Quick answer
Get written quotes from more than one contractor, compare them line by line and question any quote far below or far above the rest. Ask who pulls the City permit, and do not pay the full price before the work is finished and checked.
Get written quotes from more than one contractor and compare them line by line. A quote far above or far below the others is the one to question.
Inside New Braunfels city limits, also ask who pulls the City permit, and ask the City whether the contractor needs to register. Then agree on a payment plan that keeps the final payment until the work is finished and you have checked it.
How many contractor quotes should you get?
Get at least three written quotes for the same job. The Texas Department of Insurance (TDI) and the Texas Attorney General’s office both tell homeowners to get bids from more than one contractor. Three quotes give you a range to compare.
Ask each contractor when they could start and how long the job would take. Two quotes with the same price and very different start dates are not the same offer, and the timing may matter more to you than a small price gap.
Put every quote in writing. TDI and the Attorney General’s office both say to get written bids. A number written on the back of a business card is not a quote you can compare.
Give every contractor the same job. Walk each one through the same rooms, show the same problem and ask for the same scope, such as “replace the water heater with the same size tank and haul off the old one.” If one contractor talks you into a bigger job, ask the others to quote that version too. Otherwise you are comparing different jobs, and the price gap tells you nothing.
Keep the quotes together with the date you got each one. TDI and the Attorney General’s office both say to keep copies of the papers you agree to, and those papers are what you will point to if a question comes up later.
What should a written contractor quote include?
A useful quote names the company, the work, the materials and the price. TDI and the Attorney General’s office both say the written agreement should list the materials. Ask for that detail, and the rest of the list below, in the quote itself, so the contract has nothing new in it.
Check each quote for these items:
- The company’s name, street address and phone number
- A description of the work, room by room or step by step
- The materials, by type, brand or grade where it matters
- The start date and how long the job will take
- Who pulls the City permit and pays for it
- Cleanup and haul-off of old materials
- The warranty on the work
- The total price, and what is due when
Ask each contractor to name the grade or thickness of the main materials where it matters. Two quotes for “the same” job can differ there. One quote might price a thicker material or a better grade, and another might leave the grade blank.
If a quote lists allowances, ask what each allowance covers, and compare the quotes with the allowances set to the same amounts. If a quote is missing an item from the list, ask the contractor to add it in writing before you compare prices. Ask for every quote by email or on paper, so you and the contractor are looking at the same version.
How do you know if a contractor is overcharging?
Line the quotes up item by item before you look at the totals. A price only tells you something when the quotes cover the same work.
A simple side-by-side sheet makes the gaps easy to see:
| Item | Quote A | Quote B | Quote C |
|---|---|---|---|
| Scope of work matches | Yes or no | Yes or no | Yes or no |
| Materials and grade | |||
| Permit included | |||
| Cleanup and haul-off | |||
| Warranty | |||
| Start date and length | |||
| Payment schedule | |||
| Total price |
When one quote sits well above the others, ask that contractor to walk you through the difference. The higher quote may include work the others left out, such as the permit, a better material or hauling away the old one. If it covers the same written scope at a higher price, ask why before you decide.
Be careful with the lowest quote too. The Attorney General’s office warns about a “low-ball” bid much lower than everyone else’s, and TDI says comparing bids helps you spot offers that may be too good to be true. Check whether the low quote leaves out tasks the others include or names cheaper materials.
Ask each contractor the same questions and write the answers on the quote they belong to:
- Does the quote include the permit, cleanup and haul-off?
- Are the materials the same type and grade as in the other quotes?
- If something unexpected turns up once work starts, how will extra work be priced, and will you see it in writing before it is done?
- What does the warranty cover, and for how long?
A higher price can be fair when it buys more work or a better material and the quote says so. A higher price for the same written scope is the one to push back on.
What should a New Braunfels quote say about permits?
Inside city limits, the quote should say who pulls the City permit and who pays for it. The City of New Braunfels issues building permits for work inside city limits. Ask the contractor to list the permit fee in the quote as its own line, so you can compare it across quotes.
If a contractor tells you a job “doesn’t need a permit,” check with the City before you accept that quote. A quote that skips a permit the job needs is cheaper only on paper.
The City’s general contractor checklist says registration with Building Safety is required to do residential or commercial general contractor work in the city, and it points to section 14-44 of the City code. The City’s homeowner exemption bulletin cites the same section when it lets a homestead owner do certain work without registering as a general contractor. Ask the contractor for the business name it is registered under and for its insurance certificate, and check both before you sign. If the contractor will bring in an electrician, plumber or other trade, ask who that will be and check that company the same way.
For trades the state licenses, such as electricians, check the license with the state agency. The Attorney General’s office tells homeowners to check a licensed worker’s credentials with the licensing agency, and the Texas Department of Licensing and Regulation (TDLR) is the state agency that licenses electricians. The plumber license guide shows how that lookup works for plumbers.
Ask each contractor which permit the job needs and who will apply for it, and write the answer on the quote. A quote that includes the permit and one that leaves it out are not the same price. Once the job starts, ask for the permit number and when the inspections are scheduled, so you can follow the City inspections on your own job.
How should you pay a contractor?
Pay in stages tied to finished work, and keep the final payment until the job is done and you have checked it. TDI says to be wary if a contractor asks for a large or full down payment, and the Attorney General’s office says not to pay in full until the work is complete and you have inspected it.
Put the schedule in the contract, with each payment tied to a part of the job, such as rough-in done or cabinets installed. Before each payment, look at the work and make sure that part is finished.
Ask for a written receipt for each payment, and keep it with the quotes and the contract. They are your record of what was paid and when.
Never sign a contract with blank spaces. TDI and the Attorney General’s office both warn that blanks in a contract can be filled in later. Take the contract home and read it before you sign.
The local pros directory lists home service companies in the area. Run every name you find there through the same quote, permit and payment checks, and for roof work, the roofer guide covers the storm and insurance questions that come with it.
More contractor quote questions
Is an estimate the same as a contract?
Treat any paper you are asked to sign as a possible contract. TDI says to read every document carefully before you sign it, and the Attorney General’s office says not to sign a contract until you have read and understood every word. If a contractor wants a signature on an “estimate,” read it as closely as the final contract.
Will the City inspect the contractor’s work?
Yes. The City’s Building Safety page and its permits page both describe City inspections of permitted construction. Ask your contractor which inspections the job needs and when they are booked.
Should I tell contractors what the other quotes say?
Share the scope you settled on, so every quote covers the same work. You do not need to share the other prices. If one contractor points out work the others missed, add it to the written scope and ask the others to quote it too.
Where do you report a contractor problem?
The Texas Attorney General’s Consumer Protection takes consumer complaints, and TDI points people to the Attorney General for contractor problems such as an offer to waive an insurance deductible. Keep your quotes, contract and payment records to send with the complaint.
