Can you offer some advice on how to negotiate with this contractor ?

Question

Hi Folks,

We have recently purchased a rental property and are eager to get a contractor in there to renovate and make the house rent  ready.

It's a lower end 1960s home that will generate under $1,000 monthly rent . I have just had a contractor bid at $6,500- 7,000. He's a young fellow and he has very good quality of work.  I would like to contract him , however I think he has quoted me a price that may be too high. We are just starting out and money is very tight . How should I go about this ?

I've included below what he sent us in explaining his bid .

Painting:Sand rough trim to smooth acceptable condition , caulk any areas needing it.-Walls 2 coats of sheen of your choice-Trim 2 coats of Oil Base Enamel SemiGloss$1,750 labor only$2,300 material provided (Sherwin Williams) and touch up paint left for your property

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Repairs:Material cost estimate $60-100(Labor Only)Plumbing repairs and tie in - $400Minor Carpentry - $100Wire bathroom switch - $50Repair broken window - $50

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Floor Repair/Level/Floor Installation:Labor for subfloor, caulking cracks in foundation, laying moisture barrier, and installing underlayment and laminate$2,400Remove existing flooring and subfloor and rafters.Lay moisture barrier and seal house of leaking cracksInstall and level new rafters 2x10 pressure treated, and install 3/4" subfloor.Lay laminate underlayment and install laminate to match surround floor height. Install Baseboards, quarter round moulding, and floor to floor transition moulding.

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Floor materials estimate$1,200-1,400Concrete sealer 100Underlayment. 60Laminate. 270Shoe moulding. 50Caulk. 60Nails. 50Screws. 60Rafter 2x10x16 PT. 350OSB subfloor 3/4"  200Moisture Barrier. 55

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Total project estimate $6500-7000

Darren Sager · Answer

@Cynthia Banks  if you get other quotes and he's the lowest than his quote is fair and reasonable for the work you want him to do.  That's just what it will cost to get it done.

Paul Ortiz · Answer

Cynthia B.

Also Try and get some type of Schedule worked out ahead of time from your contractor of choice, this helps to visualize everything being done and help keep the project moving forward.

Chris Adams · Answer

@Richard C. I don't read it that way, and since you and I read it differently thats one more thing Cynthia B. should get clarified.

Richard C. · Answer

Yep.   Also, if this is a one time thing for you, it may be worth it to scrape every penny you can off the guy.  If you will be doing really high volume, people will come to accept you nickle and diming them because you give them a lot of work.

If you are like me and add and rehab a house a year, maintaining a good relationship and having the guy happy to see your number appear on his caller ID is worth not being to aggressive in getting to absolute rock-bottom.

Richard C. · Answer

Yes, she should be sure.  But one line starting "Labor only" and the next starting "Material provided" looks like two options to me.  He cannot really expect anyone would accept a bid for an additional $2300 for paint when they could accept the labor only bid and buy the paint themselves for $600.

Chris Adams · Answer

Without seeing interior pics, i think he's out of line on the paint price. $2,300 in materials? Thats a butt load of paint. SW is higher than most, but the quality is worth it and I use it. I use the 200 series for my rentals.

If the house has carpet that you are keeping then he will have to protect that, but if not then  this makes his job easier and his price should reflect that. $1,750 for labor is kinda ok. Not too high if the walls and trim are different colors.

Im not sure about the green treated floor joist being needed. This might be common in Houston since you guys have salt water so close and I'm sure its humid there. We only use green treated when the lumber contacts the concrete, But there should be a 2x4 plate between your joist and foundation.

He doesn't state how many joist he's replacing, or the square footage of flooring repairs. Get this in writing so both of you know the details. If he opens this up and its worse than you think then this could be important.

He's done a decent job of breaking down his estimate compared to most contractor bids Ive seen.

When it comes down to it. I would tell him your at "X" and my budget is at "Y". How much wiggle room do you have to get me to my goal.

Be sure to get copies of his insurance, his agent should email this to you no questions asked. Always get references and at least a couple different bids.

Adam Dahlberg · Answer

What is the size of the house / room ect. Is paint interior only?

I can at least get you book pricing for your area and you can go from there....

Adam

Richard C. · Answer

Well, it worries me that he appears not to know the difference between a rafter and a joist...

But other than that, I'd get multiple quotes.  But I would also tell you that in my (coastal but rural) market, I'd jump on that price.  Maybe a tiny bit high on the painting (hard to know, you don't tell us the size of the house) but even assuming the floor leveling/repair is for a single room...

Darren Sager · Answer

How many other contractors have you quote the same work?  I would have at least three come in and then go back to the one you want to work with if the other contractors were lower and ask him to match the lower rate because you'd prefer to work with him.

Adam Dahlberg · Answer

Cynthia B.

And just in case you want to shop the paint yourself which I recommend if you want to save the money you are looking at about:

10 gallons for walls, if all one color  (satin or eggshell) double rolled

5 gallons for ceilings, closets (flat) spray

2-3 gallon for trim, baseboard, shelving doors, etc. ( semi - gloss) but better off just getting the 5 gallon ...also sprayed.

At least this is the formula/ amounts for flip and rental homes that size we use all the time.

Hope this helps.

Can you offer some advice on how to negotiate with this contractor ?

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