Quotes for the same job can be thousands of pounds apart, and that usually does not tell you who is too expensive. It tells you the quotes do not promise the same thing: scope, provisional sums, labour rates and materials spec. Four causes, all four checkable, and a fair way to compare.

On the third of those, the published rate guides disagree with each other and in places with themselves, so a labour figure in a quote is harder to judge than it looks. The day rates overview shows the full spread per trade, and why the days matter more than the rate.
The classic trap is choosing on the total alone: a single lump sum without itemised lines makes checking impossible and makes changes expensive later. Always ask for an itemised quote with quantities and unit prices; a professional who resists that rarely does so without a reason.
No quotes yet? Know your range first with the free cost calculator, and plan the money side with how to pay for a renovation; paying per completed stage is your best protection whatever the quotes say. Chosen a builder? Nail the agreement down with the contract checklist before you sign.
Four causes explain nearly every gap: the quotes do not cover the same work (scope), uncertain items are entered as provisional sums or PC sums that shift the risk to you, labour rates and how busy each firm is differ per trade and region, and the materials specification differs. A big gap usually means you are comparing apples with pears, not that someone is dishonest. Make the quotes comparable first, then judge them against an independent range.
An amount the builder reserves for something not yet decided, such as the tiles or sanitaryware you still have to choose. If the real choice costs more, you pay the difference. Two quotes with different provisional sums cannot be compared until you level them: ask what each sum is based on and what happens if it is not enough.
Not automatically, but a price far below both the other quotes and an independent range is a warning sign rather than a bargain. Common explanations: missing scope (waste removal, making good, scaffolding), a tight provisional sum, or the job was simply misread. Ask before you sign.
Also not automatically. A full order book, employed staff rather than subcontractors, longer guarantees or a more complete scope explain a higher price honestly. The difference just has to be visible in the lines of the quote, not in vague words.
Three is the practical standard: enough to see the spread, few enough to read each one properly. Ask all three to price the same written description, otherwise you build the first difference in yourself.
Sometimes. A VAT-registered firm quotes 20% higher than a small trader under the registration threshold for the same work. Check whether each quote says including or excluding VAT before you compare anything else; an "ex VAT" total next to an "inc VAT" total is a fifth of the price in hidden difference.