Once you've interviewed contractors and checked their references, you should have a "short list" of those who you feel are most suitable for your needs. The next step is to get actual bids for the work.

How many bids do you need? There are no hard and fast rules here. Some consumers prefer to get a number of bids before making a decision. Others find that, after the interview process, there is one contractor they strongly prefer and only ask that contractor for a formal bid. What really matters is that you end up feeling that you have adequate information to make the right choice of contractor. However, as a general rule, three bids will usually provide sufficient information for you to make a decision.

There are a few things you need to know before asking for, and evaluating, contractor bids.

The first is the importance of clear and detailed plans and specifications. All contractors must bid on the same basis, and it's your responsibility to provide the information needed. If you don't provide adequate plans and/or specifications for your project, each contractor will decide how they will carry out the work and what products and materials they will use. This is likely to leave you comparing "apples and oranges"-dissimilar bids that all represent different levels of quality.

The second is the importance of carefully reviewing all the information presented in the contractors' bids. You need to verify that each bid proposes to do the work as you have specified. You should carefully compare the prices, payment terms and work schedule proposed by each contractor. And you need to consider all of the information you gathered through your contractor interviews and customer reference checks. It is strongly recommended that you look for the bid that offers you the best overall value, not just the lowest price.