A complete basement bid describes the work trade by trade with quantities, separates fixed items from allowances, lists exclusions, says who pulls each permit, ties payments to completed and inspected work, and puts change orders, warranty and timeline in writing. Minnesota law requires a licensed contractor's bids and contracts to describe the services, the materials and the total price in writing.
To compare two bids, line them up by trade, turn every blank into a written question, and bring the allowances to the same level before you compare totals.
On this page
- What does a complete basement bid include?
- Why should a basement bid break the scope out by trade?
- What is an allowance in a basement bid, and how is it different from a fixed item?
- What should a basement bid list as excluded?
- Should a basement bid include permits?
- What is a reasonable payment schedule for a basement bid?
- How should a basement bid handle change orders?
- What warranty and timeline language should a basement bid have?
- Which basement bid line items should you check most closely?
- What are the red flags in a basement bid?
- How do you compare two basement bids apples to apples?
- What lien language should be in a Minnesota basement bid?
- How does this play out in a typical Twin Cities basement?
- Questions people ask
What does a complete basement bid include?
A basement bid is not a price. It is a description of a finished room with a price attached. When I read a bid, I am checking whether two strangers could hand it to a crew and get the same basement. If they couldn't, the price is not a real number yet, because whatever the paper leaves open gets settled later, usually as an extra.
Minnesota sets a floor. Under Minnesota Statutes 326B.809, a licensed residential contractor's agreements have to be in writing and include a detailed summary of the services, a description of the specific materials or a list of standard features, and the total price or how the price will be calculated. The statute says this applies to proposals, estimates, bids, quotations, purchase orders and change orders. Before you sign, the contractor must give you written performance guidelines, both of you sign and date the agreement, and you get a signed copy at no charge.
That is the legal minimum. A bid you can actually compare and manage has ten parts:
| Part of the bid | What it should cover | Why it matters |
|---|---|---|
| Scope by trade | Framing, electrical, plumbing, HVAC, insulation, drywall, trim, doors, flooring, paint, each with quantities | Lets you see what is in and compare line to line |
| Fixed items vs allowances | Which items are priced exactly and which are placeholders with a stated budget | Allowances are where totals drift |
| Exclusions | A written list of what is not included | Silence is not the same as included |
| Permits and inspections | Who obtains each permit and schedules inspections | Whoever pulls the permit owns code compliance |
| Payment schedule | Deposit, then payments tied to completed stages, with a final holdback | Keeps your money behind the work |
| Change order process | Written, priced and signed before the work changes | Required in writing by state law |
| Warranty | What the contractor warrants, for how long, and how you make a claim | Sits on top of Minnesota's statutory warranties |
| Timeline | Anticipated start and completion dates and how delays are handled | Gives you a basis to ask questions when it slips |
| Lien notice | The Minnesota mechanic's lien notice, if subcontractors or suppliers are used | Required in the contract; protects you from paying twice |
| Cleanup | Daily housekeeping, debris removal, final clean | Easy to forget, hard to negotiate later |
The Minnesota Attorney General's home building and remodeling handbook goes further than the statute: it recommends brand names, colors, grades and model numbers where possible, a list of subcontractors and material suppliers, who obtains permits, start and completion dates, a holdback clause and cleanup terms. It also warns that anything a salesperson promised out loud and left out of the paper may come back as a costly extra.
Why should a basement bid break the scope out by trade?
A single line that says "finish basement per plan" tells you nothing about what you are buying. A basement is eight or nine trades stacked in sequence, and each one has its own decisions. When a bid breaks the work out by trade with quantities, you can see that one contractor counted twelve recessed lights and the other counted twenty, or that one included a new supply run to the bedroom and the other assumed the existing duct would do.
Quantities are the tell. "Electrical: new circuits and lighting" is a category. "Electrical: three new 20-amp circuits, 18 recessed LED lights on four dimmers, 22 receptacles, data and TV box at media wall" is a scope. The second version is something you can check at the rough-in inspection and something the next bidder can price the same way.
What is an allowance in a basement bid, and how is it different from a fixed item?
A fixed item is priced exactly: the contractor knows what product goes in and owns the cost. An allowance is a placeholder budget for something not chosen yet, such as tile, a vanity, light fixtures or carpet. If your final pick costs more than the allowance, you pay the difference. If it costs less, you should get a credit. Both directions should be written into the bid.
Allowances are not a trick. They are how you sign a contract before every finish is picked. The problem is an allowance set too low for the finish you have in mind. The bid looks cheaper, and the gap shows up in the middle of the job when you are standing in a showroom. Before comparing totals, ask each contractor what their allowance assumes: a stock vanity or a furniture-style one, a basic plank or a thicker rigid-core floor, a builder fixture or the one in your inspiration photo.
