How to Compare Two GC Bids on the Same Project in Florida

You collected two bids on your kitchen renovation. One is $95,000. One is $125,000. The instinct is to call the lower number and start asking for a discount. That instinct produces bad outcomes more often than not.

Two bids on the same project are almost never bids on the same scope. Allowances — those placeholder dollar amounts for tile, fixtures, and cabinets — are usually different. One contractor includes permits; one does not. One contractor self-performs framing and drywall; one brokers everything to subs with a 15–20% markup. One contractor has a $0 retainage clause; one holds 10%.

Bid comparison is not arithmetic. It is a scope-alignment exercise that usually requires a direct conversation with each contractor. Here is how to do it correctly.

Step 1: Confirm Both Bids Cover the Same Scope

Before you compare a single number, read both bids line by line and identify what each one explicitly includes and excludes. Pay attention to the exclusions list — it is often longer than the inclusions list, and it is where the price difference lives.

Common scope gaps between bids on the same project:

• One bid includes demo and hauling; one does not
• One bid includes paint; one lists "painting by owner"
• One bid includes permit fees; one lists permits as "additional at cost"
• One bid includes appliance installation; one includes delivery only
• One bid specifies a specific countertop thickness and edge profile; one says "stone countertop per allowance"

Mark every line that differs between the two bids. Do not compare total numbers until both bids cover identical scope. If a scope gap exists, call each contractor and ask for a revised number that includes the missing item. This step alone usually closes 30–50% of the apparent price gap.

Step 2: Compare Allowances Line by Line — This Is Where Bids Lie

Allowances are the most misunderstood part of a construction bid. An allowance is a placeholder amount for an item that has not yet been selected — tile, plumbing fixtures, light fixtures, appliances, cabinetry. The contractor is not promising to build the project for the total bid price; they are promising to apply the allowance amount toward those items.

If your actual selections exceed the allowance, you pay the difference. If they come in under, you get a credit.

A classic scenario: Contractor A bids a kitchen renovation at $95,000 with a $12,000 cabinet allowance. Contractor B bids $118,000 with a $28,000 cabinet allowance. Semi-custom cabinets for a 12-foot run cost $22,000 installed. With Contractor A, you owe a $10,000 change order on cabinets alone. Total actual cost: $105,000. With Contractor B, you get a $6,000 credit. Total actual cost: $112,000. The gap between bids has narrowed to $7,000 — and Contractor B has a more accurate number.

Request that both contractors use the same allowance amounts based on your actual selections or a defined product tier. That is the only way to make the comparison valid.

Step 3: Compare Contingency Structure — Who Carries the Risk?

Some fixed-price bids include a built-in contingency line (typically 5–10% of construction cost) that the contractor carries as risk protection against unforeseen conditions. Others do not include a contingency — meaning any unforeseen condition triggers a change order.

Ask each contractor: "What happens if you open the wall and find rotted framing or old galvanized pipe that needs replacement? Is that covered in your price, or does it come as a change order?"

The answer reveals the contract's risk structure. A contractor who says "that would be a change order" is not hiding anything — unforeseen conditions are a legitimate category of extra cost. But the structure of how that conversation happens matters. Do you see a written change order with itemized cost before work continues? Or do you get a phone call with a verbal number while demo is mid-stream and you feel pressure to approve?

Ask for the change order clause in writing. It should specify: written change order required before any additional work, owner signature required, and work stops (or does not proceed) pending owner approval.

Step 4: Check Payment Schedule — Front-Loaded Terms Are a Warning Sign

A construction payment schedule should track closely with work completed. You should be paying for value received, not advancing funds for work not yet done.

A reasonable payment schedule for a $100,000 residential renovation looks something like:

• 10% at contract signing — mobilization, permit fees, material deposits
• 25% at demo completion / rough-in start
• 25% at rough-in completion / drywall start
• 25% at drywall complete / finish work start
• 15% at substantial completion and punch-list sign-off

A front-loaded payment schedule — where a contractor requests 30–50% upfront before significant work is completed — is a warning sign. It either indicates cash flow problems (the contractor needs your money to pay for other jobs), poor business management, or in the worst case, a contractor who collects a large deposit and disappears.

