Updated: July 22, 2024
Ask ACE
Ask ACE: What goes into a contractor’s quoted price?
By Warren O’Shea, O’Shea Builders LLC
Q: A contractor just quoted me $32,000 for a bathroom remodel that I know the office downstairs paid $15,000 to have done last year. What could possibly explain the difference in price, when materials and labor will cost roughly the same?
ACE advises: When you request a proposal from a builder or remodeler, please do not disrespect them by trying to negotiate lower prices by undervaluing their experience or time.
If you have a budget, there is nothing wrong with getting other proposals for comparison. Remember that you are paying for the contractor’s skill in managing the project and running its business, not just materials and labor. Good customer service, professionalism, work ethic and transparency are as important as price.
To get to the heart of the contractor’s ability and professionalism, ask about the project timeline. Have the written proposal in front of you. Pay attention to:
1. Subcontractors: Electrical and plumbing work must be done by licensed subcontractors. Part of your contractor’s job is to make sure that they are available when the project is ready for them, and that the project is ready when they are. This requires significant advance planning.
2. Workforce: Skilled construction workers are scarce, and they do not work if they are unsafe, or underpaid. Verify the contractor has a workers’ compensation policy, participates in insurance safety audits, and holds necessary OSHA certifications. I provide my employees with not only a good living wage but a benefits package comparable to companies four times as large as ours. My staff are offered health, vision, dental and 401(k) benefits. They get two weeks’ vacation, holiday, birthday and bereavement pay.
3. Details: Ask about workdays and hours, permits, long lead-time materials and the timing of orders. Also, clarify the schedule for progress payments and the detail level of invoices.
Remember astronaut John Glenn’s words: “As I hurtled through space, one thought kept crossing my mind — every part of this rocket was supplied by the lowest bidder.” Everyone wonders why a quote is high, but no one wonders why a quote is low until it is too late to matter.
ACE member Warren O’Shea is the founder of Waterfordville-based O’Shea Builders LLC which provides consulting and construction services though professionals and team leads based in Portland, Waterford, Yarmouth and Gorham. He can be reached at warren@buildwithoshea.com.
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