Contractor Budget Kit
Guides
Browse tools

GENERAL CONTRACTOR

Subcontractor Bid Comparison Calculator

Two subcontractor bids rarely differ only in price. The lowest number can become the most expensive job once management and tax are applied consistently, so compare them on total cost.

JOB INPUTS

Enter your numbers

Loading saved values

Subcontractor A price

$
Subcontractor A price

Subcontractor B price

$
Subcontractor B price

Sales tax applied to both

%
Sales tax applied to both

Coordination overhead on the sub

%
Coordination overhead on the sub
Results update automatically
CALCULATED RESULTUSD
Lower evaluated costB · $46,200.00
Bid A (total cost)$49,500.00
Bid B (total cost)$46,200.00
Difference$3,300.00
FORMULA USED$45,000.00 vs $42,000.00 × (1 + 10.0% management) × (1 + 0.0% tax) → B

HOW TO USE IT

How to use the Subcontractor Bid Comparison Calculator

  1. 1

    Confirm the scope matches: Only compare bids that cover the same scope, exclusions and quality. A lower price with fewer inclusions is not cheaper.

  2. 2

    Apply management and tax evenly: Coordination and sales tax apply to whichever bid you choose. Applying the same percentages keeps the comparison fair.

  3. 3

    Compute the effective total: At $45,000 and $42,000 with 10% management, the totals are $49,500 and $46,200. The $3,300 gap is the real saving.

  4. 4

    Decide on total cost, not price: Use the Subcontractor Bid Comparison Calculator and weigh scope and schedule alongside the number. The cheapest effective total is not always the right sub.

THE MATH

Bid comparison calculation method

Apply the same management and tax percentages to both bids. Bid A $45,000 and Bid B $42,000 with 10% management become $49,500 vs $46,200, so Bid B saves $3,300.

Coordination and sales tax apply to whichever bid you choose. Applying the same percentages keeps the comparison fair.

PRACTICAL EXAMPLE

Worked example for Bid comparison

Apply the same management and tax percentages to both bids. Bid A $45,000 and Bid B $42,000 with 10% management become $49,500 vs $46,200, so Bid B saves $3,300.

FAQ

Frequently asked questions

How do you compare subcontractor bids?

Apply the same management and tax percentages to both bids. Bid A $45,000 and Bid B $42,000 with 10% management become $49,500 vs $46,200, so Bid B saves $3,300.

What should I verify before using the result?

Compare on effective total cost with the same markup applied to both sides.

Is this a final quote or design?

No. Use it as a planning estimate, then confirm measurements, local rates, product requirements, permits and jobsite conditions before bidding or building.