How to compare contractor bids from architect drawings in Seattle and the Eastside

Short answer: you can only compare contractor bids that price the same job. Give every bidder the same complete drawings and specifications, and put the bids side by side line by line, so differences in scope, allowances, exclusions, sales tax, schedule and payment terms show up before the totals do. Check each contractor on the Washington Department of Labor and Industries (L&I) Verify page, and ask an attorney to read the contract before you sign.

Piper Cole designs and administers construction and does not build, so this page recommends no builder and gives no cost figures. The sources for this page were read on 9 November 2026: L&I’s contractor pages, RCW 18.27, 60.04 and 18.08, the Department of Revenue, the AIA’s published contract pages, the 2020 JLARC report on alternative public works contracting, and the Seattle and Bellevue pages named below. Laws and forms change. This is general information, not legal advice, so ask an attorney about contract terms. For a shoreline lot, read the waterfront builder guide as well.

Hard bid, negotiated price or cost plus

Two questions get mixed together: how you pick a contractor and how you pay one. On this page a bid is a price from a contractor against a complete set of drawings. A negotiated price means you choose a contractor first and settle the price together as the drawings finish. Washington’s public works vocabulary draws the same line: the JLARC report describes design-bid-build, where a public body picks the designer on qualifications and the contractor on price, and alternatives such as GC/CM and design-build. Those rules bind public bodies and do not set requirements for a private owner, so ask an attorney whether anything applies to you.

How you pay is the second question. The AIA’s contract pages sort it into three methods:

Way of pricing	How you pay	What to compare	Source
Fixed price (stipulated sum)	One total for the defined work. The contract says when the sum may change, and a change needs a change order. AIA says it works best when the scope is well defined.	The total, once scope, allowances and exclusions match	AIA Learn (form A101)
Cost of the work plus a fee	Actual costs plus a fee, which may be a lump sum or a percentage. What is spent has a direct economic consequence for the owner, and the contractor prepares a control estimate.	The fee, what is billed as cost, and the estimate behind it	AIA Learn; AIA 2017 form titles (A103)
Cost plus a fee, with a guaranteed maximum price	Costs plus a fee, with a ceiling the contract sum may not exceed, plus any additions or deductions the contract documents provide for. The contractor assumes the risk of costs over it.	The ceiling, what it includes, and what happens to savings	AIA Learn (form A102)

A negotiated price has no rival number, so ask for the same line item breakdown you would demand in a bid, and consider asking a second contractor to price the same set.

What a bid set contains

The AIA’s sample instructions to bidders (A701-2018) show how a bid package is organized. Bidding Documents are the bidding requirements (invitation, instructions, bid form) plus the proposed contract documents: the unsigned agreement, the conditions, the drawings, the specifications and every addendum (section 1.1). You do not need AIA forms to use three of its rules:

• Everyone prices the complete set. Neither the owner nor the architect takes responsibility for errors from incomplete documents (3.1.4).
• Changes travel by addendum. Clarifications are made by addendum, and answers given any other way are not binding (3.2.3). An addendum is a written or graphic instrument issued by the architect (1.3).
• Questions go in writing. A bidder who finds an error asks the architect in writing (3.2.1, 3.2.2).

The set should also say which revision it is. If the city sends corrections that change the drawings, issue the revised sheets to every bidder with the date, and ask each to confirm in writing which revision it priced.

Leveling bids side by side

Leveling means turning each bid into the same rows, so a gap in the total points to a cause. L&I’s advice is to get written bids and compare scope of work, warranties, references, completion dates and price, and to confirm that permit fees, taxes and other costs are included. Its Protect My Home page says, in its painting section, that some contractors leave out important items to make the bid appear unbelievably low. Line items make that visible. Use this table as a checklist.

Line to level	Write down for each bidder	Where the line comes from
Documents	Drawing and specification revision, addenda received, dates	AIA A701-2018, 3.1.4 and 3.2.3
Scope and products	The specific work, products, major suppliers and subcontractors	L&I contract contents
Allowances	Each item, its amount, who selects, what it covers	AIA Learn, allowances
Exclusions	Every item left out, listed so each can be priced	L&I, Protect My Home
Alternates and unit prices	Each alternate and unit price, against the same base bid	AIA A701-2018, 1.5 to 1.7
Sales tax and permit fees	Tax as its own line. Permit fees in or out.	Department of Revenue; L&I
Schedule and warranty	Start and end dates and the approvals they assume; what the warranty covers and for how long	L&I, comparing bids
Payment and change orders	Down payment, phases that trigger payments, the amount held back, how a change is priced and recorded	L&I Hire Smart
Insurance and registration	Registration number, insurance or assigned account, workers’ comp	RCW 18.27; L&I Verify

Once the rows match, read the totals. A bid far from the others usually has a reason in one of these rows, so ask the bidder to explain it in writing.

