How to compare contractors’ bids

Home-renovation projects are significant undertakings. It is common for homeowners who may not have the time or the expertise to do the work themselves to call in professionals to tackle these jobs.

According to the home-improvement resource Homeguide.com, for a bathroom remodel, which is one of the more popular improvement projects, installation and labor accounts for 10 to 25 percent of the total project cost. In general, many contractors pay themselves $300 to $500 for an hourly rate, while helpers may make $150 per hour.

Materials used account for the other components of an overall project cost. Homeowners negotiate the best rates possible by obtaining a number of bids from contractors, spelling out both labor and material costs and determining the best option. Here is how to compare bids. t

CHECK AS MANY REVIEWS AS POSSIBLE

Go online, ask friends for recommendations, or rely on the Better Business Bureau to find reliable contractors. A contractor who seems too good to be true will not necessarily be so, but it is still best to vet each professional thoroughly prior to signing a contract.

COST BASIS VS. BID BASIS

y Certain contractors will produce an estimate based on the best guess of the cost of supplies, then add on a flat fee or percentage for their services. This is called a cost-basis bid. Others will create a bid that includes t all their anticipated supply and labor costs, o known as a bid-basis bid. Know what type of g bid you are getting to make the most accurate

comparison. a e

CREATE A MASTER ITEMIZED CHECKLIST

It is easy to explain the project differently y from one contractor to another when doing e so verbally. That may result in a different plan and price. Rather, make a checklist of what you want done, and have several copies to give to the contractors with whom you meet. This makes it easier to compare costs line by line.

HAVE SPECIFIC MATERIALS IN MIND

Make sure bids are based on the same materials and tasks. For example, if you are comparing window-replacement quotes, be sure that each quote is based on the same window material and coating. Vinyl replacement windows will likely not cost the same as fiberglass or wood windows.

It is much easier to compare pricing when contractors provide estimates reflecting the same materials.

SMALL VS. BIG CONTRACTING COMPANIES

Some bids may differ based on the manpower of the company. One contractor may view a project as an easy one that can be slipped right into the schedule. Another may have to devote more time and effort if a project is being undertaken by one or two people. This can affect cost in the quote. Furthermore, a contractor who does a lot of advertising in print, television or online, or has an office or warehouse space, may have extra overhead costs that are passed on to the customer.

DO YOUR OWN DEMO

Figure out if the contractor will allow you to perform a portion of the tear-out, cleanup or other tasks to save on labor costs. Make sure this is included in the bid.

Comparing contractor work bids can be tricky, but it helps homeowners know they are getting the best value for their money.