Wow !!!
This is a very interesting thread and it definitely tracks the norm in the contracting business. I'm a GC in the NYC metro area but have, over the past fifty years worked in other areas of the Northeast. First, I totally agree that there are no excuses for non-responsive contractors. If I've looked at a project and find that there isn't a meeting of the minds or that it doesn't fit the profile of services that we offer, after discussing it with my team to see if I'm missing something, either my office manager or I will call or send a message to the customer telling them that we aren't interested.
That said, I would like to explain what it takes to develop a solid quote for work. In my first conversation with the client, I will ask for a complete scope of work (SOW) that drawings or sketches, includes a specification for fixtures, cabinet grades, ceramic tile, counter tops, paints and finishes, a lighting plan, etc. (In other words, what am I bidding on). Assuming that we're talking about a flip rehab because it covers a broad spectrum of disciplines, it will start with a site visit that I will do myself. This is a chance for a two way interview to take place, and a chance for me to assess the viability of "the project". In the city, with travel, that will typically take 4 hours. I will take some photos, specifically of conditions that require special attention and that I know my subs will find important. I then have to schedule walk throughs with my licensed trades, my demo guy, and any specialists that might be required to do the work such as lead or asbestos abatement contractors. With four or five trades including travel, this usually takes another six hours. Back at the office, my assistant has been going through the information provided by the client and is getting pricing on all of the items specified in the lists provided, and is starting to build the quote. We get the quotes from the subs within a couple of days (they're doing the same thing we are for multiple proposals, and we are finally able to put together a quote for the client. We write up our quotes so they are easy for the client to understand, and then send it off. From here it will bounce back and forth a few times as adjustments are made, typically to reduce prices (and my profit margin), and with luck, we come out somewhere in the middle of the pack and have half a chance of getting the job. More often than not however, we don't because the other bidders ballpark or gut guess the cost of the job, which no one realizes until the project is in trouble, the contractor bails because he's losing his butt, or he's doing crappy work and using inferior materials for the same reason.
The real $$ cost to my organization for developing a solid bid on a $100k project is around $1,600, on a million dollar bid it's many times that, sometimes taking a week or two to pull together. In a good market we will be doing four of these a month ($6,400 in bid costs) with a sell rate of about .5%
Mike F pretty much nails it (no pun intended, well maybe), more often than not owners and investors are looking for someone to design and work up their project for free. In my business, I am loyal to my subs, don't beat them up on price, and pay them on time. I look for the same thing in my relationships with clients, particularly professionals who are flipping houses. Show me the project, give me a full set of specs, and a guarantee that we will share the risk of the unforeseen, a pretty good indication that I have the job, and you will have my attention from "Hello".
Wayne V.
Investor & GC
NYC and Portland, ME
