I went on a coaching call recently. A gentleman called and asked me to come over to help him make sense of three interior painting bids he’d received. They ranged from $3,000 to $13,000. The first thing I told him was to get rid of the lowest bid; since I'd already looked around at what needed to be done, and I knew $3,000 wasn't enough. Then I looked at the other two bids and was able to distinguish the difference in the bids (what was included and what wasn't) and choose the one that was right for his project.
So many times people will look at the lowest bid and get way too excited about it without even considering what might not be included that would add extra costs to the job. Let's consider the $3,000 bid was for labor only and didn't include material such as primer, plastic, paint, etc. Depending on the size of the job, this could easily add over $1,000 to the cost.
When looking at bids and comparing them, one with the other, you really have to compare apples to apples so you are making an educated decision when choosing a contractor for your project.
This coaching call resulted in him saving $3,600 because we chose the right bid for his job.