Thursday, April 12, 2012

Apples To Apples vs Apples To Acorns


When comparing bids, it isn't the cheapest or the 'nicest' person you should select. You should understand why there are wide price differences. It could be there is a gap in your design that is interpreted differently by each contractor or what you have asked for, which means there may be arguments later.  If most of the bids are in line, and one is way high or way low, you’ll want to know why before dismissing or selecting them. For example, if you’ve asked for hardwood flooring the applications vary with selected hardwoods (nail in, click together, or glue) and the cost for install will differ. Are all bids for the same application? How about your cabinets? Are they custom built, off the shelf from the big box store, standard factory ordered? Are the boxes made of solid wood, melamine, particle board? Do they come with standard drawer glides or soft close? Believe it or not there are even grades of soft close guides to choose from.

A highly detailed scope of work is important because this is how you know what you are truly buying. What products are being used? HOW are those products being installed? Protect yourself and do your due diligence before eliminating bids only by pricing. On a major remodel, there are typically a few rounds of revisions before a final decision is made. With thousands of dollars at risk, why would you not examine all the details in comparison? There are a lot of contractors who have very basic proposals for a couple reasons: either they want some ambiguity so they have reasonable doubt should something go wrong, or it can be a tactic with low pricing to get their foot in the door knowing they can upcharge additional costs later.

A price-only decision almost always costs more in the long run.

A contract is just a statement of understanding and agreement. It can be changed as needed right up until you sign it. Ask lots of questions, if the answer isn't in the contract, add it. If you do not understand any part of the contract either have it reworded so you do understand it or have it removed; do not sign anything you do not fully understand and feel comfortable with.

Any contractor for improvement should contain a few key points including a highly detailed scope of work, pricing, schedule of payments, and unknown possible fees/contingencies. It's important to have everything out in the open as a protection to both the consumer and the contractor. Upfront communication is key to a well run jobsite and to meet your expectations.

Remember when you’re reviewing multiple bids are you really comparing apples to apples or apples to acorns? The difference can mean a great remodeling experience or a frustrating one.

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