Should I hire the cheapest contractor?

Short answer

Not automatically. The lowest bid is worth taking seriously only when it covers the same scope, the same material grade, permits, insurance and a real schedule. A price far below the others usually means something has been left out — and you will pay for it later as a change order.

Full explanation

Low bids are not always bad. A contractor with an open slot, a nearby job, or lower overhead can legitimately be cheaper. The problem is a bid that is low because something is missing.

Common reasons a bid is unusually low:
- Scope gaps — demolition, disposal, permits, patching, painting or cleanup excluded.
- Cheaper material grade or a different product than the one you specified.
- No permit, or the permit pushed onto you as the homeowner.
- Unlicensed or uninsured labour.
- A deliberately thin bid that is recovered through change orders once work has started.
- Cash-flow trouble: your deposit funds someone else''s unfinished job.

How to test a low bid: put the three estimates side by side line by line, and ask the low bidder to explain the gaps in writing. A legitimate contractor will explain them. If the answer is vague, the difference is risk, not savings.

What to weigh alongside price: verified license and insurance, references for similar work, a written contract, a payment schedule tied to progress, warranty terms, and how the contractor communicates before you have paid anything — that rarely improves afterwards.

State-specific rules

In Florida, be especially cautious with unusually low post-storm bids and door-to-door offers. Florida consumer agencies warn that unlicensed "fly-by-night" operators collect deposits after a disaster and never complete the work.

Verify the license on the DBPR Licensing Portal, insist on a written contract, and never pay a large upfront amount to a contractor you cannot look up.

Common mistake to avoid

Choosing on price alone and paying a large deposit is the single most common path to an abandoned project. Price is one factor; verified license, insurance and a progress-based payment schedule matter more.

Sources & References

How To Avoid a Home Improvement Scam — Federal Trade Commission official source
Service Contractor Scams — Florida Department of Agriculture and Consumer Services official source
Licensing Portal — Verify a License — Florida Department of Business and Professional Regulation official source

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