The Bids Are In!! Why Are They So Different?
Things aren't always what they seem. I have come to learn that this is a very true
statement. If you've shopped for airline tickets lately, you know what I
mean. I recently booked a trip to Chicago
for the National Kitchen & Bath Association. After seeing some low fares on line, I
figured my family could tag along and we could stay with my sister in the city.
As I surfed the web, all different specials
started popping up. It wasn't until I made the commitment that the hidden fees
surfaced such as fees for bags, fees to choose your seats, fees for carry on
luggage, taxes and surcharges, etc. Wow, did that trip get expensive! Luckily, we
didn't check any bags for our long weekend adventure and had a great time in Chicago. But, understanding when you're comparing apples
to oranges can help upfront and even save you money.
In the remodeling industry, 2009 was the year of the
bid. Never before had we seen our
customers reaching out to so many contractors looking to compare bid
pricing. To their surprise, contract
bids were coming in all over the board with prices differing by as much as 30%. Because everyone is so cost conscious and
rightly so, many times, the lowest bidder got the job. But was it really the lowest bid or best
value? Many contractors are out there
planning on how to win your job where the reputable contractor is planning on
how to build your job and win you as a customer for life.
At the time construction drawings go out to bid there are still
many unanswered questions for a contractor if he hasn't worked with the client
from the design stage. If the
contractor's sole purpose is to win your job, he will price out the least
expensive option on unanswered items thus giving the client false cost savings
from the start. For example, if your
home needs to have outdoor trim replaced, a contractor looking to win a job
would quote it using pine - a standard industry material for outdoor trim. However, if the contractor is looking to build
a client for life, he will educate the customer on choices that will build
lasting value in their home. So for
trim, a reputable contractor would discuss the options with the homeowner
explaining that pine will last minimally a couple of years before rotting versus
cedar which is more expensive upfront but will last for years -adding value to
your home.
Another more expensive example is when a new heating system
is called for on a plan. A contractor
can put a cost of $10,000 or $40,000 on the bid depending on the system. At this point in the process, the homeowner
might not even be aware of the types of heating systems and their cost. So when
the bid comes in and there is a price difference of $30,000, it appears that
one contractor can really save the homeowner money. When
the job is awarded to the contractor with the lower bid, that contractor then
has to go over all the choices and selections with the homeowner and job costs
start to increase because these options were not discussed at the onset. It is at this point that the change order is
introduced and the job price starts increasing after the contract has been
signed. Nine out of 10 times, the
project winds up costing what reputable contractors estimated in the
beginning.
If you are interested in how TR Building & Remodeling
can give you a solid bid that is a contract price, please call us at 203-664-1303
to schedule an appointment. We look
forward to hearing from you!
Sincerely,
Todd Drury
TR Building & Remodeling, Inc.
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