Take the Best Bid for a Construction Project, Not Just the Lowest Bid.

It’s been said that when you accept the highest bid, you risk the amount that is the difference between it and the lowest bid. This of course assumes that the end products would be equal. In reality, if you accept the lowest bid, you risk the entire cost of the project because it might not be done properly.

I’m not suggesting that you spend more than you can afford, just that you need to balance budget and long term factors. An addition of any type to your home should be an investment in your quality of life. If you can’t use the space as often as you anticipated or have to repair or replace prematurely, then that investment is not as valuable.

Besides the obvious differences between contractors such as poor design, using inferior materials or less skilled carpenters, there are other factors that might allow them to offer a lower bid. They might label it overhead, but it could be something like insurance. If another part of your home gets damaged during construction, who is liable? What if a worker gets injured or subcontractors don’t get paid? Without liability insurance, workers compensation insurance and lien waivers, YOU, the homeowner can be liable.

Another thing to consider is whether the final price will equal the bid. During construction, there are often “surprises” or items that were not anticipated by the homeowner. Be sure to ask questions! Is the bid firm? What if they “forget” to include something? What if they find rot or other problems? Would you rather the carpenters just cover it up or bring it to your attention even though you might incur extra cost?

The important factor here is TRUST. Choose a company you can trust to communicate with you and do the job right. Personal referrals and visits to projects completed by the contractor are your best bet.