So, your plans are approved, financing is in place, and you’re ready to build. Now all we have to do is find an honest, competent, organized, financially stable and highly professional contractor to oversee and build the project.
Oh, and they must also be able to work within your budget. Well, if you’re just selecting a contractor to work with now, you’re in trouble, especially if you’re on a tight schedule and need to get started right away.
I can tell you right now, these types of contractors are Few Y distant from each other. That’s because they are N/A in demand, who can afford to pick and choose their clients and work. Truly professional contractors will not hire people haphazardly just to fill a demand and as such may not have the manpower or be willing to hire to take on all the work that is offered to them. However, that doesn’t mean you have to settle for second best. But you need to plan ahead.
If you already have a well-known, qualified contractor who is willing to schedule the job based on their past experience, then you are very lucky and just need to set a price and terms with them. Otherwise, at the same time that you submit your permit plans to your local authority for review, you must also submit them to a “short list” of at least three, but no more than five contractors for base bids. This ensures that you have time to properly review the scope of work offered by the various contractors and make an intelligent and informed selection. It also allows your selected contractor to lock in the time and resources they will need to complete the project in the allotted target time.
But how do you get qualified contractors to bid on the job? Well, the best way, of course, is through a previous employment relationship, either directly, or through a family member or close friend. But take any reference with a grain of salt: unfortunately, past performance by a Contractor is no guarantee that HIS work will go smoothly.
The next best way to create a bargain list is to ask at your local building supply house. By this I don’t mean the big orange box (you know who I mean), I mean a “TRUE” Custom sawmill or joinery shop. They will usually be happy to give you a few names of contractors who are known for their quality work. One benefit of this is that they will usually also give you the names of their best and most stable customers., which can be reassuring in terms of financial stability for contractors. I mean, they’re not about to bring work to a standstill that doesn’t pay their material bill on time, are they? Again, please be Beware of any special relationship you sense between the yard and the builders, especially if they will only recommend one person for the job.
The worst way is the phone book. Highly competent contractors do not usually have ads in the yellow pages. In fact, the best ones do NOT advertise at all. They are so busy with just word of mouth, that there is absolutely no need to spend. That’s not to say you shouldn’t call some of the hotter ads if you need to get a few more deals, just be extra cautious. Requires references for various RECENT projects, and CALL THEM. If you get bad news or a lukewarm response, don’t waste time delisting the contractor.
Once you have your list ready, send them drawings or sketches right away! Submit them with a cover letter stating the detailed scope of work to bid on and the due date by which bids are due. This is VERY Important! Demand an offer date, or you’ll be bummed out! It’s just the nature of the business. Many small contractors, while excellent tradesmen and craftsmen, may do their estimates at night or on weekends. Being a small contractor myself, I can tell you that sometimes it’s really hard to sit down and force yourself to push through the paper after a long day on projects. Don’t be afraid to call them a few days before the offer expiration date and again the day before. This will ensure that you are not put off until the last minute and will help you get an accurate and responsible estimate.
Once you have all the offers, you should first review them for completeness and accuracy. Do they all offer the same scope of work? Are there exclusions and qualifications to the offers? For example, does one Contractor exclude final landscaping, while another includes it? What is the dollar difference in your bids? will be the difference MORE THAN cover the exclusion? If not, the inclusive offer is a better offer from your point of view. I mean, if the offer with the exclusion is $5,000 cheaper, and you can get your landscaper to do the excluded work for $3,000, then you’ve effectively saved $2,000, see?
Adjust bids for exclusions and note the adjusted prices on a review sheet. Now comes the important part. The actual selection should be based on the most accurate, complete and responsible offer, not just price. Price is important, but it should be secondary when making a decision of this magnitude. Saving a few bucks on the offer, only to get hit by the changes or a default is not recommended! This is where the references and general reputation of the bidding Contractors should be sought. I generally recommend that you assign a point value to each criteria and divide it by the number of bidders to help you make a decision.
Gives points for Price, Reputation and Referrals, Equipment and Personal Appearance. For example, you have three qualified bidders who responded. The #1 bidder has the highest price, so you get a three for that (award points according to the number of bids you received for simplicity). But, number 1 also has the worst references, so they only get one for that. Of all the bidders, they had the second cleanest and most maintained truck, so they get two. However, they showed up at the initial meeting unshaven and covered in mud. Mark one. Total for contractor #1: 7 points.
Bidder #2 was the highest bidder, but got three in all other categories. Scoring: 10. Bidder #3 ends up with an 8. Now we look carefully at the prices. The #1 bidder is low, but his price seems TOO under. The other two bidders are within a couple of percent of each other, but no. #1 is 15% lower. Big Red Flag, especially considering his score. My advice? Forget number 1. Now as for the other two, they may be so close as to make the decision very difficult. At that point, you have to go with your gut. Who do you like more? Who do you think you will be able to work best with? Remember, this person will be in your life for weeks or months depending on the scope of the job, and you will need to work well together. So at this point, choose the one that best suits your personality.
