Three bids come back for the same project, and the totals are $18,000, $26,000, and $31,000. The obvious move is to take the lowest. The problem is that the three contractors almost never priced the same job.
We see this constantly. One bid includes debris removal and a two-year warranty. Another excludes permits and assumes the association supplies materials. The third quotes premium materials nobody asked for. A board that compares totals is comparing three different projects.
Here's how to compare bids properly.
Step 1: Write the scope before you ask for bids
The best way to get comparable bids is to give every contractor the same written scope. At a minimum it should state:
- The work. What is being repaired or replaced, and where.
- Quantities. Square footage, linear feet, number of units. If contractors measure on their own, you'll get different numbers.
- Materials. Product type and grade, or an "or equal" standard.
- Site conditions. Access, working hours, parking, protecting landscaping and residents' property.
- Cleanup and disposal. Who hauls debris and how often.
- Schedule. When work can start and when it must be finished.
If you've already received bids without a written scope, you can still compare them. It just takes more work to normalize them.
Step 2: Build a side-by-side comparison
Put every bid in one table, with a row for each item that matters. A simple version:
| Item | Contractor A | Contractor B | Contractor C |
|---|---|---|---|
| Total price | $18,000 | $26,000 | $31,000 |
| Scope matches spec? | Partial | Yes | Yes, plus extras |
| Quantities used | Not stated | 4,200 sq ft | 4,500 sq ft |
| Materials | Unspecified | As specified | Upgraded grade |
| Permits included | No | Yes | Yes |
| Debris removal | Excluded | Included | Included |
| Labor warranty | 90 days | 2 years | 1 year |
| Start / duration | 6 weeks / 2 weeks | 3 weeks / 3 weeks | 8 weeks / 2 weeks |
| Payment terms | 50% up front | 30/40/30 | 10% deposit |
Once the bids are laid out like this, the $18,000 bid usually stops looking like the best deal.
Step 3: Read the exclusions
The exclusions section is where most of the price difference hides. Look for:
- Permits and inspection fees
- Debris removal and dumpster costs
- Repairs to "unforeseen conditions" such as rotted framing found under siding or decking
- Landscaping or hardscape restoration
- Work by subcontractors (electrical, plumbing) that's priced separately
For every exclusion, estimate what it would cost to add back. That gives you a true, comparable total.
Step 4: Check the contractor, not just the bid
- License. Georgia requires a state license for many residential and general contracting jobs. Verify it through the Georgia Secretary of State's professional licensing lookup.
- Insurance. Ask for certificates of general liability and workers' compensation insurance, with the association named as certificate holder.
- References. Ask for two or three recent jobs of similar size, ideally for other community associations.
- Change order pricing. How will extra work be priced? A fair bid states its unit prices or hourly rates up front.
Step 5: Watch the payment schedule
A large up-front payment shifts the risk to the association. Payments tied to completed milestones protect you. Be cautious with any contractor who wants half or more before work starts, except where the deposit covers special-order materials.
Step 6: Document the decision
Whatever the board decides, record why in the minutes: the bids received, how they were compared, and the reasons for the choice. If a homeowner later asks why the board didn't take the lowest bid, the answer is already on file.
When to bring in help
For routine work, a board can do this comparison itself. For larger or technical projects such as roofing, paving, structural repairs, or anything requiring engineering judgment, an independent review usually pays for itself. A reviewer who is paid by the association, not the contractor, can catch scope gaps before they become change orders.
This guide is general information, not legal advice. Have your association's attorney review construction contracts before signing.