Creating a new house or remodel can be a long process, full of some twists and turns. It can occasionally be painful to your patience or pocketbook. At the end of the project, however, it is (hopefully) every contractor’s intention you are left with a space you appreciate and will enjoy for years. What does it look like at the beginning though? How does a successful construction relationship start?
The Estimate
The first step in the process is the estimate. It is a chance for a contractor to lay their eyes on your project and determine its feasibility and cost. The estimate is also a time for the contractor and client to judge the feasibility of their relationship as well. In most cases a contractor is there to learn about the client as much as the client is the contractor. A good contractor will use this opportunity to recognize the client’s individual needs through the process, determine how involved the client wants to be, and ensure there will be enough trust for a successful business relationship. After the actual consultation part of the estimate, they will go and figure the estimate, or bid price, and present it. With the thousands of components than may go into a project, it may take a week or two. After they deliver it, take time to review it, and ask any questions. It is always a good idea to make sure you and the contractor are on the same page. If you like the contractor enough, you may even be able to come to an agreement even if the original price was a little too high.
Types of Estimates
What is the difference between a bid and estimate, and why is it crucial to know the difference? If someone presents you with an estimate it means they BELIEVE they can do the work at this price, but do not guarantee it. A bid means they WILL do it for that price, but often has a lengthy contract to go with it. Neither one is necessarily better than the other, however, they do offer different securities to a client. A bid is a set price for work specifically described in the contract, meaning it will cost no more, and no less. An estimate, specifically regarding cost plus, typically allows the client to be more fluid in decision making, allowing them to get their desired product, which means it has the capacity to cost more, but also the potential to be less.
Things to Watch for
Clients beware! No matter a bid or an estimate, miscommunication (or an underbidder) can destroy a relationship before it starts. As you go through and read an estimate it is important to make sure you and the contractor are on the same page about your level of selections and scope of the project. For example, if the budget calls for a simple shower set up and the client wants a hand shower, rain shower, etc. that is an immediate one-thousand-dollar difference. Even worse, some contractors will intentionally budget for lower quality materials in order to get the contract. No matter who you use it is important to double check what the estimate is for.
In close, it is important to be informed, not only at the start of a project, but also throughout it. Understanding all the facets of an estimate and getting off on the right foot is crucial and is a great time to tell if you have found the right fit.