Remodeling's Three Bid Myth

 
If you needed heart surgery, would you ever consider asking three surgeons to submit bids and then go with the lowest price? The rhetorical answer is an emphatic, "Of course not!" However, many homeowners think nothing of shelling out tens of thousands of dollars and opening up their home to a remodeler who they have selected based solely on thier price. Granted, a remodeling project is not a life threatening operation. But it could have a definite effect on the family's well being and financial health. Many factors other than price need to be considered before the best contractor for the specific project is found.
 
A common tactic is to solicit three remodelers for bids. The homeowner will often throw out the high and the low, and take the middle, confident he's minimized his risk by dropping both extremes. Price drives the selection. As an afterthought, the homeowner may or may not check the remodeler's reputation, references and insurance and licensing documentation.

No job interview begins by negotiating salary, and hiring a contractor should be no different. Before you get to compensation, you want to be sure you have a qualified applicant.

Do Your Homework! - One of the first things to check is the prospective remodeler's references. It's important to talk with people who have hired the remodeler to do jobs similar to yours. A beautifully remodeled kitchen or bath sheds little light on the remodeler's ability to add a second story to your home. You'll want to ask the references if they had any problems with the quality, payment schedule, employees or completion time. The most telltale question you can ask a reference is, "Would you hire this contractor again?" Some people will be hesitant to make negative comments, but the enthusiasm with which this question is answered can usually tell you everything you need to know.

After you've talked with past customers, take a look at the remodeler's work. Check the quality of the craftsmanship and materials, overall aesthetics and creativity, and how the project blends in with the rest of the house.

Remember to verify that the remodeler you choose is licensed and insured. If you hire a remodeler who doesn't carry workmen's compensation insurance and one of his employees falls off your roof, you could be liable for the medical bills and lost wages.

One good indicator of a professional remodeler is membership in a national trade association such as the National Association of Home Builders (NAHB) and a local trade association like the North Coast BIA. The fly-by-night con artists intent on ripping people off that unfortunately attract so much attention in the industry are not likely to leave the kind of paper trail created by joining a professional trade association.
Another indication of professionalism is the remodeler's warranty. Most remodelers offer some sort of a warranty. But remember, a warranty is only as good as the company backing it. Ask if the remodeler carries any of the third-party warrantees on the market.

Negotiations - Once you have done your homework and feel confident the remodeler has a proven track record of quality and service, it's time to discuss the project's details and price.
As with most job applicants, your final decision may very well come down to how comfortable you are with the remodeler and how communication flows between you. Remember that the remodeler will be spending many hours in your home, so it's important you feel comfortable with him or her right from the start. You should be able to work together combining your ideas and his expertise to turn a vision into a fulfilling reality.

When you've selected a remodeler to ask for a bid, make sure the bid and eventual contract are as thorough as possible including material brand names and models, cost, payment schedule, procedure for change orders and completion date.
If you like the contractor and are confident with this work, but he comes in with a bid that's beyond you budget, all hope is not lost. Ask him what can be scaled down to meet your budget. It very well could be something minor such as using quality stock cabinets instead of custom designed ones, or selecting a different model of tile, counter top or trim.

Quality is never cheap and good research may seem like a headache. But see what an expensive headache really is by having a low ball bidder take the roof off your house, disconnect the plumbing and leave no forwarding address as he skips out on the final payment.
 
The NAHB'S brochure "How To Find A Professional Remodeler" guides homeowners through the process of finding and selecting a remodeler. Singles copies are available at no cost to homeowners by calling the North Coast Building Industry Association at 440-934-1090.