Allowances, alternates and sales tax

An allowance is a placeholder for an item whose exact cost cannot be fixed at bid time, according to AIA Learn. It covers materials and equipment delivered to the site, with labor, overhead and profit staying in the contract sum. When the real cost differs, a change order adjusts the sum. The owner directs which items fill the allowance and must select them on time. So give every bidder the same allowance list, item by item.

An alternate is an amount added to or deducted from the base bid if a change in the work is accepted, and a unit price is a price per unit of measurement (A701-2018, 1.6 and 1.7). Ask every bidder for the same alternates and units.

Sales tax is where totals mislead. The Department of Revenue says prime contractors must collect retail sales tax from the landowner on the gross contract price. It presumes a quoted price excludes the tax unless the tax is separately itemized, and says wording such as “tax included” is not sufficient (it cites RCW 82.08.050). Make tax its own line in every bid.

Checking each contractor in Washington

Washington requires every contractor to register with L&I. It is a gross misdemeanor to advertise, offer to do work, submit a bid or work as a contractor without being registered, or to subcontract to an unregistered contractor (RCW 18.27.020). The definition reaches any “improvement attached to real estate” (RCW 18.27.010), so the check covers the trades as well as the general contractor.

• Get the numbers. Ask for the name as registered, the registration number and the UBI number. Advertising must show the current registration number, and contracts must carry the name as registered (RCW 18.27.100).
• Use L&I Verify. L&I says you can search by contractor license number, UBI number, or a full or partial business or owner name. Confirm the registration is active, look at safety or construction citations, and check for an active, paid to date workers’ comp account covering any employees. L&I says portions of the information may be incorrect or not current.
• Ask for the bond and insurance papers. The state requires a surety bond and insurance, or an assigned account in place of insurance (RCW 18.27.040, 18.27.050). A contractor who files an assigned account must tell each person it bids to that recovery requires a court judgment. A contractor may not advertise as bonded and insured because of the required bond and insurance (RCW 18.27.100), so ask for the certificate. For a breach of contract claim, a residential homeowner has two years from the date the work was substantially completed or abandoned to sue on the bond (RCW 18.27.040).
• Check the city side. A city or county may not issue a building permit without verifying the contractor’s registration, and it prints the number on the permit (RCW 18.27.110). Seattle says you need a license for where you conduct business, not just where you are located, that subcontractors need a Seattle business license tax certificate even when the contractor holds one, and that some small businesses are exempt. Bellevue says businesses must register with the city and obtain a Bellevue business license if they have a physical location in the city or their receipts there pass the city’s threshold. Other cities set their own rules, so ask the permit center.

L&I Verify shows registration and citations and does not show who has built a house like yours, so ask for finished projects of the same kind in your city and call those owners.

Contracts, payments and liens

Before work starts on residential work of four or fewer units or accessory structures, at or above the minimum contract price the statute sets, the contractor must give you a disclosure statement (RCW 18.27.114). It gives the contractor’s registration and bond, warns that the bond may not be enough to cover a claim, and tells you that you may withhold a contractually defined percentage as retainage, that unpaid suppliers, employees or subcontractors could lead to a lien on your property, and that you may ask for lien releases. The contractor keeps your signed copy for at least three years, must tell you if its registration lapses, and cannot bring a lien claim on that contract without proving it gave you the statement.

L&I lists what a contract should include: the price including sales tax, payment terms, permit fees if applicable, the specific work, a list of materials, major suppliers and subcontractors, and warranties and processes for change orders. It says to get changes in writing, and to consider requesting a performance bond for larger projects, so ask each bidder whether one is available as its own line. The statute and the L&I page are not a complete contract, so ask an attorney to read yours and to say whether other laws add terms.

L&I’s advice on payment: keep the down payment reasonable, pay when specific phases are complete, hold back a portion of the payment until you are satisfied with the work, and before final payment request a completed lien release from all major subcontractors and suppliers. The lien law explains why: a person furnishing labor, professional services, materials or equipment to improve real property at the owner’s instance, or its agent’s, has a lien upon the improvement, subject to the notice rules in RCW 60.04.031 (RCW 60.04.021). For a remodel of an existing owner occupied single family residence, a claimant who did not contract directly with you must give you notice, and its lien can be satisfied only from amounts you had not yet paid the prime contractor when the notice was received (RCW 60.04.031). A claim must be recorded within ninety days after the claimant stops furnishing labor or materials (RCW 60.04.091), and on payment and your demand a claimant must sign and deliver a release (RCW 60.04.071). Ask an attorney which rule applies to a new house.

