How to Get a Low House Repair Bid
When it comes to renovations and repair jobs, homeowners often struggle to find a contractor who can perform the work at a low price. Because of the complexity of many projects, homeowners may also have difficulty comparing contractor's prices to one another. Fortunately, finding a low house repair bid is possible even if you know nothing about construction itself. By managing the bidding process correctly, you can find the lowest qualified bidder and get your home repair project completed according to your budget. Does this Spark an idea?
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Instructions
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Get at least three bids. By having more than one bid, you'll be able to get a fairly accurate idea of what the work should cost. If the three prices are relatively close, you can usually feel safe taking the lowest bid. If one of the prices is much lower than the others however, it's important to evaluate the contractor carefully before blindly accepting the lowest bid. Suspiciously low bids usually mean inexperienced contractors, or may mean that he or she will use inferior materials.
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Provide a detailed scope of work. This helps your bidders understand exactly what items should be included in the price. For instance, if you want outdoor lights added to your backyard, the scope of work may include laying wires from the panel to the lights, obtaining applicable permits, digging holes for installation, purchasing the lights, then testing them to make sure they work. By giving a detailed scope, you take the guesswork out of bidding. This allows contractors to provide the lowest and most accurate bid possible. It also allows you to compare various bids more easily, knowing they all include the same work.
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Allow bidders to view the project site. If a contractor is bidding on a job without building plans, he or she may include quite a bit of contingency money in the price. This is done to protect the contractor from unknown conditions. Rather than requesting bids by phone or fax, find contractors willing to come look at the project or your home before providing a price. This may also help alert you to potential budgeting issues in the event the contractor spots a problem.
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Get all bids in writing. Ask that contractor's provide not only pricing, but a list of specific inclusions and exclusions. When comparing various bids, look for items that may be shown on one bid and not referenced on others. Call you contractors and ask about these items to find out whether it's something you may need or not need. Ask that any changes or clarifications are added in writing in the form of a revised bid.
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Negotiate. If you find a contractor you really like, but he or she isn't the lowest bidder, ask them to take a second look at their price. Let them know you'd like to hire them, and tell them what your budget is. In many cases, the contractor will work with you, and may cut their price a bit to get the job.
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Ask for value engineering options. This is a popular concept in the building industry, and simply means having the contractors suggest ways to modify your project scope to bring down the budget. Because they are more familiar with material and labor costs, they are usually able to offer suggestions that make only minor changes to the finished project, but may dramatically effect the price. For instance, if you've received three bids for adding hardwood flooring to your home, and all are way out of your budget, the contractors could provide pricing to use reclaimed or engineered flooring instead. This would give you the look of hardwood at a fraction of the price.
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Tips & Warnings
Before hiring a contractor, ask for a copy of his or her contractor's license and certificate of insurance. If you allow an unlicensed or uninsured contractor to work on your home, you are exposing yourself to a great deal of financial risk.
Never pay a contractor the entire contract balance upfront. It is generally accepted that homeowner's pay 1/3rd of the contract value at the start of the project, which allows the contractor to purchase materials. At least some portion of the total value should be withheld until the project is 100 percent complete and all issues are resolved.
References
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