When reviewing construction proposals, most buyers look at one thing first: the bottom-line number.
That’s understandable. At the end of the day, you want to know what your project will cost.
We tell our clients to take a deeper look; because the lowest number is not always the best value.
Sometimes the low bid truly is the best option. More often, however, an unusually low number signals an incomplete bid — one that grows mightily through change orders and unexpected costs during construction.
So how can you tell the difference between a complete bid and an incomplete one?
Here are eight things to look for when reviewing commercial construction proposals.
1. A Clearly Defined Scope of Work
A complete bid should be detailed, specific, and easy to understand.
If a proposal relies heavily on rough numbers or vague allowances, that may indicate the contractor is estimating without doing their research.
For example, a detailed bid might read:
- Landscaping: 60 one-foot dwarf boxwoods in 30 steel-gray planters, including materials, labor, delivery, planting, and taxes. Assumes 30-day lead time and in-stock materials.
An incomplete bid may simply say:
- Landscaping: $30,000
The difference matters. A complete scope outlines exactly what is included, the assumptions being made, and the specifications tied to the project drawings.
2. Clear Exclusions and Clarifications
Every construction proposal should include clarifications and exclusions. These sections help identify risks, assumptions, and responsibilities before work begins.
Clarifications
Clarifications define how certain aspects of the project will be handled. For example:
- “Construction schedule begins upon contract execution and permit issuance.”
This clarification establishes when work officially starts and prevents misunderstandings around schedule expectations.
Exclusions
Exclusions identify items not included in the bid. A common example is hazardous material remediation, and the language might look like this:
- “This proposal excludes handling, removal, or disposal of any hazardous materials existing in the buildings, structures, equipment, or ground areas of the subject site, including underground or above ground tanks, contaminated soil, asbestos, PCB’s, refrigerant substances, or lead-based paints, unless otherwise specified in this proposal.”
This protects both parties from unexpected costs if hidden conditions are discovered during demolition or construction.
A complete bid identifies these risks upfront rather than after the project is underway.
3. Detailed Allowances
In the early stages of a project, owners may not have every finish or fixture selected. That’s normal.
A good contractor accounts for those unknowns with realistic allowances so you can still understand the full project budget.
For example:
- Allowance for luxury-grade flooring at $70 per square yard, including material, delivery, installation, overhead, and taxes.
Well-defined allowances provide transparency and help minimize budget surprises later in the project.
4. Alignment with the Project Plans
The most important question is also the simplest:
Does the bid reflect the actual project plans and specifications?
If contractors are pricing different scopes of work, you are comparing apples to oranges.
The best way to know? Study those plans backwards and forwards and verify that each contractor has included all required scope items before evaluating pricing.
5. General Conditions
Experienced general contractors include the “forgotten” items that are essential to completing the project but may not be specifically called out in the drawings.
These general conditions can include:
- Temporary facilities
- Site protection
- Safety equipment
- Dumpsters
- Equipment rentals
- Temporary utilities
These costs are real. If they are missing from a bid, they may appear later as added expenses.
6. Existing Conditions and Site Verification
A complete bid is based on more than drawings alone.
Strong contractors review as-built documents, visit the site, and verify existing conditions before finalizing pricing.
In many projects, field conditions differ from both the plans and the as-built drawings.
For example, we recently encountered a project where plumbing had been relocated after the original as-builts were created, resulting in conflicts with the new design documents.
Site visits – often performed with key subcontractors – help uncover these issues early and improve pricing accuracy.
7. Scheduling and Lead Times
Time impacts cost in construction.
If a project requires an accelerated schedule, overtime or additional manpower may be necessary. A complete bid should acknowledge those impacts and include a realistic timeline with key milestones.
It should also identify potential lead-time concerns.
For example, if specified cabinetry carries a nine-month lead time, the contractor should communicate that immediately so adjustments can be made before the schedule is affected.
Incomplete bids often overlook schedule risks entirely, leading to delays and additional costs later in the project. You want to keep the project momentum going.
8. Ask for Bid Alternates
One of the best ways to improve value is to request bidder-suggested alternates.
This gives contractors the opportunity to recommend cost-saving alternatives while maintaining the project’s overall intent and performance requirements.
For example, there may be opportunities to substitute materials, fixtures, or equipment that reduce cost without compromising quality.
Be clear about which items are flexible and which must remain unchanged due to brand standards, tenant requirements, or design intent.
Final Thoughts: Is It Really a Complete Bid?
At the end of the day, the question is simple:
Can this contractor truly deliver the project for the amount listed in the proposal?
Or will the project cost increase significantly through change orders and missing scope items?
The best way to create an apples-to-apples comparison is to provide all bidders with a standardized bid template and clear project information. Consistent formatting makes it much easier to identify gaps, exclusions, and pricing differences. Here are some tips that will help you solicit and evaluate bids from commercial general contractors.
If you are new to commercial construction, consider having an experienced industry professional help review proposals before making a decision. A trained eye can often identify risks and omissions that are easy to miss.
