How should I compare contractors and construction bids?

Do not begin with a ranking or the lowest total. Begin by identifying the legal entity that would sign the contract, checking that entity in the official CSLB license lookup, and putting every proposal into the same scope structure. A useful comparison makes included work, allowances, exclusions, permit responsibility, site and utility work, payment milestones, change procedures and unresolved conditions visible. RSA’s license status is not stated on this website; verify any proposed RSA contracting entity and license number directly in the CSLB record before signing.

1. Identify and verify the contracting entity

Ask each bidder for the exact legal business name and CSLB license number that will appear on the contract. Search by license number and confirm the record belongs to that entity, is currently active, and lists classifications relevant to the work proposed. A classification describes the contracting scope the licensee is authorized to undertake; it is not a statement that the contractor is qualified for every condition on your property. If a home-improvement salesperson is involved, verify that person’s registration as well.

2. Read the public record without overreading it

Review the license status, classifications, bond information, workers’ compensation information and public complaint disclosures linked from the CSLB record. CSLB warns that complaint disclosure is restricted by law and its database may not yet contain all relevant information. A license bond is not project insurance or a guarantee of recovery. CSLB does not require commercial general-liability insurance for most licensed contractors. Ask for current insurance documents for the proposed entity and project, then confirm coverage questions with the insurer or your own adviser rather than treating a certificate or database field as a coverage opinion.

3. Normalize the scope before looking at totals

Put each proposal into the same categories: design and consultants; permits and agency coordination; demolition and site protection; foundation and structure; enclosure; mechanical, electrical and plumbing systems; finishes and equipment; utilities; closeout; restoration; and contingency. Mark each line included, allowance, excluded or unknown. Use the cost pillar to expose missing categories, the financing calculator to test only your own funding assumptions, and the permit directory to identify the responsible authority without relying on a postal city.

4. Compare responsibility, not just materials

• —Who prepares and coordinates drawings, engineering, energy documents and agency corrections?
• —Who applies for and picks up permits, pays agency charges and schedules inspections?
• —Who investigates utility capacity, sewer, soils, existing construction, access and hazardous materials?
• —Which selections are allowances, what amount is included, and how are credits, overages and markup handled?
• —Which owner-supplied items or third-party scopes must be coordinated, stored, protected or installed?
• —What must occur before a payment milestone is earned, and what documents show that milestone is complete?

5. Read the contract and change process together

CSLB’s consumer guidance says a home-improvement contract over the statutory threshold must be in writing and include required identifying, scope, price, payment, schedule and notice information. California limits the down payment in a home-improvement contract to $1,000 or 10 percent of the contract price, whichever is less, and CSLB says payments cannot exceed the value of work performed or materials delivered, except for the down payment. Scope or price changes must be documented in a written change order signed before the changed work begins. Exceptions and project-specific application can matter, so use the official guide and obtain legal advice for the actual agreement.

6. Check references against the same questions

Ask references about a comparable scope and property condition, then ask how the written scope matched the work, how unknowns and corrections were documented, whether payment requests matched described milestones, how changes were approved, how the site was protected, and what remained at closeout. References are one input; they do not replace license, contract, insurance, permit or property-specific review.

The Project Studio proposal comparison applies this worksheet to up to three bids: mark each scope row included, allowance, excluded or unknown, and it generates the questions to send each bidder. Entries stay in your browser tab unless you include them in an inquiry.