How To Tell a Contractor Their Price Is Too High After Receiving a Bid

Getting quotes from potential contractors can be exciting and a bit nerve-racking. And when you’re quoted a price for a project that you think is way too high, that excitement can quickly turn into fear, nervousness, or even irritation. 

If you’re wondering how to tell a contractor their price is too high, don’t fret. There’s a way to politely (but firmly) let them know that their price doesn’t feel right with your wallet. Follow these five quick steps to learn how to respond to the quote and hire a general contractor near you.

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1. Review All the Details

When you receive a contractor quote, look over every detail. The quote should include the scope of the project and cost estimate. In many cases, a contractor will come to your house to see the project in person—free of charge. Many contractors don’t give quotes over the phone since it’s nearly impossible to provide a reasonable quote without fully assessing the project. 

The more detail the quote has, the easier it is to ensure you're on the same page as the contractor about what's covered. Is one estimate higher than the rest when comparing multiple contractors? Do the quotes include electrical work, painting, and flooring? How about insulation and HVAC? You don't want to get in the middle of the project and realize the quote was missing a considerable expense, which can instantly drive the project's cost higher than expected.

2. Ask Questions

If anything is unclear about the quote, now's the time to get your questions answered. Assuming details will work themselves out later can lead to problems (and unforeseen costs).

Here are some questions to ask your general contractor about their quote:

• Will you do all the work yourself or hire subcontractors? Does the cost estimate include all subcontractors?

• What all is included in your quote?

• What is the payment schedule?

• Will you be pulling permits for the work and does your price include that?

Don’t make assumptions about what's covered: ask and clarify. You want to be confident before signing anything.

If a contractor’s quote is far above your budget, ask questions about why the price is so high. In the end, you don’t have to accept a bid that’s beyond your budget. You may need to find a different contractor or adjust the scope of your project.

3. Negotiate

When thinking about how to tell a contractor their price is too high, you might need to be tactful. Sometimes, you can negotiate on a quote, but not always. For instance, you might point out that your driveway is shorter than most driveways, so you can ask if they can lower the rate. Or you might ask for a lower price per window if you install several at once. 

But be prepared for the contractor not to budge on their bid, especially with the current demand for quality licensed contractors. 

4. Make Adjustments to Fit Your Budget

After getting a few quotes for your project, you might realize that you need to adjust your project specifications to fit your budget. You might decide to forgo the Italian tile or skip the pot filler above your new stove. As you make adjustments, a new quote should reflect those changes and price differences, too.

As always, having an open and honest conversation with your contractor about the changes is vital to completing your project without hiccups, and when asked if there’s a reason for the change, you can simply let them know that their original quote was higher than what you were expecting.

5. Politely Decline

It’s perfectly OK—and normal—to decline quotes from contractors if their bid is too high. In fact, contractors are used to it. You can politely decline a quote from a contractor by texting, emailing, or calling—whatever makes you feel most comfortable. 

Try a two-sentence note when responding to an estimate such as, "Thanks for your quote and for taking the time to look at our project. We decided to go with a different bid." Yes, it can be that short and easy. Or, if you’re looking to work with a specific contractor but their bid is too high, you can say something like, “We’d like to work with you on our project, but the price is higher than we expected. Can we discuss the aspects of this?”.  

In the end, it's important to find the best contractor for your remodel project and feel confident about what you're paying. You can always contact more contractors if you don't feel good about the first three contractor quotes you receive.

Bonus Tip: It Pays To Be Nice

It’s not uncommon to have a set price in mind for a home improvement project, both for your budget and what you think the job will cost. And if your contractor comes in with a quote way higher than your original thought, it might bring up some strong feelings. It’s always best to respond to quotes you think are too high with politeness and respect. 

Take time to ask questions, but do so in a non-confrontational manner. Try to understand upfront that there might be problems outside of the contractor’s control (like supply chain issues) that make materials more expensive than they were in the past. But most importantly, remember that your potential contractor is only human and is trying their best to make your home improvement dream a reality.