What Should You Expect to See in a Construction Proposal?

When you are interested in having an addition built onto your home, you should contact several companies for bids, but what should you be looking for when you get them? Before you even get the proposals, you should take into consideration any rapport you felt with the builder or salesperson during the initial visit. This person will generally be your contact during the process so things will go much more smoothly if you feel a sense of trust and comfort with them. In addition, you will want to consider the reputation of the company as well. Here is a general list of things to look for in your estimate:

Fixed price – Even if there will still be variables to be decided, having a number and an indication of what is and isn’t included is critical. Depending on the project, sometimes it’s wise to agree on Time and Materials billing, but you’ll still want to have the rate specified and a good faith estimate. Payment terms should also be outlined. What amount or percentage of the project cost is due at what stage? You certainly should not pay the entire amount up front. This is a sign of a fly-by-night operation!

Sizes & Measurements – While getting an actual measurement to the inch might not be possible before architectural plans are drawn up and the ground hasn’t been broken, you’ll need something to verify that your addition is 20’ so you don’t end up with something that is only 10’. The description of the project and possibly a sketch or drawing should give you a good idea of what they are proposing.

Materials – This may be the biggest differentiator in price. When comparing bids, be sure that you are comparing apples to apples. For instance on a deck, the price will vary quite a bit from treated lumber to cedar and from one composite to another. Also, be sure they are quoting materials that will match and/or complement the existing materials on your home.

Details - The details can make all the difference, both in quality and in price. You don’t want to be surprised later that light fixtures, appliances, paint or anything else wasn’t included. Things like brands, colors, and styles can be chosen later, but be sure that what you want won’t be over what was budgeted for. Be sure quantities are specified. How many electrical outlets, fixtures, coats of paint?

Timing – When will they start? How long will it take? Variables such as weather and permit and material delivery delays can and will delay the schedule, but you need to know approximately how long a project will take to complete. You don’t want to assume it will take three weeks and have them still at your home six months later.

Warranty, Lien Waiver, and Liability Insurance Information – These things may seem like something to worry about later, but it’s important to know they are available and in place because they protect the customer. They are all things you want to be sure you have in writing too.