| The design work is complete. You have a set of | | | | competitive bid scenario. It's a formal process. The |
| plans and a building permit in hand. The only thing that | | | | plans and specifications are complete. The bids must |
| stands between you and the long anticipated remodel | | | | be formatted in a standardized form. This allows for |
| of your home is the need to find a qualified | | | | an apples-to-apples comparison between bids. The |
| contractor. Someone you can trust with one of the | | | | opportunity to bid is open to all qualified bidders. This |
| largest purchases you may ever make after your | | | | assures quality for the customer and a level playing |
| initial home purchase. In this article I'll outline what I | | | | field for the contractors. It's required that ultimately |
| feel is the best method for ensuring success when | | | | the bid must be awarded and that it must be |
| you hire a contractor for your remodel project. | | | | awarded to the lowest bidder. When the bid is |
| In California, the state that my remodeling company | | | | awarded it's required that that the information be |
| is based in, the Contractors State License Board | | | | made public. However, the residential remodel market |
| (CSLB) of the Department of Consumer Affairs is | | | | lacks these requirements and typically uses less |
| the agency that licenses and regulates contractors. | | | | formal bidding scenarios. Coupled with the frequent |
| Their website is an excellent reference for | | | | problem of incomplete plans and specifications this |
| information regarding good practices and the status | | | | can lead competing contractors to submit bids that |
| of contractors. You can look up a contractor by | | | | vary widely in their format. This will make an |
| name or license number on the CSLB website. It will | | | | accurate comparison of their bids difficult, sometimes |
| show if they have a bond and workers compensation | | | | impossible. |
| for their employees. These are required. If there has | | | | Obviously, the work to create bids is time consuming |
| been disciplinary action, that will also be documented. | | | | and expensive. If there is no direct compensation for |
| If your project will take place outside of California | | | | this expense then it becomes an overhead expense. |
| check with your local state government to see if an | | | | Overhead expenses are recovered through the |
| equivalent agency exists. At the very least check | | | | contractor's invoices to their customers, which are |
| with the Better Business Bureau in your area to see | | | | based on their rates. The higher their overhead, the |
| if there are any complaints against the contractor | | | | higher their rates. The more expenses they absorb |
| you would like to hire. | | | | by offering "free estimates", the higher their rates |
| There are some other qualifications that are | | | | must be for recovery. The result is that the |
| important. How long has your contractor been in | | | | contractor's actual customers subsidize all of this |
| business? How long will they remain in business? It's in | | | | bidding, including bidding for the contractor's |
| your interest for your contractor to remain solvent | | | | prospective customers who never hire them. An |
| throughout the course of your project and for many | | | | alternative that I prefer is to ask each customer to |
| years to come. Many contractors have failed | | | | pay for at least a portion of the expense of their |
| mid-project leaving the owner with a dismantled | | | | cost planning. Applying this approach allows my |
| home and the challenge to find a new contractor to | | | | company to remain price competitive while offering |
| take over. If something fails after the job is finished | | | | the highest level of product and service. I encourage |
| you'll want your contractor to be available to fix it. If | | | | owners to interview a number of contractors, check |
| there's an accident or failure during or after the | | | | their references, and then hire the most qualified. |
| project it may be important that your contractor has | | | | It is to your advantage to retain your contractor as |
| liability insurance to cover it. Liability insurance is | | | | early in the process as possible. They can help you |
| voluntarily and carried by qualified contractors. | | | | and your architect with technical and pricing |
| Regarding the conventional wisdom to "Get at least | | | | information that inform your aesthetic, budgeting, and |
| three bids" I only endorse this when you need a | | | | scheduling decisions. A further discussion of this |
| discreet home repair such as a new roof, a paint job | | | | approach can be found in "The Well Built House" by |
| or some doors and windows installed. In this case the | | | | Jim Locke and on our blog, "Trade Secrets", see the |
| scope of work is clear and it's relatively simple for | | | | link below. I realize that this approach lacks the |
| various specialty contractors to provide | | | | "advantage" of directly comparing the price of the |
| apples-to-apples bids. If your project involves a | | | | project between contractors. I think it's a stronger |
| number of trades and a higher level of complexity, it | | | | advantage to work with someone you've vetted, |
| may be in your interest to consider a different | | | | that you trust, who's on your team from start to |
| approach than seeking a number of "free estimates." | | | | finish, and who can contribute a unique value to the |
| In the residential remodel market there is no standard | | | | design development as well as the construction |
| for approaching this situation and the expectations of | | | | process. And there's nothing to prevent you from |
| owners, architects, and contractors vary widely. | | | | pressing your contractor to give you the best deal |
| Please allow me to explain my approach. | | | | possible. |
| An example worth considering is a public works, | | | | |