The 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 New York homeowners think nothing of shelling out tens of thousands of dollars and opening up their home to a remodeling contractor who they have selected based solely on his 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 remodeling contractors for bids. The New York 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 remodeling contractor'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 remodeling contractor's references. It’s important to talk with people who have hired the remodeling contractor to do jobs similar to yours. A beautifully remodeled kitchen or bath sheds little light on the remodeling contractor's ability to add a second story to your New York Metro area 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 remodeling contractor'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.
One good indicator of a professional remodeling contractor is membership in a national trade association such as The National Association of The Remodeling Industry 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 paper trail created by joining a professional trade association.
Another indication of professionalism is the remodeling contractor's warranty. Most contractors offer some sort of a warranty. But remember, a warranty is only as good as the company backing it. Ask if the contractor carries any of the third-party warrantees on the market.
Negotiations With Your Home Remodeling Project
Once you have done your homework and feel confident the contractor 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 with the contractor you are, and how
communication flows between you. Remember that the contractor 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 are purchasing a new car, you’re purchasing a product and can see what
it looks like, and test drive it to see how it feels. With a remodeling project,
you’re purchasing a concept and don’t see the finished product until well after
the contract is signed. This is the reason that bid shopping works for
automobiles but not for remodeling projects.
You can ask three dealers to price a specific make and model car, and be fairly certain you are comparing like products. With remodeling, however, the products may differ significantly. There can be many reasons for a low ball bid including shoddy materials, poor craftsmanship, inadequate safety precautions, and lack of insurance an licensing. Or if you’re lucky, the bid may just be from an inexperienced remodeler who’s never done a job like yours before.
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 his work, but he comes in
with a bid that’s beyond your 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 tiling, 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.