You ask three companies to quote the same job and get back three numbers that are nowhere near each other. That's normal, and it usually isn't because one of them is dishonest. Most of the time the quotes differ because they're quoting different jobs. Here's how to make them comparable so you can choose on value, not just price.
1. Write down the scope before you call anyone
Describe the job the same way to every company. A few sentences is enough:
- What's wrong or what you want done
- Relevant details: size, age, brand or model of existing equipment, location in the house
- What must be included, such as haul-away of the old unit, permits and cleanup
- When you need it done
Send or read the same description to each contractor. When quotes come back, you'll immediately see who added or left out items.
2. Ask for itemized quotes, in writing
A single lump sum can't be compared. Ask each company to break out:
- Parts or equipment, with the brand and model
- Labor
- Permits and inspection fees
- Disposal or haul-away
- Any additional materials, such as fittings, a pan, an expansion tank or venting
3. Put the quotes side by side
A simple table makes the differences obvious. Use rows like these:
| Item | Quote A | Quote B | Quote C |
|---|---|---|---|
| Total price | $1,150 | $1,480 | $2,300 |
| Equipment | 40-gal, 6-yr warranty | 50-gal, 9-yr warranty | 50-gal, 12-yr warranty |
| Permit included | No | Yes | Yes |
| Expansion tank / code items | Not mentioned | Included | Included |
| Haul-away | Extra $75 | Included | Included |
| Labor warranty | 30 days | 1 year | 2 years |
| Licensed & insured (verified) | Yes | Yes | Yes |
4. Worked example: three water heater quotes
Take the three quotes above for replacing a tank water heater. At first glance, Quote A looks like the obvious choice at less than half the price of Quote C. On the table, though:
- Quote A is for a smaller tank, doesn't include the permit, doesn't mention code-required items, and charges extra for haul-away. Add a permit (often $50–$200 depending on the city), the haul-away and a likely expansion tank, and the real price is closer to $1,400. You'd also get a smaller heater with a shorter warranty.
- Quote B includes everything, with a mid-grade unit and a one-year labor warranty. It falls inside the typical range from our plumbing cost calculator for a standard tank replacement.
- Quote C is a premium unit with a longer warranty. It's not a rip-off, just a different product. It could make sense if you plan to stay in the house a long time.
For most homeowners, Quote B is the best value here, even though it isn't the cheapest.
5. Compare the things that aren't on the price line
- License and insurance. Verify both. Our license and insurance guide explains how.
- Payment schedule. Be wary of large upfront deposits, and pay by credit card where possible for dispute protection.
- Timeline. Find out when they can start and how long the job takes.
- Communication. Did they answer questions clearly? Did they look at the job in person or quote over the phone? How a company quotes is a preview of how it works.
- Reviews. Read recent reviews for patterns rather than single complaints. Look at how the company responds to bad reviews.
6. Use the gaps to ask better questions
Once you see the differences, go back to the contractors. "Company B included a permit and expansion tank. Does your price include those?" This isn't haggling. It's making sure you understand what you're buying, and it often leads a contractor to revise the quote.
When the lowest quote is fine
Sometimes the cheapest quote really is the best one. The company may be smaller with lower overhead, or simply want the work. If the low quote includes the same scope, the contractor is licensed and insured, and the warranty is comparable, take it.
When a quote is suspiciously low
A quote far below the others and far below the typical range deserves scrutiny. Common explanations include an unlicensed contractor, skipped permits, a cheaper part than you asked for, or a bait price that grows once work starts. That last one is a well-known tactic in garage door repair, covered in our guide to garage door repair scams.
Frequently asked questions
Should I tell contractors I'm getting other quotes?
Yes. It's normal, and it tends to produce sharper, more complete quotes.
Is it OK to ask one contractor to match another's price?
You can ask, but make sure the scopes truly match first. A price match on a smaller scope isn't a deal.
Does this apply to business services too?
Yes. For commercial cleaning bids, a written scope of work listing tasks and frequency by area is the equivalent of the itemized quote. See our commercial cleaning cost calculator for typical rates.