| Step 1 - Organize your Ideas | | | | work? If so, have them revise the estimate. |
| One of the most important steps before you begin | | | | - Does the Estimate include having the Contractor |
| meeting with Contractors to work up estimates is to | | | | prepare architectural drawings, if necessary? |
| educate yourself about the work you want to have | | | | - Are they using lesser quality materials (paint, cabinets, |
| completed. The internet, library, neighbors, etc. are all | | | | tile, etc.)? |
| good places to start. | | | | - How long will it take to complete the work? |
| Your goal is to get several estimates or bids that are | | | | - Are they insured with a General Liability policy? |
| all based on the same scope of work; apples to | | | | - Can they provide a minimum of 5 to 10 references |
| apples if you will. You have to be able to provide the | | | | from previous projects? |
| Contractor with enough information so they can | | | | - Are permits necessary and if so, is the cost included |
| prepare an estimate that meets your goals and you | | | | in the estimate? |
| must provide each Contractor with the same scope of | | | | - Is the Contractor willing to let you visit several of their |
| work. If not, the pricing that you get from each | | | | jobs? |
| Contractor will be very difficult to interpret which could | | | | - What type of Warranty does the Contractor |
| slow you down and ultimately cost you more money. | | | | provide? |
| The last thing you want is a Contractor that is going to | | | | When it comes to interpreting a bid that may be higher |
| "Change Order" you until your pocket book has dried | | | | than your budget, you still have to ask all the same |
| up. So, try to finalize as many of the details as possible. | | | | questions. And just because the estimate is on the |
| This means that you, the Homeowner, must put all of | | | | higher end of the spectrum, don't assume that the bid |
| your ideas and scope on paper including photocopies | | | | is all inclusive. As a General Contractor, we have bid |
| of pictures, any layouts, designs, sketches, etc. And | | | | on and successfully completed several projects and |
| never give your originals away because you may not | | | | found out later that some of our competitors pricing |
| see them again. | | | | for the same work was 50-75% higher than ours. This |
| Step 2 - Schedule Meetings with Several Contractors | | | | can be attributed to higher overhead as well as a |
| Look for Contractors affiliated with the Better | | | | desire for higher profit margins. The bottom line is, you |
| Business Bureau, National Association of the | | | | don't have to overpay to get quality service and |
| Remodeling Industry (NARI), National Kitchen and Bath | | | | workmanship. |
| Association (NKBA), National Association of Home | | | | Step 4 - Select your Contractor |
| Builders (NAHB) or any other local building or | | | | After reviewing all estimates, it's time to narrow down |
| remodeling association. Look at each Contractors | | | | your selections to one or two Contractors. Call their |
| website to see what type of work they perform. | | | | references to see how well they did on previous |
| What are their specialties? And if they do not have a | | | | projects. Did they finish on time? Ask their references |
| website, you should be cautious if you decide to | | | | about the quality of work and if they would |
| contract with them. | | | | recommend them. Did they keep a clean and safe |
| As a Contractor myself, when we show up to a job | | | | job-site? |
| for an initial meeting with a Client, the most organized | | | | If they are a member of the Better Business Bureau |
| Homeowners hand us a typed copy of a basic scope | | | | or any other remodeling or construction association, |
| of work with copies of any pictures, layouts, designs, | | | | are they in good standing? Try to check. |
| sketches, etc. And we love them for it because we | | | | These are all good clues that will give you the inside |
| know exactly what they want! | | | | track as to whether this prospective Contractor will be |
| During your meetings with each Contractor, hand over | | | | the right choice for your project. You also need to ask |
| your information that you compiled and walk the job | | | | yourself if you feel comfortable with this person and |
| with each of them. Be prepared to answer numerous | | | | are they willing to openly discuss materials, methods, |
| questions. Some will be easy to answer and others | | | | and details regarding your project? |
| may need some additional research on your part. | | | | Step 5 - Execute the written Contract |
| Either way, try to stick with your initial scope of work | | | | Most often, the Contractor will provide their own |
| and do not deviate. You want the bids to be apples to | | | | Contract for you to sign. Be sure to read it carefully |
| apples and changing the scope during your meeting | | | | and do not hesitate to ask any questions for language |
| with the Contractor will only make it more difficult for | | | | that may need explanation or clarification. Ask the |
| you to interpret the figures on each bid. You can | | | | Contractor how the payment schedule will be put |
| always adjust the scope after the estimates are | | | | together. Never give a Contractor more than 50% of |
| gathered and you have narrowed down the potential | | | | the contract amount up front. If the Contractor has to |
| Contractors. | | | | purchase a large amount of materials prior to starting |
| Ask each Contractor how long it will take them to | | | | work, a payment or draw for the materials is |
| prepare the estimate and make sure they honor those | | | | understandable. |
| dates. If they don't, that should be a red flag. | | | | The payment schedule (aka Schedule of Values) |
| Step 3 - Review & Compare each Bid | | | | should be spelled out in the Contract. After a specific |
| This is where your initial homework starts to pay off. | | | | portion of work is completed, the Contract will say |
| Each estimate your receive needs to be in writing and | | | | how much money the Contractor can Invoice you for |
| it should have a specific scope of work that mirrors | | | | that work. For example, after all cabinets are installed, |
| the information that you provided them. And in most | | | | the Contractor can request a draw of say $1000 as |
| cases the estimate will have more detail. If the | | | | spelled out in the Contract. After the countertops and |
| Contractor's estimate is vague and lacking specific | | | | tile backsplash are both installed, the Contractor can |
| details relating to the work, this is a Contractor that | | | | request the next draw of say $3500 for this work. |
| you may want to pass on. If you accept an estimate | | | | And, so on. Be sure that the last draw equals 10% of |
| that does not specifically describe the work that the | | | | the total contract amount and do not pay this until the |
| Contractor is proposing to complete, you are leaving | | | | Contract is 100% complete. If you give the Contractor |
| yourself open to costly "Change Orders" at the | | | | their last payment before 100% completion of work, |
| discretion of the Contractor. It's not a good position for | | | | you could have issues with them completing the |
| you, as a homeowner, to put yourself in. So keep in | | | | balance of work in a timely manner. |
| mind, it's your responsibility as a homeowner to make | | | | The following items need to be included in the written |
| sure the Contractor has a complete understanding of | | | | Contract: |
| the work you want completed and it must be | | | | - Scope of Work |
| conveyed in writing on the estimate. | | | | - Design Selections |
| Once you have established that each estimate is for | | | | - If using Architectural Drawings, they need to |
| the same scope of work, let's now look at each price. | | | | referenced in the Contract |
| When it comes to remodeling, the saying "You get | | | | - Total Dollar Amount of Work |
| what you pay for" is a good guideline but it definitely | | | | - Construction Schedule |
| doesn't mean that a more expensive bid is your best | | | | - Detailed Explanation of the Contractor's Warranty |
| choice. For example, you could have (2) bids that are | | | | - Payment Draw Schedule |
| somewhat higher than your budget and a lower bid | | | | And now you're ready to take on your next |
| that may be a little less than your budget. Most of us | | | | renovation. It's going to be challenging, but it doesn't |
| would automatically consider the lowest estimate | | | | have to be cumbersome. That's why it is so important |
| initially but we have to figure out why that Contractor's | | | | to do your homework upfront and find the right |
| bid is much lower than the other two. Below are some | | | | Contractor that will meet your needs and turn your |
| questions you need to ask each bidder. | | | | dreams into reality. |
| - Did the Contractor omit a portion of the scope of | | | | Cheers! |