Originally posted by Alex Baev:
@
Andrew Schultz
the handyman may not be licensed to perform the trade you require, so it's not an apples to apples comparison, especially if talking about a project that requires a pulled permit - i.e. new roof or electrical panel replacement
so, @ Mike B.:
will you automatically go with the lowest bidder? what will be your criteria for selecting a contractor, other then licensed, insured and reasonably priced?
all the bids i've gotten so far - including the ones I've actually hired ;) - came in pretty close together, and I would always get 3-7 bids, with the only exception of HVAC bid, which had a range of $7-20K
Just because someone calls himself a "contractor", doesnt mean he is licensed and insured. Because one calls himself a "handyman", doesnt mean he is not. They are simply labels.
"Will you automatically go with the lowest bidder" is a great question!
What assumptions can be made about the contractors providing these bids?
Can the lowest bidder provide the speed and quality you are looking for at lowest price because he has the lowest overhead, or because he lowballs bids to get the work, and then nickels and dimes you to death with up-charges for all the unforseen "problems" he uncovers.
Is the highest bidder looking to your job to pay off his new fancy truck, or is he the most experienced of the bidders, with a contingency percentage built in to cover the potential hidden budget busters that can and often do present themselves?
IMO, the place to put your focus is in the pre-purchase rehab estimate, which should lay out both best and worst csse scenarios. At this point you are not looking for the lowest number possible, you are looking for the most educated guess you can find. You want to consider all potential problems and determine exactly what you need and want to do with the property. Ideally, the same trusted contractor does both the pre-purchase estimate and the actual rehab. He has incentive to give you good numbers upfront so everyone is happy happy happy when its all said and done.
Until you find that trusted contractor, be prepared to estimate high, purchase low, and pray alot. Be willing to accept lower margins early on, as on the job training, until you have a solid team put together.
A key component to successful rehabbing is identifying every aspect of the process where you have control. Maintaining organization and control from the very start minimizes loss of control in the latter stages. This thread topic THE perfect example. What could have been done earlier in the process that would have made choosing the right contactor with the right numbers easier? Should you already now what good numbers for the prescribed work look like? Should you know what each of the bidding contractors previous work looks like? Should you know what previous customers thought of his work ethic, speed, and quality?
Getting multiple bids when one does not have a great team put together is a good idea. However, the work done prior to getting those bids should make the decision almost a no-brainer.