You get what you pay for, and unfortunately there are many homeowners who have experienced this the hard way. When you have contractors competing for your project, it’s enticing to follow the lowest number. But in the end, this can possibly be a mistake.
As an example, we just got a phone call for a job that was not only taking a longer-than-expected time to finish for the homeowner, but the contractor ate up a lot of the money. We took a look at the project, and estimated it will take $100,000 to $110,000 to finish; unfortunately the homeowner only had $50,000 left in the budget. If he would have called us in the beginning, things would have worked out differently. He didn’t go with the right guy, and the contractor he did choose underbid the project. You wind up coming to a point where the project can’t be finished.
Another recent example is the last guy we just bid against. The homeowner decided to go with the cheaper bid, but ended up with some big problems in the renovation as the contractor didn’t follow building regulations about leaving a certain percentage of walls in place. A call was made to the city, and now the project is delayed at least several years. Not only that, but the house had to be redesigned.
Before you choose the lowest-priced contractor, do your research. Get referrals. A smaller bid might mean an inexperienced contractor, perhaps they don’t have proper insurance coverage in place, and more. These issues have a way of building over time and creating bigger hassles down the road.
Here are just a few problems that can arise by going with the cheapest bid:
– A smaller bid might mean an inexperienced contractor.
– They are less likely to be insured.
– You may have to pay more for mistakes made.
– It could lead to poor planning
– More money spent to cover up mistakes.
– Poor judgment calls.
– Poor management.
– Poor productivity.
– Lower quality work and cuts corners.
– Does not have contracts with subcontractors.
– Does not require insurance with subcontractors.
– No warranty work.
– And the biggest one of all: It will cost more in the end because they left items out of the bid.
Ultimately, it’s one of the biggest decisions you’ll make. Feel free to give us a call and let’s talk about your project.