The Myth of the Three-Bid Rule

In theory, the three-bid rule was thought to work because it assumed everything else, other than cost, from the competing bidders was equal. This thought process assumed that each bidding company had assessed and calculated the scope of work and specifications in the exact same way.

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In reality, however, such assumptions are rarely, if ever, accurate. Every contractor, professional or not, analyzes a new project and estimates its associated costs differently; as a result, the three bids are not apples-to-apples comparisons. The differences can be subtle, but they exist. And those differences render an unequal playing field for competitive bidding creating confusion and misunderstanding.

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In addition to being inaccurate as a cost comparison tool, the three-bid rule reduces each company to a number rather than considering their skills, experience, personality, record of success, and ability to complete the work to the customer’s satisfaction. For this reason, an increasing number of the best companies simply refuse to bid competitively, opting out of such opportunities because they know they are being evaluated only in terms of a cost estimate (that is inaccurate) rather than whether they are the best company for the job.

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​At SSS Custom Closets, we have decades of experience estimating the cost of custom storage solutions. We take into consideration everything from the unique characteristics of a space to the client’s wish list. Our goal at the conclusion of each project is for our customer to be delighted with their new closet, knowing that they made a sound investment in their home.