Homeowner Guide · San Francisco
How to Read a San Francisco Contractor's Bid
By Solid Bay Construction SF | Updated 2026
Two bids for the "same" kitchen remodel can differ by tens of thousands of dollars — and the gap usually isn't about who's better at construction. It's about what's actually included in the number. Here's how to actually read a bid before you sign anything.
What a Legitimate Bid Should Include
- Detailed scope of work: A room-by-room or trade-by-trade breakdown, not a single lump-sum line
- Material allowances: Specific dollar allowances for fixtures, tile, countertops, and appliances — so you know exactly what finish level is priced in
- Permit responsibility: A clear statement of whether permit fees and the permit application process are included in the price or billed separately
- Payment schedule tied to milestones: Draws released as specific phases complete, not on a calendar schedule unrelated to progress
- License number and insurance certificates: A CSLB license number and proof of general liability and workers' compensation insurance
- Change order process: How unexpected conditions or scope changes get priced and approved mid-project
Red Flags in a Bid
- A single number with no breakdown: If you can't tell what's driving the cost, you can't compare it to another bid or negotiate it intelligently
- A large upfront deposit: California law caps the initial deposit at 10% of the contract price or $1,000, whichever is less, for most residential contracts — a request for significantly more is a legal violation, not just aggressive
- No license number listed: Verify any CSLB number at cslb.ca.gov before signing anything — an unlicensed contractor voids most of the legal protections you'd otherwise have
- Pressure to sign immediately: A legitimate bid should hold for at least a reasonable review period; urgency tactics are a classic sign of a bid that won't survive scrutiny
- Vague material specifications: "Quality tile" or "standard fixtures" without brand, model, or an allowance dollar figure leaves the finish level entirely undefined
Comparing Bids Apples-to-Apples
Before comparing the bottom-line numbers on two or three bids, normalize them first:
- Confirm each bid covers the identical scope — the same square footage, same rooms, same structural work
- Check whether permit fees and expediting are included or separate in each bid
- Compare material allowances line by line, not just the total — a lower total with a lower tile allowance isn't actually cheaper if you'd choose the same tile either way
- Ask each contractor for the same three professional references and actually call them
A bid that's 20% lower than the others is worth a hard second look at what's missing, not an automatic win. See our fixed-price vs. cost-plus comparison for how the pricing structure itself changes what "lower" even means.
Questions to Ask Before You Sign
- What happens if we find unpermitted work, asbestos, or structural issues once we open the walls?
- Who pulls the permits, and is expediting included?
- What's the payment schedule, and what triggers each draw?
- Who is my day-to-day point of contact once construction starts?
- What's the warranty on workmanship, and for how long?
Frequently Asked Questions
Why do bids from different SF contractors vary so much for the same project?
Usually because the bids don't cover the same scope, even if the headline number looks comparable. Always request a detailed, line-itemized scope before comparing price alone.
How big a deposit is reasonable for a San Francisco contractor to ask for?
California law caps the initial deposit at 10% of the contract price or $1,000, whichever is less, for most home improvement contracts. A request for more is a legal red flag.