

Duration: Does the warranty cover one year or more?
Who handles calls: Does the warranty response route to a project coordinator, a call center, or the principal who built your project? If a drywall crack appears 8 months after occupancy, do you talk to the same person who supervised the drywall crew?
Response time: Is there a defined response time (24 hours, 48 hours) in writing?
Exclusions: What does the warranty not cover? Normal wear, owner-caused damage, and certain moisture issues are standard exclusions. Review them.

JK Prestige's warranty structure: One-year workmanship warranty with a named principal who handles all warranty calls. Direct number in the contract. JK Prestige self-performs framing, drywall, and roofing — the same crews that did the work are accountable for the outcome. See JK Prestige's warranty terms.

Abstract plan sheets, ruler, clipboard, and laptop on a jobsite table — Editorial illustrationAn organized review table represents the side-by-side process needed to normalize scope, allowances, payment terms, and warranty details.

The Side-by-Side Comparison Checklist

Use this checklist to compare any two GC bids in Florida:

Scope:

[ ] Is permit fee included or excluded? Amount?
[ ] Is demolition and disposal included?
[ ] Who provides temporary power and water?
[ ] Are design fees in the price?

Allowances:

[ ] List every allowance in each bid
[ ] Convert each allowance to a real cost using actual product quotes or selections
[ ] Add allowance overages to the bid total for true comparison

Contingency:

[ ] Is contingency defined in the price?
[ ] Who controls draw authority?
[ ] What happens to unspent contingency?

Payment schedule:

[ ] Map payment dates against project milestones
[ ] Calculate cumulative payment at each project month
[ ] Identify the maximum owner exposure (paid vs. work complete) at any point

Warranty:

[ ] Duration?
[ ] Who handles the call?
[ ] Response time?
[ ] What's excluded?

Complete this checklist for both bids before making a selection. The adjusted total — bid price plus allowance overages plus excluded costs — is your real comparison number. Contact JK Prestige Constructor to review a completed side-by-side comparison of your current bids, or to request a JK Prestige proposal with full scope documentation.

Get a written estimate in 48 hours.

No call center. No coordinator. A JK principal reviews every inquiry and replies with a real number, not a range, not a follow-up form.

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Frequently Asked Questions

Why is the lower of two GC bids sometimes the more expensive choice in the end?

A bid can look cheaper on the cover page while excluding items like permit fees or design fees that the other bid includes, or by using low allowances that convert into change orders once real selections are made. The total number alone tells you almost nothing about what you're actually agreeing to pay. Request the full scope document, inclusions and exclusions list, and allowance schedule from each GC before comparing anything.

What is an allowance and why does it matter when comparing bids?

An allowance is a placeholder dollar amount for an item that hasn't been specified yet, like tile, cabinetry, or light fixtures. Convert every allowance in each bid to a real cost using an actual product quote or your actual selection, then add the difference to the bid total for a true comparison. A low allowance is frequently what makes an otherwise cheap bid look cheap at signing.

What is the difference between a front-loaded and a milestone-based payment schedule?

A front-loaded schedule pays the GC well ahead of completed work, through large deposits at signing and mobilization, which means you've paid for work that isn't done yet if the GC slows down or has cash flow problems. A milestone-based schedule ties payments to defined progress, like foundation complete or drywall complete, keeping your cumulative payment closer to actual work finished. Map both schedules against a realistic timeline before choosing between two bids.

How to Compare Two GC Bids in Florida: What the Numbers Don't Show Without the Scope Documents