Homeowners are used to hearing “get at least 3 offers” before proceeding with a construction project. This is good advice, in addition to getting referrals from friends and family. However, offers are only useful if they come from comparable companies and if they are structured in a way that they can be accurately compared. Many homeowners, and even some architects, don’t do a good job detailing the project.

The most important requirement is a complete set of drawings and specifications. If everything related to the project is not clearly explained, each bidder will make different assumptions about fixtures, appliances, finishes, etc., which will lead to widely divergent bids. And because each bidder’s assumptions likely differ from the buyer’s, the stage is set for conflict during the project. The way to make bidding more productive for everyone is to eliminate the guesswork and give each bidder a legitimate chance to be successful.

1) Buyers should interview three to five builders to see who they would like to work with. If a buyer is working with an architect, the architect likely has a list of builders who appear to be suitable for the project. Buyers can also call each builder’s previous clients for referrals.

2) Buyers should invite two or three builders to submit quotes. Note that bidders may want to know who they are bidding against. For example, an established professional company may choose not to compete against a small, less professional team with a moderate reputation.

3) Provide as detailed plans and specifications to each builder as possible; In addition to being required for an accurate bid, it also enables builders to search for discrepancies, incomplete items, and other problems. Blueprints are seldom perfect, so a good architect should receive this type of feedback and be willing to make any necessary revisions. This will lead to a more accurate budget for the project.

4) The buyers and the architect should also work to eliminate as many assumptions as possible. Assignments are a good example: If buyers have researched kitchen cabinets and decided that their quality level will cost $ 40,000, they should tell bidders to use that number.

5) Your new construction project or remodel project is a great investment, make sure surface protection is specified so your interior finish stays looking new throughout construction.

6) Set an acceptable due date for all parties – three to four weeks is typical for a custom home project.

The offer must include the budget and an estimated completion date. It should also include each builder’s policies and costs, including administrative fees, for making changes once the project is underway. Before making the final decision, the buyer and architect should meet with each builder to review the offer, ask clarifying questions, and confirm the numbers. After all, it wouldn’t be good for anyone to rule out a qualified candidate, or end up in trouble later, because there was a mathematical error in the offer.

Custom home builders say that at least 20 percent of the plans they see are over-designed for the customer’s budget. That’s another reason to work with a reputable builder who can be involved in the design of the house from scratch, even if they don’t have the lowest bid.

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