How to Evaluate Paving Contractor Bids for Your Business

Why Bid Evaluation Matters More Than Price

The difference between a parking lot that lasts 20 years and one that fails in 5 often comes down to contractor selection. And contractor selection comes down to how well you evaluate bids.

Commercial paving is a significant investment. A 100-space parking lot can cost $30,000-$70,000. Choosing the wrong contractor based on a low bid can result in premature failure, expensive repairs, and a second paving project years before one should be needed.

This guide shows you how to evaluate paving bids like a professional, so you select the contractor who delivers the best long-term value for your Oregon commercial property.

Step 1: Establish a Clear Scope Before Requesting Bids

The single most important step in getting comparable bids is giving every contractor the same scope of work. Without a clear scope, you will receive bids for different things and have no way to compare them fairly.

What to Include in Your Bid Request

Provide each contractor with:

• Site plan or sketch showing the project area with dimensions
• Current conditions including photos of damage and problem areas
• Project objectives (maintenance, resurfacing, or full replacement)
• Specific requirements (ADA upgrades, drainage work, striping)
• Timeline expectations (desired start date and completion date)
• Access constraints (business hours, phasing requirements)

Questions to Answer Before Requesting Bids

• Is this an overlay or full replacement? (If you are unsure, ask each contractor to assess and recommend.)
• Does the lot layout need to change, or are you repaving the existing design?
• Are stormwater improvements required by your local jurisdiction?
• What ADA upgrades are needed?
• Is striping included in the scope or bid separately?

Step 2: Verify Contractor Qualifications

Before evaluating any bid on its merits, verify that the contractor is qualified to do the work.

Mandatory Checks

| Requirement | How to Verify | |------------|--------------| | Oregon CCB license | Search ccb.oregon.gov | | General liability insurance | Request current certificate (minimum $1M) | | Workers compensation insurance | Request current certificate | | Surety bond | Verify through CCB | | Business references | Contact 2-3 recent commercial clients | | Similar project experience | Ask for photos and descriptions of comparable work |

Disqualifying Factors

Remove any contractor from consideration who:

• Does not hold a valid Oregon CCB license
• Cannot provide current insurance certificates
• Refuses to provide references
• Has unresolved complaints on their CCB record
• Cannot show experience with projects similar to yours

Step 3: Compare Bid Components

A professional paving bid should contain specific, measurable details. Vague bids are a red flag.

Material Specifications

Compare these specifications across all bids:

Aggregate base:

• Depth (inches) — should be 6-12 inches depending on soil and traffic
• Material type (crushed rock, recycled aggregate)
• Compaction standard (typically 95% of maximum dry density)

Asphalt:

• Mix type (e.g., 1/2-inch dense mix, Level 2 or Level 3)
• Lift thickness (typically 2-3 inches per lift for commercial lots)
• Total compacted thickness (3-4 inches standard, 4-6 inches heavy-duty)
• Compaction standard (92-95% of theoretical maximum density)

Other materials:

• Tack coat between lifts
• Crack sealant type for existing crack repair
• Striping paint or thermoplastic type

If a bid does not specify these details, ask for them in writing before comparing.

Scope Completeness

Check that each bid covers the same items. Common items that may be included or excluded:

| Item | Should Be in Bid | |------|-----------------| | Demolition and removal of existing pavement | Yes, if replacing | | Subgrade preparation and compaction | Yes | | Aggregate base installation | Yes | | Asphalt installation | Yes | | Tack coat between lifts | Yes | | Transitions to existing pavement | Yes | | Adjustment of utility covers (manholes, valve boxes) | Often excluded — ask | | Striping | Sometimes excluded — ask | | Signage | Usually excluded — ask | | Stormwater work | Often excluded — ask | | Mobilization/demobilization | Should be included | | Traffic control | Should be included | | Cleanup and disposal | Should be included |

A bid that appears lower may simply be missing scope items that other bids include.

Warranty Terms

Compare warranty coverage carefully:

• Workmanship warranty: Minimum 1 year, 2 years preferred. Covers defects in installation, not material failure or wear.
• Material warranty: Usually from the asphalt supplier, not the contractor. Typically limited.
• What the warranty covers: Specify in writing. Does it cover cracking? Rutting? Drainage issues?
• What voids the warranty: Understand exclusions. Most warranties exclude damage from chemicals, impact, or lack of maintenance.

Payment Terms

Standard payment structures for commercial paving:

• 10-20% deposit upon signing the contract
• Progress payments tied to milestones (base completion, paving completion)
• Final payment after inspection and punch list completion
• Retainage of 5-10% held for 30-60 days after completion

Red flag: Any contractor requiring 50% or more upfront before work begins.

Step 4: Analyze Price Differences

Once you have comparable bids, analyze why prices differ.

Understanding Price Ranges

For the same project, bids within 10-15% of each other typically reflect normal market variation. Differences greater than 20% suggest different scopes, material specifications, or approaches.

Why a Bid Might Be Higher

Legitimate reasons for a higher bid:

• Better materials (thicker base, higher-grade asphalt mix)
• More thorough preparation (additional compaction passes, better subgrade work)
• Longer warranty backed by the contractor's confidence in their work
• Better equipment and more experienced crews that produce better results
• Comprehensive scope including items other bids excluded

Why a Bid Might Be Lower

Concerning reasons for a significantly lower bid:

• Thinner materials (less base depth, thinner asphalt)
• Reduced preparation (fewer compaction passes, minimal subgrade work)
• Lower-quality mix that may not perform well in Oregon's climate
• Missing scope items that will become change orders during construction
• Underbidding to win with the intent to make up margin through change orders
• Subcontracting all work with less quality control

The Change Order Trap

Some contractors intentionally submit low bids knowing they will issue change orders once work begins. Protect yourself by:

• Requiring a detailed scope with measurements and specifications
• Including a change order clause in the contract with approval requirements
• Setting a maximum change order percentage (10-15% of contract value) without your written approval
• Asking each contractor what conditions might trigger a change order

Step 5: Make Your Decision

Weighted Scoring Method

Score each bid on a weighted scale:

| Factor | Weight | Score 1-5 | |--------|--------|-----------| | Price competitiveness | 25% | | | Material specifications | 20% | | | Scope completeness | 15% | | | Contractor experience and references | 15% | | | Warranty terms | 10% | | | Timeline and scheduling | 10% | | | Communication quality | 5% | |

Multiply each score by its weight and total the results. This method prevents the lowest price from automatically winning and ensures you evaluate the full picture.

Final Steps Before Signing

• [ ] Verify insurance certificates are current (not expired)
• [ ] Confirm the CCB license is active
• [ ] Get the contract reviewed if the project exceeds $25,000
• [ ] Verify the payment schedule aligns with project milestones
• [ ] Confirm the start date and estimated completion date in writing
• [ ] Ensure the warranty terms are documented in the contract

For a complete project planning framework, see our commercial paving project planning checklist.

Get a Transparent, Detailed Bid from Cojo

Cojo Excavation and Asphalt provides detailed, line-item bids for commercial paving projects across Oregon's I-5 corridor. We specify every material, every measurement, and every step of the process so you know exactly what you are getting. Check our portfolio to see our completed commercial projects, and review our company background to learn about our qualifications.

Call 541-409-9848 or request a detailed quote.