What the architect does while contractors bid and build

Piper Cole designs and administers construction and does not build. During bidding, the architect in the AIA model receives bidders’ written questions and issues the addenda. Once building starts, AIA Learn says the architect is not a party to the agreement between you and the contractor, yet administers construction through its own agreement with you (B101-2017, 3.6.1.1). In AIA’s description the architect certifies applications for payment, reviews submittals for design intent only, observes progress and general conformance, and does not control construction means, methods or safety. AIA’s field report guidance adds that the architect is not required to make exhaustive or continuous inspections.

Washington lets any person administer a construction contract for a residential building of up to four dwelling units (RCW 18.08.410(5)), so the choice of who does it is yours. Your contract with the architect sets what is included, so read it. See what to look for in an architecture contract, red flags in an architect proposal, architect or contractor and how to choose a general contractor.

Questions to put to every bidder

• Which drawing revision and which addenda did you price?
• What are your registration and UBI numbers, your city business license, and the major subcontractors’ registration numbers?
• Which items does your bid exclude, and which allowances does it carry?
• Is sales tax its own line, and are permit fees in or out?
• What dates do you assume, and how do you price and record a change?
• What is the payment schedule, and when do I receive lien releases?
• What does the warranty cover, and is a performance bond available?

Where to start

1. Finish the drawings and specifications, then invite several registered contractors to bid in writing on the same set. L&I says to get at least 3 written bids.
2. Verify each one on L&I Verify and with the city, then level the bids.
3. Have an attorney read the contract and the disclosure statement, and set up lien releases and a phase based payment schedule before the first payment.

If you want to talk before you ask for bids, the free first basic feasibility check usually takes about a day. David Meade has been an architect since 1996, an AIA member since 1992 and an NCARB member since 1996.

Questions

How do I compare contractor bids for a remodel?

Give every bidder the same complete drawings, specifications and addenda, then put the bids into one table with rows for scope, allowances, exclusions, alternates, unit prices, sales tax, permit fees, schedule, warranty and payment terms. L&I’s advice is to get written bids and compare scope of work, warranties, references, completion dates and price. Read the totals only after the rows match, and ask any bidder far from the others to explain the gap in writing.

What is the difference between a fixed price, cost plus and a guaranteed maximum price?

AIA Learn describes a fixed price (stipulated sum) as one total for the defined work, best when the scope is well defined. Cost plus means you pay actual costs plus a fee, so what is spent has a direct economic consequence for you. A guaranteed maximum price is cost plus with a ceiling the contract sum may not exceed, plus any additions or deductions the contract documents provide for. You compare different things in each: the total, the fee and billed costs, or the ceiling.

How many contractor bids should I get?

L&I’s pages say to get at least 3 written bids and compare them carefully. The number matters less than the match: every bidder needs the same documents and the same answers. Washington’s public body bidding rules are not requirements for a private owner, so ask an attorney whether anything beyond the state’s contractor laws applies to your project.

What is a negotiated contract compared with a bid?

On this page a bid is a price against a complete set of drawings. A negotiated price means choosing a contractor first and settling the price together as the drawings finish. A bid gives you rival numbers. A negotiated price has none, so ask for line items and consider asking a second contractor to price the same set.

How do I check that a contractor is registered in Washington?

Use L&I Verify. L&I says you can search by contractor license number, UBI number, or a full or partial business or owner name. Confirm the registration is active, look at safety or construction citations, and check for an active, paid to date workers’ comp account covering any employees. L&I says portions of the information may be incorrect or not current. Check the major subcontractors too.

Is sales tax included in a contractor’s quote?

Not unless the quote itemizes it. The Department of Revenue presumes a quoted price excludes retail sales tax unless the tax is separately itemized, and wording such as tax included is not sufficient. It says prime contractors must collect the tax from the landowner on the gross contract price. L&I says a contract should state the price including sales tax, so make tax its own line in every bid.

What must a Washington contractor give me in writing before work starts?

For residential work of four or fewer units or accessory structures, at or above the statute’s minimum contract price, the contractor must give you a disclosure statement before work starts (RCW 18.27.114). It covers registration and bond, a warning that the bond may not be enough, retainage, liens and lien releases. The contractor keeps your signed copy for at least three years. It is not a full contract, so an attorney should read yours.

Can a subcontractor put a lien on my house if I paid the builder?

Possibly, depending on the project. For a remodel of an existing owner occupied single family residence, a claimant who did not contract directly with you must give you notice, and its lien can be satisfied only from amounts you had not yet paid the prime contractor when the notice was received (RCW 60.04.031). Ask for lien releases from major subcontractors and suppliers before final payment, as L&I advises, and have an attorney or title company confirm which rule applies.

What does the architect do while contractors bid and build?

Piper Cole designs and administers construction and does not build. In the AIA model, the architect receives bidders’ written questions and issues addenda during bidding. During construction it reviews payment applications, makes site visits and reports what it observes, and it does not control construction means, methods or safety. Your contract with the architect sets what is included, so read it before you sign.