If you’re ready to shake of those winter cobwebs, and tackle a home renovation project this spring – large or small – then you’ll need to do your homework, compile your wish and needs list and have a comprehensive plan, in order to gather various bids from at least
three different contractors.
It’s important to get these written bids as detailed as possible, documenting the overall scope of your project along with each detail and all proposed materials.
Now depending on the scope of your particular home renovation project there are various types of bids relative to the size of your job.
Typically there are three types of bids you could negotiate with your potential contractor.
1. The Fixed Cost Bid
The contractor provides a solid bid based on your submitted documentation. This seems to be the ideal situation as it sets a complete price for the overall project and you know exactly where you stand up front.
Is best when:
2. The Cost Plus Bid
- You have comprehensive plans and documents prepared.
- The scope of your project is very clearly defined.
The contractor charges you for his labor, materials, and equipment costs, plus his standard profit and overhead mark up. This option works well for some, but the downside is you really have no concrete idea of how much the project will cost before you start.
Is best when
- You’re not yet committed to firm plans, and you’re still unsure of the overall scope of your project.
- You’re anxious to begin construction before your plans are nailed down.
3. Time + Materials Bid
The independent contractor is paid his hourly rate plus the cost of materials. This isn’t the type of arrangement you want for a large scaled projects, as it would prove way too costly!
Is best when
- It’s a smaller job, perhaps a repair or installation, where only one tradesperson in required.
Which one suits your project best?
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Article by Lori Gilder, Architectural Interior Designer, Los Angeles, Ca. © 2010 Lori Gilder. Interior Makeovers Inc.