In Florida, unlicensed contractor fraud almost always involves large upfront payments. The Florida Construction Lien Law (Chapter 713) does not protect you from a contractor who takes your deposit and leaves — it governs liens on completed work, not deposit theft.

Compare the payment schedules of both bids. If one is front-loaded, ask why.

Step 5: Look at Warranty Terms

Contractor workmanship warranties vary widely. Standard terms in Florida residential construction run 1 year on workmanship, with manufacturer warranties passing through on products and materials. Some contractors offer extended warranties on specific systems — roofing, waterproofing, HVAC installation.

Read the warranty clause in both bids. Ask:

• What is covered and for how long?
• What is the process for making a warranty claim? (Who do you call, and what is the response time?)
• Are manufacturer warranties passed through to you in writing?
• What exclusions apply? (Normal wear, owner modifications, etc.)

A contractor who offers a 1-year workmanship warranty and no clarity on the claim process is offering less than one who offers the same term with a defined response time and written escalation path.

Step 6: Verify Who Pulls Permits — Non-Negotiable in Florida

The contractor of record on a Florida building permit is the licensed professional legally responsible for the work meeting code. Ask both bidders: "Will you pull all permits for this project under your license?"

If either contractor suggests that you pull permits as owner-builder, or that permits are not required for this scope, resolve that question immediately with Duval County Building Services before proceeding. Owner-builder permits are intended for homeowners who perform their own work — not for owners hiring contractors. A contractor who works under an owner-builder permit is avoiding accountability.

Verify that permits will be posted on site before demo begins, and that all required inspections are scheduled and completed before walls close.

Step 7: Ask Who Does the Actual Work — Self-Perform vs. All Brokered

A general contractor who self-performs framing, drywall, finish carpentry, and concrete has more cost control and schedule accountability than one who brokers every trade to subcontractors at a markup.

Ask both contractors: "Which trades do your employees perform, and which do you subcontract?"

Self-performing trades typically include framing, concrete, rough carpentry, drywall, and finish carpentry. Specialty trades — plumbing, electrical, HVAC, tile, roofing — are often subcontracted even by large GCs. The key question is whether the GC is adding value through project management and scheduling, or primarily marking up subcontractor prices.

A GC who self-performs 60–70% of a project's labor has more flexibility to manage cost, schedule, and quality than one who is entirely dependent on subcontractor availability and pricing. JK Prestige self-performs framing, concrete, drywall, finish carpentry, and roofing — which means direct accountability on the majority of labor hours on most projects. See the JK Prestige approach.

Step 8: The Lowest Bid Is Rarely the Best Bid

A low bid is a promise about what a project will cost. It is not a guarantee unless it is backed by a fixed-price contract with a clearly defined scope, accurate allowances, and a clear change order clause.

The lowest bid on a residential project is often lowest for one of four reasons:

1. Scope omissions: Items are missing from the bid that will appear as change orders later.
2. Low allowances: The allowances are not realistic for any material selection the owner would actually make.
3. Subcontractor dependence: The contractor plans to bid out all trades after winning the job and hopes the subcontractor market cooperates.
4. Contractor desperation: A contractor with cash flow problems bids low to win work and funds earlier projects with your deposit.

None of these is a reason to choose the higher bid automatically. But each is a reason to ask follow-up questions before signing. Ask the low bidder to explain the gap. A legitimate low bidder can explain exactly where their number differs — lower overhead, a different material source, self-performed labor. If the explanation is vague, that is the answer.

See how JK Prestige structures transparent, itemized fixed-price proposals to make comparison clear.

Get a written estimate in 48 hours. Call (904) 944-0278 or request a consultation.