Contractor Bid Review Checklist: What to Check Before You Sign
A contractor bid review checklist should verify license status, scope of work, materials, allowances, exclusions, permits, payment schedule, timeline, warranty, insurance, change-order rules, and math before you sign.
What Should Be Included in a Contractor Bid Review Checklist?
A contractor bid review checklist should confirm the bid is specific enough to price, compare, sign, and enforce.
If the bid cannot answer “what work, what materials, what price, what schedule, and what happens if something changes,” it is not ready. New York City’s home improvement contractor checklist requires written contracts to include contractor identity, license number, dates, work description, material descriptions, payment schedule, warranties, and permit responsibility.
The 12-Point Contractor Bid Review Checklist
Use this table before signing. Any “no” answer needs a revision or written clarification.
| # | Checklist item | Pass/fail question |
|---|---|---|
| 1 | Contractor identity | Does the bid show legal business name, address, phone, and license number? |
| 2 | License status | Is the license active and appropriate for the work? |
| 3 | Insurance | Are general liability and workers’ compensation documented? |
| 4 | Scope of work | Does the bid list the actual work by phase or trade? |
| 5 | Materials | Are brands, models, grades, or finish levels named? |
| 6 | Allowances | Are placeholder amounts specific and realistic? |
| 7 | Exclusions | Does the bid say what is not included? |
| 8 | Permits | Does it say who pulls, manages, and pays for permits? |
| 9 | Timeline | Are start date, completion date, and milestones listed? |
| 10 | Payment schedule | Are payments tied to completed work? |
| 11 | Change orders | Must changes be approved in writing with price and schedule impact? |
| 12 | Math | Do line items, subtotals, allowances, and total reconcile? |
1. Contractor Identity and License
Start with legal name, license number, address, and contact information. A printed license number is not enough.
Verify the license through the state or local licensing database. If the number is missing, ask why before you review price.
2. Scope of Work
The scope of work is the heart of the bid. It should list what the contractor is actually doing, not just the room being remodeled.
For a bathroom, scope may include demolition, debris removal, rough plumbing, rough electrical, framing repair, waterproofing, tile prep, tile installation, fixtures, ventilation, painting, and cleanup.
3. Materials and Finish Assumptions
Materials should be specific enough to prevent disputes. Weak material wording makes bids hard to compare.
Weak wording: “install cabinets,” “standard tile,” “new faucet,” or “builder-grade fixtures.”
Better wording: “install 12 linear feet of semi-custom shaker cabinets” or “install 120 square feet of porcelain floor tile, owner-selected up to $6/sf material allowance.”
4. Allowances
Allowances should be itemized, realistic, and tied to specific categories. A single finish allowance is usually too vague.
| Category | Allowance | Includes | Excludes |
|---|---|---|---|
| Tile material | $2,400 | Floor and shower wall tile | Installation labor |
| Plumbing fixtures | $1,800 | Toilet, faucet, shower trim | Delivery, accessories |
| Lighting | $900 | Vanity light and ceiling fixtures | Electrical rough-in |
5. Exclusions
Every bid should say what is not included. Exclusions are not automatically bad; hidden exclusions are.
Common exclusions include permits, engineering, hidden rot, mold, asbestos, utility upgrades, appliance purchase, landscaping repair, HOA approvals, and temporary housing.
6. Permits and Inspections
The bid should say who pulls permits, pays fees, schedules inspections, and handles corrections.
If the contractor says the owner should pull permits, pause and verify the implications. Some owner-builder arrangements shift responsibility and liability to the property owner.
7. Payment Schedule
Payment should track completed work. Travelers recommends written contracts with price, payment schedule, estimated dates, guarantees, and work descriptions.
Prefer deposit, demolition milestone, rough-in inspection milestone, drywall or waterproofing milestone, finish installation milestone, and final payment after punch list.
8. Change-Order Rules
Change orders should be in writing before extra work starts. The NYC checklist says change orders should be written and signed by both contractor and consumer.
Your bid should say who can authorize changes, whether approval must be written, how labor is priced, what markup applies, and how schedule changes are handled.
9. Math Audit
Before signing, recalculate the bid. Math errors can hide inside clean-looking proposals.
Check quantity times unit price, trade subtotals, allowance subtotals, overhead and profit, taxes, credits, alternates, grand total, and payment schedule total.
Should I Sign a Contractor Bid With Missing Details?
No. Ask for revisions first. Missing details create room for change orders, disputes, and price surprises.
Is a Low Contractor Bid a Red Flag?
Sometimes. A low bid may be efficient, but it may also be missing permits, materials, cleanup, supervision, or hidden-condition assumptions.
What Is the Most Important Part of a Contractor Bid?
The scope of work. Price only matters after the scope is clear enough to compare.
Can CostCheckGPT Review My Contractor Bid Checklist?
Yes. CostCheckGPT reviews bids for missing scope, math errors, allowance risks, license issues, and negotiation points before you approve the proposal.
Sources
NYC Department of Consumer and Worker Protection - https://www.nyc.gov/assets/dca/downloads/pdf/businesses/DCAInspectionChecklist_HomeImprovement.pdf
Travelers - https://www.travelers.com/resources/home/renovation/checklist-for-hiring-the-right-contractor