It has long been recommended to get three bids for any home project. Although that is sound advice for simple and straightforward projects (such as replacing a light fixture or toilet) it may not be sound advice for more complicated remodeling where the scope of work is not fully defined yet. A project with more than a few variables can have wildly different outcomes and soliciting bids without detailed drawings, a detailed scope, and specifications will likely result in bids that are all over the map.
Historically, a homeowner and/or property owner would contract with a Designer or Architect to define the scope of work and draft a set of construction plans. The plans and specs are then given to the builder to execute but the builder has little design input. This “design and then build” process is still typical in new construction, extremely high-end projects, and in commercial projects. The criteria for the builder in these projects are well defined and documented. It is recommended and sometimes even required that multiple bids are needed for these projects.
Over the last 30 years, there has been a shift from hiring architects and then finding a builder to hiring Design+Build remodeling companies. Design+Build companies are designers/architects and builders all under one roof. They are both contractor and designer, which has many benefits. The process now involves the Design+Build contractor meeting the homeowner at the beginning of the process and looking at the home. The contractor will often discuss ballpark budget goals with the client at this point to make sure it is a fit for both parties. Unlike a “bid” in the historical builder model, these “ballpark numbers” are loose budgetary framework based on initial observation and conversation. They are meant to guide the design process until plans and scope are solidified, at which point a quote can be developed. Comparing these ballpark budgets between firms is not productive.
What does it take to get an accurate estimate?
An accurate estimate involves much more input and usually requires a fee for the design work and estimate. While preparing an estimate, the contractor will come and take exact measurements and make note of details such as electrical, HVAC, and plumbing. They will make note of any municipality or state regulations that may challenge the project. They will require details on materials or create allowances (which carry another degree of risk). They will solicit current pricing for materials and review the project with specialty trades to obtain quotes for their portion of the work. An accurate estimate may take tens of hours and many days and requires a deep level of knowledge.
Although getting multiple estimates is not a bad idea, using pricing as the primary or even secondary determining factor is! Be aware some of the most sought after Design+Build firms are very busy and will disengage if they feel the client is “shopping around”. The best ones won’t produce any kind of estimate for a project still in the ‘idea’ phase. The determining factors in choosing a contractor should be communication, experience, temperament, competency, and trust.
How to spot a shady contractor
There are many good contractors in the Design +Build world, but unfortunately, there are shady contractors as well. How do you know who to trust? Who is telling the truth? At times, it can seem impossible! Here are a couple of things to look for: A common practice of a shady contractor is to provide a low initial estimate, then once the walls are open they inundate the homeowner with “necessary” change orders that keep inflating the final price. Generally, these contractors do not review possible issues before the contract is signed and then surprise the homeowner with “unforeseen problems” (added cost of moving plumbing, electrical and such). Another common practice is to fill an estimate with allowances that are much lower than what is actually needed for the items listed, resulting in more change orders. If a contractor offers to get started and design ‘on the fly’, you should walk away quickly.
I’m not suggesting you shouldn’t expect any surprises (every day in remodeling is a surprise), or that there aren’t times when an allowance is needed. I am saying that you need to find a contractor you can trust not to use it to their advantage. I like to think of myself as one of the good guys in the Design+Build world.
Instead of getting three bids, have conversations with three contractors. Do not use the initial ballpark pricing as your main criteria in selection. Feel comfortable talking to your contractor and asking questions. Your relationship should be based on trust but be backed up with a well-documented contract.
The age-old advice should be updated from “get three bids” to “interview three contractors and determine who you can trust and communicate with”!
