Two bids for the same bathroom can differ by thousands of dollars and still describe the same job. Here is how to line them up and pick on substance, not the total.
Licensing, permit, lien and tax rules vary by state and city and change over time. This guide is general information, not legal or tax advice; check with your local building department, state licensing board or a professional for your situation.
Checklist
- A typical bathroom remodel in the United States runs about $16,000, so a bid far below that usually means missing work or future change orders.
- Get at least three bids and compare them line by line, making sure each contractor priced the same scope.
- Low allowances make a bid look cheaper but often turn into overruns once you pick real tile and fixtures.
- Deposit rules vary by state; in Maryland, a contractor’s upfront payment cannot exceed a third of the contract price.
- Check licenses, insurance and references on your shortlist before you compare final prices.
A stack of bathroom remodel bids can span thousands of dollars, and the totals alone will not tell you which one is actually best. A typical bathroom remodel in the United States runs about $16,000 once labor, materials, overhead and profit are counted, so a bid far below that deserves questions, not a signature. This guide walks through how to compare bids on scope, allowances and payment terms before you commit to a contractor.
Why the Lowest Bid Is Rarely the Whole Story
It helps to know what goes into a contractor’s number. Contractors commonly mark up materials 10 to 20 percent to cover mistakes, and their prices also carry back-end costs like office staff, insurance, advertising and vehicles that never appear as line items.
Labor adds up fast, too. The average construction worker earns about $20 an hour, so a two-week job with three employees working 50 hours a week means 240 hours of regular pay plus 60 overtime hours at time and a half. That is roughly $6,600 in wages alone. Add $4,000 in typical materials, and the job costs more than $10,000 before overhead or profit shows up.
That math explains why a $9,000 bid for a full remodel is a warning sign. Either corners get cut, or the missing money comes back later as change orders. A bid that looks cheap on day one can end up the most expensive by the time the bathroom is finished.
Compare Scope, Not Just Price
Get at least three bids, then make sure each contractor actually priced the same project. Build a simple list of the major work categories, demolition, plumbing, electrical, tile, waterproofing, painting, disposal and cleanup, and check off what each bid covers. A lower total often just means less work was priced.
Read the descriptions, not just the headings. A line that says “install new bathroom” is a red flag. You want specifics like “demolish existing vanity and toilet” or “install 80 square feet of floor tile.” Vague language is where disputes start.
The bid should also give you a timeline. Maryland requires home improvement contracts to state approximate start and substantial completion dates, and any bid worth taking should tell you both no matter where you live. For everything the final agreement needs to contain, see what a home improvement contract should say.
Checking the Allowances Behind Each Number
An allowance is a placeholder dollar amount for items you have not picked yet, such as tile, a vanity or faucets. It is one of the most common places a bid hides risk. A low allowance makes the starting price look attractive, then sets up an overrun when your actual selections cost more.
Compare allowance amounts across all your bids and ask whether each one is realistic. Price out the tile and fixtures you actually want, then check whether the allowance would cover them. If two bids have very different allowances, adjust for that difference before you weigh the totals.
Tip
Ask each contractor to list every allowance separately with its dollar amount and what it covers. A bid with no allowances either means every product is already specified, which is good, or the contractor guessed, which is not.
Fixtures and Materials: Who Supplies What
Some contractors supply everything. Others let you buy your own fixtures and pay only for installation. Buying items yourself can save the contractor’s markup, which commonly runs 10 to 20 percent on materials, but you take on the trade-offs: delivery timing, returns and warranty claims land on you. Ask in advance who pays if a special-order vanity arrives damaged, and who stores materials during the job.
Read each bid’s exclusions line by line. Waterproofing, permit fees, disposal and cleanup are the items most often left out. A bid that excludes major work is not cheaper. It is incomplete, and the missing pieces usually come back as extra charges.
Payment Schedule, Deposits and Your State’s Limits
Deposit rules vary by state, so check with your own state licensing or consumer agency before you hand over money. Maryland shows what regulation can look like: a contractor there cannot ask for a deposit larger than a third of the contract price, cannot collect any money before the contract is signed, and has to hand you a signed copy before work begins.
Beyond the deposit, tie payments to completed stages of work rather than calendar dates. Paying ahead of the work is what leaves homeowners exposed. Hold back a meaningful final payment until the punch list, the small remaining items like touch-up paint or a loose towel bar, is done.
Also understand your protection if the contractor fails to pay subcontractors or suppliers. On some projects they can file a claim against your home, so read up on mechanic’s liens and lien waivers before the first progress payment.
Verifying License, Insurance and References on Your Shortlist
Licensing requirements vary by state and by trade, and many states let you look up a contractor’s license online in minutes. Do it before you compare prices, because a great number from an unlicensed contractor is not a real option.
Ask each finalist for proof of general liability insurance and workers’ compensation coverage, then call two or three references from jobs similar in size to yours. Pay attention to how each contractor communicates during bidding. Slow answers and vague explanations before you sign only get worse once money has changed hands.
Using a Bid Comparison Sheet Before You Decide
A simple sheet turns three confusing proposals into one picture. Set up columns for each bid and fill in these rows:
| Row to fill in | What you want to see |
|---|---|
| Work categories | Demolition, plumbing, electrical, tile, waterproofing, painting, cleanup all listed separately |
| Exclusions | Stated plainly, not buried in fine print |
| Allowances | Amount and what each covers, for tile, vanity and fixtures |
| Schedule | Approximate start and completion dates |
| Payment terms | Deposit amount and each progress payment trigger |
| License and insurance | Numbers you have independently verified |
| Total price | Filled in last, after every row above |
Only after the scope matches, the allowances are realistic and the qualifications check out should you compare price. At that point, a slightly higher bid from a contractor who answered every question clearly is usually the better deal than a lower one you cannot pin down.
Keep reading
- How to check a contractor’s license: verify credentials in your state before any bid makes your shortlist.
- Remodeling cost terms to know before you get bids: the vocabulary contractors use, decoded before you negotiate.
- When a contractor job goes wrong: what to do if the project you signed turns into a dispute.
Homeowners ask
How many bathroom remodel bids should I get?
Get at least three. That gives you a low, a middle and a high number, shows you what the work should cost, and lets you compare how each contractor communicates.
Why is one bid so much lower than the others?
It often means the contractor left out work, used a low allowance for fixtures you will exceed, or plans to recover the difference through change orders. Ask what is excluded before assuming it is a bargain.
How much should I budget for a bathroom remodel?
A common guideline is 5 to 10 percent of your home’s value, and a typical U.S. bathroom remodel costs about $16,000 once labor, materials, overhead and profit are included.
How large a deposit is normal?
It depends on where you live. Some states cap what a contractor can ask for up front; in Maryland, a contractor cannot collect more than a third of the job total before work begins. Check with your state consumer affairs or licensing agency before you pay anything.