Contractor Bids and Evaluating an Estima

Contractor Bids and Evaluating an Estimate
Getting bids based on a consistent scope of work and evaluating estimates are extremely important aspects of successfully hiring a contractor. Let’s break it down into sections and address each component individually.

The Scope of Work:
This defines what the contractor is doing for you. Make sure it covers all the things you want completed. It should spell out any preparation work, protection of surrounding areas, clean up, etc. Reviewing the scope of work between contractors is an essential element of evaluating their bid estimate. Here are some things to watch for in the scope of different contractors:

· Painter: Describe how they are preparing the surface. This step makes or breaks a paint job. Define if they are hand scraping all loose paint (best), power washing the exterior (be careful as this can damage surrounding areas and you must wait for the wall to fully dry before proceeding with work), priming (best), spot priming (OK). Define the coats of paint, brand, quality, etc. Make sure they protect surrounding areas and clean up any debris.

· Landscaper: When planting trees or shrubs, it is essential that your shrubs and the root balls of your trees are planted below the ground. Do not accept the approach of making a shallow hole, then placing the plant in it and surrounding the root ball with a mound of dirt and mulch. Make sure the landscaper removes the wire around the root ball or unties the twine and places the root ball fully in the ground until only about 6” extends above ground. Make sure they guarantee the installation and life of the plant for a specified period of time. Understand your responsibilities for watering.

· Roofer: Roofs rarely leak from shingle failure, they leak from FLASHING FAILURE. The stuff you typically can’t see is where water gets in. Make sure they specify where flashing is used. Review how they flash an outside corner of a chimney or wall. On a brick home, it's best to cut the brick joints for the flashing and then seal the joint. This is much better than nailing the flashing to the brick wall and relying on caulk. If you live in a cold climate, make sure they install a rubber ice / water shield along the entire edge of your roof extending from the roof’s edge to at least 24" past the exterior wall. Make sure they protect your plants and shrubs and clean up any debris daily.

· Plumber: If possible, try to negotiate a fixed price for their work. Cleaning out a clogged drain is often priced on a “per foot” basis of the “clean-out snake” used, but some plumbers give a fixed price for this work. I highly recommend you pre-select a drain cleaner for emergency drain clean-outs. Expect to pay a premium price though for emergency calls.

What “Is” and “Is Not” Included in the Bid
Sometimes a contractor must make allowances or assumptions in their bid, such as material quantity, access to your home, etc. Also, they will sometimes specify what they exclude in the bid. Carefully review assumptions and exclusions with the contractor. Question them as to the reasonableness of any assumptions and exclusions. Do it in a nice way, but do it. If not, these items will likely become a Change Order later. When you are evaluating and comparing bids between contractors, assumptions and exclusions highlight where you have an apple and an orange.

Contractor Representations
Here I’m just concerned with the contractor’s willingness to put in writing any of the verbal representations he or she has made to you to get the job. If they have made oral commitments but won't put them in writing, that’s a REJECT.

Price
Look for a contract price that is well broken down, clear and easily understood. If it is unclear then they have not taken the time to understand your requirements, the scope of work, or the job. I would not necessarily make the selection only on price.

Incentives
It is extremely important that the contractor NOT offer you a discount or cash incentives for immediately signing the contract.

Mortgage World - 15901 Red Hill Avenue, Suite 200 - Tustin, CA 92780
Office Phone: 714.259.0700 Fax: 714.259.0275 Cell Phone: 714.448.0007

We lend in the following states: CA & CO