Hiring a Contractor: How to do a correct estimate comparison?

Are you comparing apples to apples? Looking at construction project estimates. 

How many times have we all heard the words, “I can do it for cheaper”? In these cases it is important to know what is being talked about. If it’s coming from someone with extensive experience in construction and do-it-yourself is an option, then of course DIY will be the most economical option in that scenario. However, if the conversation is about another contractors official estimate, then we need to further assess the situation to determine if the price difference is truly a bargain or a money trap.

DEFINING THE PROJECT PARAMETERS

First, gather all relevant data and information about the items or scenarios you want to compare. Ensure that the data is accurate and up-to-date. If you have a set of plans with well defined parameters, that will be a good starting point for the comparison. It could be that one of the bids for the job has a calculation error, and when the true measurements are revealed in the process of construction, the estimate will have to be adjusted, because the written estimate will have specified quantities. Scope of work needs to be well defined in any estimate. If materials used for finishes, like fixtures, vanities, flooring, etc., are not well defined, then the cost can range greatly, and skew the estimate in favor of the contractor using lower quality materials. That might not be in tune with the vision of the customer. Most customers want quality products to be used in their renovation or construction project. Products that will serve them for years to come. In order to avoid comparing apples to oranges, utilize allowances for materials you have not defined yet, such as siding, shingle, stone, brick, any other external cladding products, flooring (carpet, hardwood, laminate, luxury vinyl plank), countertops, electrical and plumbing fixtures, etc.

COST

As we have mentioned before, everyone wants an affordable, well budgeted project, but there are also other factors to consider: time, quality, efficiency, communication and trust. Unfortunately we hear many stories of contractors or people claiming to be a licensed contractor take money from clients and disappear. After investigating such scenarios, it turns out that the only reason that business or contractor got hired was because they had the lowest bid. To avoid this happening to you, please do a through review of credentials of the contractor you’re looking to hire. More on this in our previous blog post “What to consider when hiring a contractor?”.

TIME FRAME

Time is also a big factor to consider, especially important in projects like water damage remediation, termite remediation, etc. The longer the damage is lingering the more time it has to grow and the cost of remediation with it. Sometimes waiting for a company to do remediation not only cost you emotionally, not being able to utilize the space effectively, but also financially.

QUALITY

Quality takes time! Have you heard this saying before? It is true, to ensure quality, extra man hours are spent perfecting the project. Painting for example, if the prep work is not done well; patching the holes, sanding down imperfections, and taping off fixtures and floors, you might end up with a mess on your hands. A good way to gage quality is to ask for references, pictures of previous work, or to visit an active job site. Keeping in mind that since quality takes time, it will also be reflected in the price.

COMMUNICATION

Communication is key. We at VMH Construction have policy in place regarding communication practices. A call to be returned within few hrs. Text messages to be responded to within the same time frame. Emails have a 24hr turn around window. When talking to our clients and neighbors, we are shocked at the comments like, “I’ve called multiple contractors for an estimate, and you are the only one that called back”. If the opportunity for a sale elicits such a response, think about what it will be like if the project begins and you can not get a hold of the contractor. Is that worth the few hundred dollars of savings when choosing a contractor with poor communication practices? Most clients will say, it is not.

TRUSTWORTHINESS

Trust, how do you put value on trust when it comes to building a new construction that will be your forever home, or remodeling your existing home? No matter how good and budget friendly an estimate is, it means nothing with out trust. How do you gage something like trust? This is a metric that is multi-faceted. Does the contractor do what they said they would do? If they said they are coming for an estimate at 9am, do they show up at 9:25am without any explanation or calling ahead? Follow through is crucial when building trust. Do they have credentials necessary for completion of your project? License and insurance. Can they provide references upon request? All these things contribute to the impression left on a client and has an impact on building trust.

By following this guidance, you can conduct a accurate and fair estimate comparison, leading to more informed and reliable decisions.