The lowest bid on bid day is rarely the lowest final cost at certificate of occupancy. Savvy project owners level commercial contractor bids by systematically comparing General Conditions, scope inclusions, allowance assumptions, and contract exclusions.
The 4 Critical Traps to Inspect on Contractor Bids
- Unrealistic Allowances: A contractor bidding $2.50/SF for commercial flooring when specifications clearly dictate $6.00/SF luxury vinyl tile is artificially suppressing their base bid. Once the contract is signed, that $3.50/SF variance becomes a mandatory change order.
- Hidden Civil Exclusions: Bids that exclude "rock excavation," "soil import/export," or "dewatering" can expose an owner to six-figure contingency losses during mass grading.
- General Conditions Line Items: Inspect project supervision: does the bid include a full-time, dedicated on-site superintendent, or is the superintendent split between multiple jobsites?
- Builder Risk & City Fees: Verify whether building permit fees, municipal tap fees, water meter installations, and builder risk insurance are included in the base proposal or listed as owner costs.