Luxemcore Insights • Contractor Education
How to Compare Two Construction Quotations Properly
We sometimes receive the question: “Bakit mas mahal itong quotation kaysa sa isa?” Before we answer, we usually ask to see whether the two contractors are actually pricing the same work.
Compare construction quotations line by line, not grand total versus grand total. Normalize the drawings, quantities, material specifications, finish allowances, exclusions, taxes and external works before deciding which bid is truly lower.
A ₱300,000 or ₱500,000 gap can look huge until you discover that one quotation includes cabinets, waterproofing, electrical fixtures or site work that the other contractor placed outside the price.
Our first move is to make the two quotations speak the same language
We put both bids against the same drawing revision and scope. If one contractor priced a newer plan, a different roof system or a larger finish allowance, the totals are not ready to compare yet.
The “small” exclusions that can reverse the cheaper bid
Cabinetry, fence and gate, waterproofing, hauling, temporary facilities, testing, permits assistance, fixtures and VAT can each look secondary. Together they can change the effective project total materially. A low number is only meaningful after those gaps are identified.
Finish allowances deserve their own comparison
Two contractors may both write “tiles included” while carrying very different pesos-per-square-meter allowances. The same can happen with sanitary fixtures, doors, windows, lighting and hardware. We prefer seeing the allowance value rather than relying on a broad label such as “standard.”
A simple bid-comparison sheet can prevent an expensive decision
Create one row per major scope and mark each bid as included, excluded, provisional or unclear. Add a reasonable value for missing items. Once you calculate an effective comparable total, the cheapest-looking bid may still be the best—or it may not.
How we want a Luxemcore quotation to be judged
Not by the grand total alone. Check whether the scope is traceable, quantities are understandable, allowances are realistic and exclusions are visible. If another contractor can deliver the same defined scope more efficiently, that is a fair comparison.
Frequently asked questions
What should I compare first in two quotations?
Start with scope and drawing basis. If the contractors are not pricing the same work, comparing totals first can be misleading.
How do I compare different tile or fixture allowances?
Normalize them to a common allowance or estimate the difference so you can see the effective cost on a comparable basis.
What does OSM mean?
Owner-Supplied Material. Items supplied directly by the owner should be clearly identified because they affect both contract price and contractor responsibility.
Should payment terms affect my decision?
Yes. Consider the relationship between billing milestones, actual progress, procurement needs, retention and the owner's cash-flow protection.
What if one quotation is much shorter?
Shorter is not automatically worse, but make sure it still identifies enough scope, specifications, exclusions and responsibilities to support a fair comparison.
Have two construction quotations that look difficult to compare?
Put them on the same scope basis first. The goal is not to prove which contractor is expensive—it is to find out what each price really buys.
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