Ellicott City MD contractor charging >$300 sqft for rehab

[Waverly Rennie]

Our architect has done a good job helping us draw up plans to rehab a wing of an 1880 property (including some tear down and re-creating) and suggested working with one of the three contractors he often uses. The contractor seems like a good guy but I can't believe how expensive the rehab is- $315k for an 800 square feet space! granted that's with a kitchen, bath, new roof etc. but dang! This is our primary residence, not one of our investment properties, and it would be turnkey, so we are paying retail.

We agreed way back to work with this contractor after meeting the three choices, but I am wondering if we should somehow bid this out instead of just going with the proposed contract. I don't want the builder to be out of pocket for his work preparing the estimate and doing the prep work he has done so far, and would be happy to pay him, but I wonder are we crazy to spend $300k on a MIL suite on a house that's worth $800k! 

Ideas? thanks in advance!

[Roy N.]

@Waverly Rennie

There is nothing unethical about saying "stop, these prices are ridiculously high!"