Property Lines and Groundwork

Comparing Contractor Bids and Reading a Contract

Learn how to compare written fence and gate bids line by line, and what a clear contract should say about scope, payment, changes, timing and cleanup.

On this page
  1. Start by asking for the same thing
  2. What to compare line by line
  3. Why the lowest price is only one signal
  4. What a clear contract should state
  5. Red flags worth pausing over
  6. Before you sign

Start by asking for the same thing

Bids are only comparable if each contractor priced the same job. Before collecting quotes, write a short description: the approximate length of fence, height, material, number and type of gates, and anything unusual such as a slope, a tree, or an old fence to remove. Give every bidder the same description, and let each one see the site. A bid given over the phone without a visit is a rough estimate at best.

Ask for written, itemized bids. Three or so is a common number to collect, though more is not harmful.

What to compare line by line

Lay the bids side by side and check whether each includes the same items.

  • Materials: type, grade or species, dimensions, and finish. “Cedar fence” is vague; board size, post size and rail count matter.
  • Posts: post size, how deep they are set, and whether they go in concrete or gravel. These details strongly affect lifespan.
  • Hardware: hinges, latches and fasteners, and whether they are rated for outdoor or wet use.
  • Gates: number, width, type and whether any automatic opener is included.
  • Removal and disposal: taking down an old fence and hauling it away is often a separate line.
  • Site work: clearing brush, leveling, working around roots, and rock or hard soil.
  • Permits and utility marking: who applies for permits, who pays, and who requests utility locating.
  • Cleanup and restoration: what condition the yard is left in.

A bid that omits an item is not necessarily cheaper; the cost may just arrive later as a change order. Many of these items are also behind the fence cost factors that make quotes differ.

Why the lowest price is only one signal

A much lower bid can reflect thinner materials, shallower posts, no removal of the old fence, or an unclear scope. It can also just reflect a smaller overhead or a slow season. Ask why numbers differ rather than assuming. Also consider how long the company has operated locally, whether it carries liability insurance and any required local license, and whether it will provide references you can contact. Verify these directly rather than relying on a brochure. Understanding how to vet suppliers and checking each claim carefully tend to be more useful than any single price.

What a clear contract should state

A contract should turn the bid into specific commitments. Look for:

  1. Parties and addresses, including the contractor’s legal name and license number where one is required.
  2. Scope of work, listing materials, dimensions, gates, and removal or cleanup, with the bid attached or referenced.
  3. Total price and payment schedule. A modest deposit followed by payments tied to progress is common. Be cautious about large payments in advance, and keep payment terms consistent with local rules, which vary.
  4. Start and completion timing, with a note about weather delays and what happens if work stalls.
  5. Permits and approvals, stating who obtains them. If an association must approve the design, the contract should not begin until it does.
  6. Change orders, meaning that any added work or cost is agreed in writing first.
  7. Property line responsibility, clarifying who determines the line and what happens if the fence is placed incorrectly. Contractors commonly place fences where the owner indicates, so be sure you know the line from your property survey.
  8. Utility marking, confirming that underground lines will be located before digging.
  9. Warranty terms, covering materials and workmanship, including duration and exclusions. Our overview of fence warranties describes what these usually include.
  10. Insurance and liability, such as proof of coverage and responsibility for damage during work.
  11. Cancellation and dispute terms, and how a final walk-through and sign-off will work.

Red flags worth pausing over

  • Pressure to sign the same day, or a discount that expires immediately
  • A request for full payment up front
  • No written scope, or “materials as needed”
  • Unwillingness to name a license, insurance or references
  • Verbal promises that do not appear in the document

None of these proves bad intent, but each is a reason to ask more questions.

Before you sign

Read the whole document, including the fine print. Ask about anything you do not understand, and get the answer in writing. If the project is large or the contract is unusually complex, it may be worth having a lawyer review it. Keep copies of the bid, contract, change orders, receipts and photos of the finished work together, since they are useful if a warranty claim or disagreement arises later.

Local consumer and contractor laws differ, and this article is general information rather than legal advice.

The complete guide to property lines and groundwork

Before You Build: Property Lines, Utilities and Paperwork
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