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Getting Three Estimates from Contractors

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Getting Three Estimates from Contractors Nehmo Sergheyev 05-21-2006
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Posted by udarrell on May 21, 2006, 4:09 pm
Nehmo Sergheyev wrote:

>Many Home repair/renovation-advice TV segments, government pamphlets,
>web pages, newsgroup postings, and so on, advocate that the homeowner
>get three (I've even seen recommendations for more) estimates before
>selecting a contractor. These advisers then have a variety of methods
>to proceed: average the estimates and keep looking, pick the middle,
>pick the guy you like, or sometimes they provide no further advice. The
>homeowner, lacking any better criteria, may very well take the lowest
>bid or estimate. Consequently, often the homeowner then gets the lowest
>quality job.
>
>Most of these advisers don't encourage the homeowner to spend time
>actually educating themselves on the type of work they want.
>
>
First, Educate yourself so you know what needs to be done in the proper
order to reduce your energy costs.
Then locate the contractors that do things in the proper order! - udarrell

--
Air Conditioning's Affordable Path to the "Human Comfort Zone Goal"
http://www.udarrell.com/air-conditioning-total-heat-enthalpy-latent-heat.html

Posted by CWatters on May 22, 2006, 5:35 am

> How then should a customer select a contractor?

I'm having a new one off house built. Here is how I selected a builder. I
may have the numbers slightly wrong but it went something like this....

Long before we needed to select one I was out looking at other projects. Any
nice house being built I would stop and chat to whoever was on site. Several
builders showed me around houses that they were working on. The quality
difference was amazing but so was their attitude. Usually I asked a few
questions that I half knew the answer to. Sometimes I got the answer "oh you
don't want to worry about that - we take care of all that". Humm. In such
cases their card was usually torn up before I got back in the car. Others
were much more responsive and they explained how they did things and why
they did it their way. Of around 12 builders I met, two impressed me enough
to go on the short list. One was very keen as he was just finishing a superb
house down the road from our site - lets call him Builder A.

For the short list my architect recommended two companies and my Quantity
Surveyor also recommended two. So we had six in total. We sent out an
initial letter to all six together with a 3D CAD drawing/render showing what
the house was like and a one page description. We asked them to let us know
if they were interested in bidding. I think 5 said yes and 1 declined.

I then went to visit the 5 builders. I asked to see two projects - a house
they had completed and a house in progress. I guess I spent about two hours
with each builder. I was able to cross one off the list - they mainly built
small estates of nearly identical design and of a lower standard than I was
looking for.

So we sent out four drawing packs (each of which contained about 40-50
drawings and a specification that ran to 50 pages). We asked for sealed bids
to be returned in 4 weeks (or was it 6 weeks?).

Most bids arrived on the last day. Three were nearly identical and were
within 1% of the figues that my QS had estimated. One was about 5% lower.
This bid was from builder A who had been keen to get the job and who had
impressed me when I met him. Due to the complexity of the project my
quantity surveyor wanted to check the winning bid to ensure nothing had been
missed - it hadn't so he got the job.

The project is now around 75% completed and our builder continues to
impress. The quality is about the best I've seen.






Posted by Nehmo Sergheyev on May 22, 2006, 10:02 am
You met Builder A in the second paragraph. You could have just gone
with him then and saved everybody a bunch of trouble.

--
(||) Nehmo (||)

CWatters wrote:
> I'm having a new one off house built. Here is how I selected a builder. I
> may have the numbers slightly wrong but it went something like this....
>
> Long before we needed to select one I was out looking at other projects. Any
> nice house being built I would stop and chat to whoever was on site. Several
> builders showed me around houses that they were working on. The quality
> difference was amazing but so was their attitude. Usually I asked a few
> questions that I half knew the answer to. Sometimes I got the answer "oh you
> don't want to worry about that - we take care of all that". Humm. In such
> cases their card was usually torn up before I got back in the car. Others
> were much more responsive and they explained how they did things and why
> they did it their way. Of around 12 builders I met, two impressed me enough
> to go on the short list. One was very keen as he was just finishing a superb
> house down the road from our site - lets call him Builder A.
>
> For the short list my architect recommended two companies and my Quantity
> Surveyor also recommended two. So we had six in total. We sent out an
> initial letter to all six together with a 3D CAD drawing/render showing what
> the house was like and a one page description. We asked them to let us know
> if they were interested in bidding. I think 5 said yes and 1 declined.
>
> I then went to visit the 5 builders. I asked to see two projects - a house
> they had completed and a house in progress. I guess I spent about two hours
> with each builder. I was able to cross one off the list - they mainly built
> small estates of nearly identical design and of a lower standard than I was
> looking for.
>
> So we sent out four drawing packs (each of which contained about 40-50
> drawings and a specification that ran to 50 pages). We asked for sealed bids
> to be returned in 4 weeks (or was it 6 weeks?).
>
> Most bids arrived on the last day. Three were nearly identical and were
> within 1% of the figues that my QS had estimated. One was about 5% lower.
> This bid was from builder A who had been keen to get the job and who had
> impressed me when I met him. Due to the complexity of the project my
> quantity surveyor wanted to check the winning bid to ensure nothing had been
> missed - it hadn't so he got the job.
>
> The project is now around 75% completed and our builder continues to
> impress. The quality is about the best I've seen.


Posted by on May 22, 2006, 12:26 pm
>How then should a customer select a contractor? First he or she should
>educate themselves on the work that needs to be done. Then, calling a
>few contractors is fine, and even getting three estimates is correct in
>some situations. But indiscriminately wasting people's time is abusing
>the system and it will put off the contractor who is perhaps the
>homeowner's best bet.

"Even getting three estimates is correct in some situations?" If
someone has a legitimate job to do, there is nothing wrong with getting
3 estimates period. No one is forcing any contractor to come give an
estimate. And if someone is dumb enough to think they are doing the
contractors a favor by not getting three estimates, while most people
do, they can live with the consequences. Do you think the contractor
is going to give the guy that only calls for one estimate a break?
LOL


Posted by CWatters on May 22, 2006, 6:18 pm

> You met Builder A in the second paragraph. You could have just gone
> with him then and saved everybody a bunch of trouble.

Yes but would he have given me the same price had he known he was the only
bidder?



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