The title sounds pretty ominous but really it's pretty straightforward. You want to get prices for a product or scope of work to compare and get the best deal! Sounds simple.........................but wait:-)
My first example is the lumber package for our house remodel. This a pretty identifiable portion of the project. We want a price for all the wood structure for our project. Lumber suppliers are set up to review your house plans and do a "take-off' which means estimate the materials and give you a price. Obviously different people may "estimate" differently so there is a chance for inconsistency there, plus if the drawings are unclear that will add chances for confusion or error.
As you can imagine there are many other possible variables that can happen that make it challenging to compare each supplier "apple to apples". In the end we had two suppliers within $300 of each other which is very close. As I dug into one of the estimates I found numerous mistakes, misunderstandings, etc and by that time I was done reviewing the estimates, the one supplier was almost 15% more! Needless to say we went with the second supplier :-) An interesting point to remember is that each lumber supplier was providing "estimates" so if they were in error and we needed say 200 more 2x6s I would pay for them anyway. This makes reviewing the estimates very important.
My second example is brief but noteworthy. We needed to pour the interior and back patio slabs prior to starting framing. I contacted the original company that bid the job when we got our construciotn loan to get an updated bid. In speaking to them it became apparent that we were not in sync on the actual scope of their work. I clarified this and they rebid the project at almost 3x their first bid! When I called them in shock to ask for a little breakdown of the costs they were uninterested in doing so. I was not talking much detail just concrete, labor, and materials would have been fine. I decided then and there that they were not the company for me! Through a contact I found another concrete firm that bid the job and came in just a little higher than the original number. Considering the original number was missng a few things this made sense and I went with the second firm, which came out promptly and did some great work!
So here are some pointers about soliciting and reviewing bids:
1. Make sure the scope of work is clear and understood. Accurate drawings and followup discussion help this.
2. Different bidders will delivery there numbers in different formats. If you are trying to compare clearly, see if you can get them to use a standard form that breaks down the bid in a way you want to see it.
3. If you feel like you are getting ripped off, you probably are! Common sense goes a long way, as well as asking questions. There is not stupid questions and a good supplier/contractor will have no problem answering and clarifying their work.
4. Comparing $ and scope is key but make sure it is really "apples to apples".
5. The lowest number is not always the best. The old adage, "if it sounds too good to be true it probably is" really holds. Low bidding and then trying to make it up with cost changes later is common.
6. And we could talk forever about the quality of the work necessary. This is a hard one. I like referrals from people I know and trust. If that isn't possible get references, check for online feedback, look at work they have completed, etc.
7. In the end it is all about time and money. Are you getting what you want, for the price you want , when you want it?
Of course I could probably have 1000 bullet points but you get the idea. Common sense prevails. Know your scope, shop around, compare apples to apples costs, ask questions and most importantly ask the question, "Are you comfortable working with this person/firm on your home?". If not keep looking. In today's economy you should have lots of options
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