BuildFlow's own product budgets for standard and premium finishes are laid out in the 50K / 65K / 80K budget breakdown, which is a useful yardstick for whether an allowance on a bid is realistic for the finish you want.
| Item type | How it should read on a bid | Watch for |
|---|---|---|
| Fixed item | Product, size, quantity and model where known: "36 in shaker vanity, quartz top, model X" | "Vanity" with no description is not really fixed |
| Allowance | A stated budget, what it covers (material only, or material and labor), and how overages and credits work | Allowances that cover material only, while labor for a pricier choice is billed as a change |
| Unit-price allowance | Budget per square foot or per unit, with the quantity stated | No quantity listed, so the total can't be checked |
| Excluded | Named in an exclusions list | Items that are simply never mentioned |
What should a basement bid list as excluded?
A good bid lists what it doesn't include, because a basement has predictable gray zones. These are the ones I look for in an exclusions list or in the scope:
- Existing conditions. Water seepage, foundation cracks, radon mitigation and old wiring found when walls open. See moisture and mold and radon in Minnesota basements.
- Mechanical upgrades. Whether the furnace and water heater stay as they are, and whether any duct, gas line or vent relocation is included.
- Egress. Whether a new egress window, well, excavation and permit are in the price or a separate line.
- Appliances and low-voltage. Bar fridge, TV, speakers, network and security wiring.
- Painting scope. Ceilings, closets, doors and trim, or walls only.
- Furniture moving and storage. Who empties the basement before work starts.
Should a basement bid include permits?
Yes, and it should say who obtains them. The Attorney General's handbook makes the stakes plain: if the contractor obtains the permit, the contractor is responsible for code compliance; if you obtain it, you are. The same handbook lists a contractor who asks you to get the permits as a red flag.
Cities split permits differently. The City of Blaine, for example, says a hired general contractor is required to obtain the permits, covers building, plumbing and mechanical work under one basement finish permit, handles electrical permits separately through the state's online system, and requires a separate permit for adding or resizing a window. Other cities issue separate trade permits. The bid should name every permit your city needs, and the payment schedule should line up with the inspections.
Check with your city: permit types, fees and the inspection sequence vary from one Minnesota city to the next. Our Minnesota basement permit and egress guide covers the common requirements.
What is a reasonable payment schedule for a basement bid?
The pattern Minnesota's consumer guidance points to is a modest deposit, payments tied to work actually completed, and a final payment held until the job passes inspection. The Attorney General's handbook says a small good-faith down payment is customary, that a large down payment is a reason to avoid a contractor, that a schedule tied to work completed to date may be reasonable, and that a holdback clause lets you withhold final payment until inspections pass and the work is complete. The Department of Labor and Industry says to be wary of contractors who require full or substantial payment before work begins, and that the contract should state clearly when each payment is due.
In a basement, natural milestones are easy to name: framing and rough-ins passed, insulation and drywall complete, finishes installed, final inspection passed. A schedule written against those events keeps your money roughly level with the value standing in your basement.
Why paper payments matter
Pay in a way that leaves a record, and get a receipt for each payment. Minnesota's Contractor Recovery Fund can compensate homeowners for out-of-pocket losses caused by a licensed residential contractor, but it requires a court judgment and documented losses. A cash payment with no receipt is very hard to prove.
How should a basement bid handle change orders?
Changes happen in every basement. You decide the closet should be bigger, or the inspector asks for something. The bid should say how a change is priced and approved before anyone acts on it. Minnesota Statutes 326B.809 lists change orders among the agreements that must be in writing, and the Attorney General recommends a clause stating the contract cannot be modified without the written consent of both parties.
A good change order process reads like this: the contractor writes up the change, its price and its effect on the schedule; you sign it; then the work happens.
What warranty and timeline language should a basement bid have?
Minnesota has statutory warranties for home improvement work under chapter 327A. As summarized in the Attorney General's handbook, they start when a home improvement project is completed and include one year for defects from faulty workmanship and defective materials, two years for faulty installation of plumbing, electrical, heating and cooling systems, and ten years for major construction defects. The handbook explains the steps: written notice to the contractor within six months of discovering the problem, then an inspection and a written offer to repair.
For the schedule, the handbook recommends anticipated start and completion dates plus a general allowance for reasonable delays, and the Department of Labor and Industry suggests stating deadlines and what happens if they are missed. Inspection scheduling, material lead times and dry time all move a basement schedule, so I would rather see honest dates with stated assumptions than a promise that ignores them.
Which basement bid line items should you check most closely?
