Wednesday, March 6, 2013

Evaluating Bids

Industry groups recommend that you get a written estimate from at least three contractors. An estimate should detail the work to be done, the materials needed, the labor required, and the length of time the job will take. Obtaining multiple estimates is a good idea. An estimate can evolve into a bid—a more detailed figure based on plans with actual dimensions. Seeking more than one bid will increase your odds of paying less. Once agreed to and signed by you and the contractor, a bid becomes a contract.


The cheapest bid isn't always the best. Homeowners who accept a rock-bottom bid may wind up less satisfied overall than those willing to pay more. One bidder may be using smaller-diameter copper tubing or cheaper tile. He or she may also be bidding on exactly what you say you want, without making it clear that your pre-World War II house may also need new wiring and water lines, which will cost extra.

Make sure all bidders are bidding on the same specifications and job description. Take the time to choose materials and fixtures yourself, since you may not always like or agree with the contractor's selections. The term "comparing apples to oranges" may well have been invented during the bidding process.

Know your plans. It can be costly to change job specifications after the work has begun. Revising your plans can add substantially to cost overruns, with changes resulting in lengthy delays. A less-than-straightforward low bidder is counting on these changes to make the job profitable.

Source: Consumer Reports

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