You've taken all the necessary steps to select the perfect contractor for your upcoming project. After researching each company, gathering reviews or referrals, and requesting bids from multiple contractors, it's time to analyze the bids. Contractors can present vastly different bids, making comparisons challenging.
Differences in contractors' interpretations of project requirements, service levels, and materials can contribute to the discrepancies. Identifying common scope gaps and exclusions is crucial as they may reveal overlooked items. These gaps pose a challenge in understanding the value you'll receive for your investment.
Here are some tips to maintain your peace of mind while deciding who should handle your project:
Focus on Consistencies and Inconsistencies
Not all items, products, and services are the same. Look for significant cost differences among bids.
A bid that is unusually low might not cover all the required work, leading to unexpected costs later on. Conversely, a high bid could indicate unnecessary work.
Check if They're Attentive
Evaluate bids to see which one comprehensively covers the work scope and addresses your concerns.
A detailed estimate that focuses on your priorities indicates that the contractor is listening attentively.
Make a list of questions from the bid review and contact the contractors for clarification.
Note which contractor is easily reachable and responsive to your inquiries.
Collaborating with a contractor who pays attention to your requirements is crucial.
Assessing Material Quality
Ensure that the outlined materials are of high quality and align with your project's scope.
Determining material quality can be challenging if you're not familiar with the industry, so some research may be necessary. You will want to confirm the materials itemized in the bid are of high quality and are of the aesthetic you are looking for.
Red Flags in a Contractor's Bid:
As you review contractor bids, you’ll also want to be on the lookout for anything that smacks of unfair practices — or worse yet, a serious scam. Here are a few red flags to look out for as you collect and assess contractor bids.
1. Upfront payments: Other than for the initial deposit, you should only pay for completed work. These "progress payments" can be tied to certain benchmarks, such as the completion of concrete work, post installation, etc. Payment schedules on smaller projects can be spaced evenly over the course of the work. In all instances, the final percentage should be held until after every aspect of the project, including the project wrap up, has been completed.
2. Cash payments: If your contractor demands cash, it's likely a scam. Pay by check or credit card for smaller projects or arrange financing for larger ones. Many professional contractors are able to provide financing options with reputable banking institutions.
3. Lowball bid: If it sounds too good to be true, it is. In this case the contractor will be cutting corners or is throwing down a low bid to get the job — fully expecting to hit you with multiple, costly change orders once work begins. Toss this one out.
4. Over-the-top bid: On the flip side, a bid that is excessively high can signal a contractor is not being mindful of your budgetary concerns. It is advised to speak with the contractor to determine why their bid is so high. If they address your concerns and can be responsive to your budgetary needs keep them in the running. However, if they are unable to explain their pricing or unwilling to negotiate it may be an indication that they are not interested in taking on the project at that time.
5. Lack of transparency: Details of the scope of work needing to be done, showing what materials will cost separate from labor and any additional contractors fees, providing a comprehensive run-down of agreement terms, payment schedules and options, etc. These are all items needed for full transparency. Any bid that does not include these or contractor who is not easily willing to address these in an edited version should not be considered.
6. Unrealistic timelines: Do not let magical thinking (and your desire for a rapid turnaround) cloud your judgment. Construction work takes time, even more so recently with delivery delays and shortages.
Most important factor is working with someone you can trust to deliver the best possible outcome within the scope of your budget and, if the bid is higher than your ideal budget, your contractor is able to provide details as to why the increase is necessary.
At Sunno Construction, our commitment is to offer clear, comprehensive bids. Our estimators are always ready to promptly and effectively address any questions or concerns and strive to work together to achieve the highest quality results. We choose to use high quality materials as they are the optimal choice for the project's success.
We aim to be your reliable team throughout the process! Give us a call or submit a request form today to get your free estimate!
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