These are the lines where I see the biggest differences between bids for the same basement. The cost of each line is covered in the basement finishing cost guide; this table is about what the line should say.
| Bid line | What it should say | Watch for |
|---|---|---|
| Egress window | Window size and type, well, cover, excavation, cutting the foundation, interior finish and permit | "Egress by others" or no permit; a bedroom with no egress plan at all. See egress for bedrooms |
| Framing | Wall layout per plan, soffits around beam and duct trunk, fireblocking, rooms and closets named | No mention of soffits in a basement that clearly needs them |
| Insulation | Method and product for foundation walls and rim joist | "Insulate per code" with no product. See basement insulation |
| Electrical | Number of circuits, lights, switches, dimmers, receptacles, alarms, low-voltage, and who pulls the electrical permit | Lighting described as a lump sum with no count |
| HVAC | New supply and return runs per room, any duct relocation, bathroom exhaust ducted outside | Finished rooms with no new supply or return listed |
| Plumbing | Fixtures, rough-in location, ejector pump if needed, venting, water heater capacity check | Bathroom with no mention of how waste leaves. See ejector pumps |
| Drywall | Board type by room, ceiling type, and level of finish | No finish level, or Level 4 on walls that will get sheen or dark paint |
| Ceiling | Drywall, drop ceiling or mixed, with access panels at valves and cleanouts | Access left out. See ceiling options |
| Doors and trim | Door count and style, casing and base profile, stain or paint | "Trim" with no profile or count |
| Flooring | Product type, square footage by room, subfloor prep, transitions | No prep or transition line. See the flooring guide |
| Stairs | Treads, risers, railing, lighting and finish | Stairs left out of the scope entirely |
| Paint | Walls, ceilings, doors and trim, number of coats | "Paint walls" only |
| Cleanup | Daily cleanup, dust control, dumpster, final clean | Debris removal not mentioned |
Drywall level of finish
Drywall finish has a standard scale, GA-214 from the Gypsum Association. As CertainTeed summarizes it, Level 4 suits smooth walls with flat paint, light textures or wallcoverings, and is not recommended for non-flat or dark paints. Level 5 adds a skim coat over the whole surface and is recommended for sheen or glossy paint, dark colors and critical lighting. That matters in a basement with a long wall washed by wall-grazing light or a dark media room. If the bid doesn't name a level, ask.
What are the red flags in a basement bid?
The Minnesota Attorney General and Department of Labor and Industry publish warning signs. These are the ones that show up in basement bids:
- Vague scope. "Finish basement" with no quantities, products or room list. You can't hold anyone to it.
- A large deposit. The Attorney General calls a large down payment a reason to avoid a contractor, and DLI warns against full or substantial payment before work begins.
- No permit, or asking you to pull it. The Attorney General lists asking you to obtain permits as a warning sign.
- No written contract or estimate. Both agencies list refusing to give a written estimate or contract as a red flag.
- No license number. Licensed residential contractors must show their license number on contracts and advertising.
- Pressure to sign now. High-pressure tactics are on both agencies' lists. A real bid is still valid next week.
- An unusually low price. The Attorney General notes that an unusually low bid may mean inexperience, inferior materials, or price increases later for "unforeseen circumstances."
- Signing an estimate or "authorization" form. DLI notes these are often binding contracts, so don't sign one until you've decided to hire.
- Cash only, with no receipt. It leaves you nothing to prove a loss with later.
How do you compare two basement bids apples to apples?
The Attorney General recommends at least three written bids that describe the scope, materials and total cost, and warns that the lowest bid isn't necessarily the best. Comparing them takes an hour with a pen. This is the method I use:
- Lay them side by side by trade. Use the line-item table above as rows and each bid as a column.
- Mark every gap. A blank cell is a question, not a saving.
- Normalize the allowances. If one bid carries a much lower flooring or vanity allowance, raise it to the other's figure on paper before you compare totals.
- Price the exclusions. If Bid A includes the egress window and Bid B excludes it, Bid B's total isn't comparable until that line is added.
- Compare payment terms and schedule. A lower total with most of the money due up front carries more risk.
- Send the same questions to both. Ask each contractor to answer in writing so the answers become part of the bid.
| Line | Bid A | Bid B | Question to send |
|---|---|---|---|
| Egress window | Included with well, cover and permit | Not mentioned | B: is egress included, and if so what size and well? |
| Recessed lights | 18 on 4 dimmers | "Lighting package" | B: how many lights and switches? |
| Bath vanity | Allowance, material and install | Allowance, material only | B: what does a vanity change cost to install? |
| Drywall finish | Level 4, Level 5 on media wall | Not stated | B: what level of finish? |
| Final payment | Due after final inspection | Due at substantial completion | B: can final payment follow the final inspection? |
What lien language should be in a Minnesota basement bid?
