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How to Read a Contractor Estimate (and Spot Red Flags)
Line items to demand, ambiguity to reject, and the three phrases that reliably signal overcharging.
BuildMate Editorial Updated March 2026 7 min read
A good estimate always includes
- Line-item materials with brand and model numbers
- Labor hours or crew-day estimates, not lump sums
- Named subcontractors (electrical, plumbing, HVAC)
- Allowances (fixtures, tile, appliances) with dollar caps
- Written exclusions (what's NOT in the price)
- Payment schedule tied to milestones
- Change-order process and unit rates
Three phrases that scream 'markup'
- 'To be determined based on site conditions' — get a range
- 'Homeowner's choice, TBD' — force an allowance
- 'Standard' materials without brand — force a spec
The 3-bid rule
Get exactly 3 bids. Two is too few to spot outliers, four wastes contractor time. Compare line-by-line — the middle bid isn't automatically right, but a bid 30%+ below the others is either missing scope or a bait price.