Q: I’ve followed your advice and gotten three bids from different contractors who want to do my project. Now what? Do I just hire the one with the best price?
A: Those bids can tell you a lot about the contractors who wrote them—but they may not be very accurate measures of the total price each one would wind up charging for your project. Here’s why.
Unless you’ve given the bidders the exact scope of work / specifications for your job—in other words, drawings, materials lists, and product names put together by an architect or designer—the bids are at best educated guesses, says Cambridge, Mass., Realtor and renovation consultant Bruce Irving.
If you have hired a professional designer, the bids are likely much more accurate measures of what each contractor will charge, especially if their bottom lines are just a few percentage points apart. Always throw away outliers. Extreme low bidders are probably desperate for work and planning to cut corners on your job, and super high bidders are probably too busy to take on your project unless you’re willing to overpay.
“Look not only at the numbers but at how they’re presented,” says Irving. “Are they clear, organized, detail-oriented, and delivered when they were promised? Do they accurately reflect the nuances of what you told him you’re looking to do?” There’s no guarantee that a quality bid equates to a quality contractor—or that a sloppy one means you’ll get sloppy work—but it increases the odds. Look for a bid that thoroughly outlines every aspect of the job, that way, even without architect specs, you can see, in writing, exactly what he’s proposing to deliver—and charge you—for each part of the job. Once you sign the bid and it becomes your contract, if a question arises later about whether the price includes, say, installing stone or ceramic tiles, you’ll have his description to refer back to.
If you chose to have plastic surgery, you would thoroughly research surgeons, talk to prior patients, or at least review before and after photos of patients’ noses or chins before deciding on a surgeon.
So why wouldn’t you use the same due diligence when choosing a contractor to renovate, remodel or otherwise perform surgery on your house, asks interior designer Tyler Wisler of HGTV’s “Design Star.”
“I don’t think people realize how much work is involved in renovations,” says Wisler, whose father is a professional contractor. “I’m as guilty as anyone of [perpetrating] that myth. On “Design Star” we show a [complex home] problem that is fixed in 22 minutes. It’s not that easy.”
It’s a rare home improvement job that doesn’t have its share of hiccups– rotted floorboards, faulty wiring, leaky pipes – that invariably surprise the contractors and owners. And that’s why it’s imperative you invest the time for due diligence before agreeing to work with a contractor.
A contractor’s track record will likely also influence their bid. When you consider estimates, remember that a general rule of thumb for contractors to price a job at 1.5 times cost. That means if work and supplies cost $10,000, the contractor will likely give you a cost estimate of $15,000, report many construction experts including Construction Programs and Results. That extra money is not pure profit. Contractors must cover many costs from tools to advertising.
It’s human nature to want to secure the lowest price for your job, but think twice before automatically doing so, says Wisler. “Is it worth it to you to pay for a proven contractor who knows how to handle the hiccups that will develop,” he asks. “Finding an excellent contractor takes work. When you do find one, you want to hang onto them. Those trades need to be celebrated. There is a lot of work, knowledge and skill needed to do those jobs correctly.”
Here’s how to get competitive Apples to Apples bids –
Decide on job details. You have a general idea of the project for which you’ll engage a contractor – remodel a kitchen, retile a bathroom, or reconfigure a laundry room. Before you choose a contractor, it’s important to understand available options, such as specific flooring materials (reclaimed hardwood versus natural stone) or bath options (Japanese soaking tub versus waterfall showerhead). You’ll want to hire a contractor that understands the precise requirements for your specific job. Some homes aren’t as easily retrofitted with modern upgrades as others. For example, including a whirlpool tub in your renovation may require significant additional wiring, plumbing and even structural support work, to accommodate the new electrical, water and weight demands of a large spa tub.
Dig Deep on References –
Many homeowners ask family and friends for contractor referrals. They also follow online reviews from Yelp, Facebook and other online review providers. There’s nothing wrong with using those groups – in fact, some people swear by them. It is also wise to go further with references and ask the contractor for a reference list.
Choosing Your Contractor –
In any case, the estimated cost should only play a supporting role in your decision about who to hire. You should feel comfortable with the contractor and the contractor’s estimate should be detailed and never vague, you should have a clear understanding of what each of your responsibilities will be. To help the process, create a basic scope of work for your contractors, this way your bids are competitive and Apples to Apples, many contractors have their own design ideas which would offset the pricing in the thousands of dollars, by creating a scope of work, you will receive bids that are competitive and relevant to the work that you would like performed.
We hope that these tips help you in making the right decision for your home or business.
