My husband and I own 2 construction companys,A letter would really be nice because they took time to give you a price,and to visit,majority of people just dont bother.
Also dont always go for lowest bid,They didnt tell you something,spring bills on you during the job etc.

BD thank you. We have clearly told each contractor what we expect even down to the number of recessed lights and outlets. We are finding the one contractor is giving us more on allowance items so that's making the difference in the amounts.

I'm surprised that some people don't send out letters, truthfully I was wondering if that was enough.

$5,000 is nothing considering the size of the project. If the bids are that close I would go with the builder that has the best reputation and the strongest financials. You could also ask for contracts from both and compare those...the contract details often uncover "gotchas" that will cost a lot more than $5,000. Is either willing to do a time of the essence clause and late penalties? Who pays for clean-up and snow removal? Who pays to heat the building, electrical, etc., during construction?

I do RFPs as part of my job and generally provide notice to the losing bidders on the phone and then follow-up with an email. I also always provide an explanation of why they lost.

Sue yes we are taking all of that into consideration. The builder who is $5,000 lower has the best reputation per say because he has been in business for 30 yrs now and the other contractor has been in business for 7.

I was just trying to get some ideas how to word and prepare a letter to the contractors who were not chosen.

Thanks!