Construction Bid

How To Compare Construction Bids And Quotes

The first step in getting a realistic construction bid is to be absolutely clear about what you want done. The more ambiguous your description and ideas, the more safety margins the contractor will attempt in order to avoid hassles later. Give your contractor as much detail as possible, in writing, to avoid miscommunication or overlooking.

Obtain construction bids from at least three people who have undertaken projects similar in size and type, to yours. This will give you a good range of pricing and a fair idea of what to expect. Be cautious of bids that are very low as they may be attempts to lure or show inexperienced handling.

Never reveal your budget to the contractor before you have obtained an estimate. Dishonest contractors may adjust their prices accordingly. The best process is to ask for a square foot cost. Experienced contractors can give you a rough estimate from a brief description of the expected work. This helps in deciding which people are beyond your range. 

When you are taking the three quotations from different bidders, go for an itemized list. This will help you to ascertain how the total price has been arrived at, whether anything has been overlooked and there will be unexpected costs incurred after the project has begun. You may also compare the item wise costs of bidders.

This type of quotation also lays down a clear basis for part payment. You know and pay for only the portions that have been completed or installed. It establishes a fair and mutually acceptable payment standard.

Insist on copies of insurance documents along with bids. In a bid to cut costs, many people placing construction bids are not really paying the premium and only say that they are doing so. Be careful of low bidders as not paying premiums may cost more money in the long run.

You do not have to choose the lowest bidder. Use common sense and your market research to judge a fair price and place the responsibility in the hands of a trustworthy and capable person, even if his bid is on the higher side.

Draw up a written contract with the final bidder. This will include your name address and personal details, his/ her details, work to be performed with tentative dates of completion of each sub-part of the construction project.

Be careful to include the responsibilities of demolition and cleanup, materials to be included and excluded, payment schedules and preconditions, and deposits if any. Normally, it is advised that you pay only enough to cover completed work and materials delivered at any stage of your project. In any case, whatever the construction bid, leverage your money to get things done in the quickest and best way possible.