COMPARING ESTIMATES
Let’s pose a question: Is comparing estimates the best way to select a contractor? The answer is probably not, unless you are looking to find the cheapest contractor. Do you want the cheapest contractor for your project? Maybe you do, the good news is that there are lots of cheap contractors out there. A better approach for selecting a contractor is sitting down and discussing your project with potential contractors; a good contractor will connect with you and you will feel it. If you don’t have a great feeling after that initial conversation, you should move on.
Let’s say you find yourself in a position where you have to compare estimates. There are almost as many flavors of estimates as there are contractors. Some contractors will only offer a number, some will give you a one-page estimate, others will give you a book. Also, it is difficult because various contractors will organize their estimates in different ways, some by area, some by trade or a combination of both. Take the time to try and align apples to apples. Ask as many questions as you need to understand what has been included in numbers. It is relatively easy for contractors to “get their foot in the door” with a lower number. They accomplish this by excluding items that will need to be done and by including unrealistic allowances. Understanding the quality level assumed in any allowances is critical. Be sure you understand what has been priced and that it matches your expectations. Ask about change orders: are they likely, what would be an example of one, how often do they occur on your projects?