If you’ve ever requested multiple estimates for a remodeling project and felt confused by how far apart the numbers were, you’re not alone. Homeowners often receive bids that vary by thousands of dollars, sometimes for what appears to be the same scope of work.

So why does contractor pricing vary so much?

The short answer: you’re rarely comparing the same thing.

The longer (and more important) answer is below.

You’re Not Comparing Apples to Apples

Even when contractors walk the same space and hear the same goals, the estimates they produce can be wildly different. That’s because pricing is influenced by far more than square footage or finishes.

What looks like the “same project” on the surface can include:

• Different assumptions
• Different quality standards
• Different levels of risk
• Different degrees of oversight and accountability

Those differences matter.

The Real Factors That Drive Price Differences

1. Scope Definition (What’s Actually Included)

Some estimates are detailed and comprehensive. Others are intentionally vague.

Missing line items don’t mean free work, they usually mean:

• Future change orders
• Delays
• Budget surprises

A lower price often reflects less defined scope, not better value.

2. Material Allowances vs. Real Selections

Many bids include “allowances”, placeholder numbers for materials that haven’t been selected yet.

If one contractor budgets realistically and another uses low placeholder numbers, the cheaper bid may look attractive upfront but climb quickly once real selections are made.

3. Labor Quality and Supervision

Not all labor is equal.

Pricing can differ based on:

• Skill level of trades
• Crew consistency
• On-site supervision
• Quality control standards

A project with active management and experienced crews will cost more and typically deliver fewer issues during and after construction.

4. Permits, Inspections, and Code Compliance

Some contractors include permits, inspections, and code-required work in their pricing. Others assume they won’t be required or leave them out entirely.

Skipping this upfront may reduce the initial number, but it increases risk for the homeowner later.

5. Project Management and Communication

Who is coordinating trades?

Who is your point of contact?

Who answers questions, schedules inspections, and resolves issues?

Projects that include professional project management, clear communication, and accountability cost more because they prevent problems instead of reacting to them.

6. Risk, Insurance, and Warranty

Licensed, insured contractors who stand behind their work carry real overhead:

• Insurance
• Warranty obligations
• Long-term accountability

That cost is built into pricing, and it protects you.

Why the Lowest Bid Often Ends Up Costing More

The lowest price isn’t always wrong but it deserves closer inspection.

Low bids often rely on:

• Incomplete scope
• Minimal supervision
• Aggressive change orders
• Rushed schedules
• Reduced quality control

What looks cheaper on paper can become more expensive through stress, delays, and corrections.

Where We Stand

At Summit Construction Solutions, we price projects to be completed correctly, not just awarded.

That means:

• Clear, defined scope
• Realistic material allowances
• Professional project management
• Fewer surprises during construction

Our goal isn’t to be the cheapest option, it’s to deliver a process and result you can trust.

How to Compare Contractor Bids More Confidently

When reviewing estimates, ask:

• What’s included and what isn’t?
• What’s an allowance versus a fixed cost?
• Who manages the project day to day?
• How are changes handled?
• Are permits and inspections included?

Good contractors welcome these questions.

Final Thoughts

Price differences aren’t random, they reflect differences in scope, quality, process, and risk.

Understanding why bids vary allows you to make decisions based on value, not just numbers.

If you’re comparing estimates and want help understanding what’s actually included, without pressure, we’re happy to walk through it with you.

👉 Request a Consultation