Comparing General Contractor Bids

[Greg Balue]

I am soliciting proposals from general contractors for extensive rehab work on a rental property. What should I expect these proposals to look like?

I asked GCs to provide cost broken down by individual project (e.g., flooring, replace toilet, install new windows) and to show cost of labor and cost of material broken out for each project. This helps me a) learn more about cost of rehab as a new investor and b) compare quotes on an apples to apples basis, and c) avoid surprises.

Some GCs refuse to send me a detailed quote. They will only include a total number and a list of what they will accomplish for that total. No breakdown of the cost per project OR the cost of material vs labor. They will only provide this once and if I award them the business. Seems like a red flag to me, but wanted to get the advise of more experienced investors!

[Mark Fries]

@Greg Balue

I also refuse to send detailed breakdowns on the initial estimate. I send a price with a few details...that's it...why should a GC spend hours crafting a detailed estimate...time is money and most consumers use an estimate like that to cherry pick and beat us up on pricing...