Why obtaining multiple bids on your remodeling project doesn’t add up!
By Ann Rodrigues, David & Goliath Builders / DG Remodeling
Are you thinking about remodeling your home and you have been told to obtain multiple bids? Before you embark on the path of getting multiple bids remember that an addition to your home, a kitchen remodel, a bathroom remodel or a whole house remodel is more than just a number. It is something you are going to have to live with and live through. Your home is your largest investment so you want your remodeling project to be done right, without a lot of headaches, setbacks, or cost overruns.
Competition is good, right?
Many people believe that the reason they are obtaining bids is to give them a way to compare companies, but bids don’t really do that. They compare price. As a consumer, you can have two of three things: quality, service or price. A company cannot offer the lowest price and maintain quality and service. Something needs to be sacrificed to be the lowest bidder. When comparing the bids it will be your job to figure out what exactly is being sacrificed.
What could the low bid be missing?
More than likely, the lowest bidder has sacrificed design, is using lower quality materials, is using substandard workers, or they may have made a mistake in their bid and forgot to bid everything. Even worse they may have done so deliberately just to be the lowest bidder on the job. One of the tricks to be the lowest bidder is to put a lot of allowances in the bid. What is an allowance? It is an amount put in the bid to allow for a certain item. If the material chosen exceeds what the allowance amount is, you will have to pay the difference.
Creative design verse price.
There is no way to compare bids unless you are comparing the exact same design. Most remodeling companies are design/build based. They come to your home, meet with you, listen to your wants and needs and then come up with a design to meet those objectives. More than likely, no two designs will be the same. So how in the world could you compare bids? The lower bid will also be the simplest design. Design tricks to reduce cost are to draft plans that utilize the least amount of cabinets, windows, countertop space or materials in general. The most functional and creative spaces will not equal the lowest price. Design most definitely will be sacrificed in the lowest price!
As you can see, shopping your remodeling project on price alone is a big mistake.
It is unwise to pay too much, but it is worse to pay too little. Your house is your largest investment — make sure you protect its value. After all, when you pay too much you lose a little money, that’s all. When you pay too little, you could decrease the value of your home. The common law of business prohibits paying a little and getting a lot — it can’t be done! Remember you always get what you pay for.
Find a remodeling contractor you can trust and work with, one that is reliable, dependable, and stable.
Instead of trying to compare bids, do your homework.
- Look for a company that is properly licensed.
- Make sure they are members of a professional trade association.
- Check with the Better Business Bureau.
- Ask to look at their work.
- Ask for a reference list.
- Call their references.
- Do they have a place of business?
- Do they provide design services?
- Do they have a selection center
- Will they help you make material and color choices?
- Do they have good product knowledge?
- Are they certified, designers?
- Do they use good subcontractors?
- Do they have any of their own employees working on or overseeing the projects?
And most important are you comfortable with the people you are working with? Then choose one remodeling contractor and work with them for the long haul. Remember, the best relationships are built on trust and mutual respect—NOT PRICE!
Ann Rodrigues is one of the owners of David & Goliath Builders and DG Remodeling. Learn more about Ann Rodrigues and David & Goliath Home Builders and DG Remodeling.