If your contractor will use subcontractors or suppliers, Minnesota Statutes 514.011 requires the mechanic's lien notice to be included in the written contract. It tells you that people who supply labor or materials may file a lien against your property if they are not paid, and that you may withhold amounts due them until 120 days after completion unless the contractor gives you lien waivers signed by those suppliers. A contractor who fails to give the notice loses its own lien rights under the statute. When the notice is in the contract, ask for signed lien waivers with each progress payment and before the final one; the companion article on contractor questions explains how.
How does this play out in a typical Twin Cities basement?
Take a 1998 house in Lakeville: poured walls, 8 ft ceilings, a steel beam down the middle, the main duct trunk beside it, a sump in one corner and the furnace and water heater in another. About 1,000 sq ft to finish, with a family room, a bedroom, a three-quarter bath and storage.
Here is where bids for this basement usually diverge. One bid wraps the beam and trunk in one continuous soffit; another prices two soffits and a dropped section, or doesn't mention them. One includes a new egress window for the bedroom with well and permit; another lists "bedroom" without egress, which is a bedroom the inspector won't pass. One shows a sewage ejector because the bath sits below the main drain; another is silent on how the toilet drains. One names Level 4 drywall throughout; another doesn't say. Each of those silences is a likely change order.
Before comparing totals, I would send each contractor the same five questions: soffit layout, egress, bath drainage, number of new supply and return runs, and the allowance for flooring and the vanity. Once the answers are on paper, the bids are comparable, and the real price difference is usually smaller than it first looked.
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Design my basement with EmmaQuestions people ask
What should be included in a basement finishing bid?
A written scope broken out by trade with quantities, clear allowances and fixed items, an exclusions list, who pulls each permit, a payment schedule tied to completed work, a written change order process, warranty terms, start and completion dates, and the Minnesota mechanic's lien notice if subcontractors are used. Minnesota law requires bids and contracts from licensed contractors to describe the services, materials and total price in writing.
What is an allowance in a contractor bid?
An allowance is a placeholder budget for a finish you haven't chosen yet, such as tile, a vanity or light fixtures. If your choice costs more, you pay the difference; if it costs less, you should get a credit. Ask whether each allowance covers material only or material and installation.
How much deposit should a basement contractor ask for?
Minnesota's Attorney General says a small good-faith down payment is customary and that a large down payment is a reason to avoid a contractor. The Department of Labor and Industry warns against full or substantial payment before work begins. Tie later payments to completed, inspected stages and hold the final payment until the final inspection passes.
Should the contractor or the homeowner pull the basement permit?
The contractor, in most cases. Minnesota's Attorney General notes that whoever obtains the permit is responsible for code compliance and lists a contractor asking you to obtain permits as a red flag. Check your city's rules, since permit types differ by city.
Why is one basement bid so much cheaper than another?
Usually because it includes less: a missing egress window, low allowances, no soffits, fewer lights or no mention of bath drainage. Line the bids up by trade, fill every gap with a written question, and compare again. The Attorney General warns that an unusually low bid may lead to price increases later.
Do change orders have to be in writing in Minnesota?
Yes. Minnesota Statutes 326B.809 lists change orders among the agreements a licensed residential contractor must put in writing, with the scope and price. Sign each change before the work is done.
Sources (7)
- Minnesota Statutes 326B.809: Written contract required — Written agreements, including bids and change orders, must describe services, materials and total price; performance guidelines; signatures and copies
- Minnesota Attorney General: Home Building and Remodeling handbook (PDF) — Contract contents, permits and code-compliance responsibility, small deposit and large down payment warning, payment tied to work, holdback clause, at least three bids, low bid warning, change order consent clause, chapter 327A warranty terms, red flags, cleanup, dates
- Minnesota DLI: Tips for hiring a contractor — Wariness of full or substantial upfront payment, payment dates in the contract, deadlines, authorization forms as binding contracts, warning signs
- Minnesota DLI: Contractor Recovery Fund — Recovery fund requires a judgment and documented out-of-pocket losses
- Minnesota Statutes 514.011: Mechanic's lien notices — Lien notice required in the written contract, 120-day withholding, lien waivers, loss of lien rights for failing to give notice
- City of Blaine: Basement and room finish permits — Example of a city requiring the hired general contractor to obtain permits; combined basement finish permit; separate electrical and window permits
- CertainTeed: Recommended levels of gypsum board finish (GA-214) — GA-214 drywall finish Levels 4 and 5 and when each is recommended
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Keep reading
- How does finishing a basement actually go, and what should you fix before the walls go up?
- What does $50K, $65K or $80K buy in a Twin Cities basement?
- How much does it cost to finish a basement in the Twin Cities? (2026)
- Where to spend and where to save when you finish a basement
- What does a basement bedroom need to be legal in Minnesota?