So you’ve gotten several bids for your project, but how can you find the right combination of price, quality, and qualifications? We’ve put together this guide for what to think about when comparing bids in order to select the right general contractor for your commercial construction project.
Professional drawings and specifications do not guarantee that every bidder will deliver the same result. Drawings describe the design. They do not describe how much supervision the job gets, which trades will do the work, what is assumed about existing conditions, or what has been left out of the price. The more complex the project, the more room there is for two bids on the same plans to describe two different projects. When the contractor is involved during design, as in design-build, many of those questions are answered before bidding, so the owner and architect know sooner whether the design fits the budget.
Why A Low Bid Deserves a Closer Look
A low bid is a reason to ask questions, not a verdict. The gap between bids usually comes from somewhere: a scope item one bidder included and another left out, a different assumption about existing conditions, thinner supervision, or a lower allowance for something that will cost more once it is specified. Any of those can show up later as a change order. A low number also tells you nothing about how a contractor communicates, how they run a jobsite, or how they handle a problem when one comes up, and those are the things you will live with for the length of the project.
How We Build Our Own Bids
We build our proposals so an owner can compare them line by line. Each proposal is organized by CSI division, with a written scope description and a dollar amount on every line, a list of exclusions, and optional scope priced separately as add alternates. If something is not in the price, the proposal says so in writing. We also walk clients through the numbers and the alternatives at each phase, so changes to the budget are discussed before they happen.
Comparing Bids
Put the bids side by side and look at what each one actually covers. First, confirm that every bidder is pricing the same scope, including the same finishes, the same assumptions about existing conditions, and the same exclusions. Next, compare the insurance each contractor carries. Ask how much of the superintendent’s or project manager’s time your job will get, and how the contractor selects and pays its subcontractors. We pay ours within 30 days, and sooner once the owner’s payment comes in, because trades tend to give their best scheduling to the contractors who pay on time. Ask how likely change orders are and what usually drives them. Then check each contractor’s license and complaint history with the Arizona Registrar of Contractors at roc.az.gov. Finally, weigh the value each contractor offers against the price, not the price alone.
When a bid is low because something was left out, the cost does not disappear. It comes back as a change order, a delay while the missing item is priced and approved, or a dispute about what the contract covered. When a bid is low because the contractor is stretching to win the job, the pressure can show up as thinner supervision, slower payment to subcontractors, and pushback on every change. On a project tied to a lease or an opening date, a late finish can cost more in rent and lost revenue than the difference between the bids.
What a Realistic Bid Looks Like
A realistic bid gives you an honest picture of the cost before construction starts. It lists what is included and what is not, flags the decisions the owner still has to make, and leaves room for alternates so you can adjust scope without starting over. That gives the project its best chance of finishing within budget and schedule, and it sets up a better working relationship, because a contractor who prices the job honestly is more likely to tell you early when something changes. After the work is done, we warrant it for 12 months from the date the city issues the certificate of completion, and we stay your point of contact for every warranty call.
Conclusion
The lowest bid can save money at signing and cost more by closeout. A better question is which contractor’s number you can rely on, and what you get for any difference. If you are comparing bids on a commercial tenant improvement in the Phoenix area, we are glad to talk through your scope and show you how we build ours. Request a bid at emeraldinc.biz/request-quote or call us at 480-832-9808.
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