When you finally decide it’s time to take on that home improvement project, the first emotion you feel is excitement, right? But then the questions start piling up:
- Who should you choose to handle the remodel?
- Does this company know what they’re doing?
- How long have they been in business?
- What happens if I want to change direction?
All valid questions, and all reasons why it’s smart to get estimates from multiple contractors. One might come in low, another much higher…how do you decide which is the better choice? Understanding bids and the reasons behind the numbers can save you from costly surprises and help ensure your remodel goes smoothly from start to finish.
Why multiple bids matter
For most homeowners, interviewing several contractors to determine who they want to get a quote from is important. In the initial interview, take note:
- Were they on time?
- Did they portray a professional appearance and confidence?
- Was their truck clean?
Their job will never be cleaner than their truck. Make sure you walk them out to their vehicle at the end of the interview. Look the truck over. Your job will be kept in the same condition as their truck. If it was full of empty fast-food lunch bags piled on the dashboard, interspersed with mountains of receipts, and disorganized tools in the truck bed, it all but guarantees you will be fighting job cleanliness and organization every day this contractor is on the job.
- Did they ask many questions, or did they do all the talking?
- Are they willing to share the names of their primary suppliers and subcontractors?
Weeding out the candidates should commence before even soliciting detailed proposals.
“When a homeowner is interested in getting a significant project done at their house, it’s kind of tradition that they would get two or three estimates or bids,” said Rosie Romero, founder and owner of Rosie Right Design Build.
Comparing bids isn’t always straightforward – the real challenge is making sense of them. Each contractor may interpret your project differently, leading to estimates that vary in scope, materials, and pricing.
“Every person who comes to check out the project will look at it a different way,” Romero said. “Meaning every proposal will include different things. It’s hard to get it down specifically to, ‘am I really comparing plan A with plan B as close as I can?'”
The lowest bid isn’t always the best
The lowest price is seldom better – it could mean fewer included services, superintendents spread too thin, or lower-quality materials. It is preferable to have one superintendent assigned to your job for the duration of the project. It’s tempting – but sometimes not the smartest idea – to go with the cheapest option, especially on full-scale projects.
“We have a joke in the industry that the low bid for any project is the guy that made the biggest estimating mistake – you can’t stay in this business and be the low bidder every single time on every single job,” Romero said.
A bid that seems too good to be true often is
A low bid could mean something was overlooked, underestimated, or intentionally excluded, leaving the homeowner to deal with potential issues down the road.
In some shady cases, contractors might intentionally offer a lower price to secure the job, then rely on changes from the homeowner to increase the total cost once the project is underway. You might risk rushed or incomplete work. If a contractor is cutting costs to stay profitable, it’ll show up in the quality.
Evaluating bids varies by location – in Europe, the process of vetting contractors takes it one step further by choosing the bid whose price is the average of all the bids.” Romero said. “It’s more objective with one extra step involved.”
There’s also a difference in warranty. In Europe, contractors do not guarantee their products for 2 years, as they do in Arizona. In many cases, they guarantee them for life. Price is just one piece of the project; warranties, experience, and long-term value are just as important.
What a good bid should include
A detailed bid is one of the best tools homeowners have for making informed decisions. Romero said every estimate should include a start date, a completion date, and a list of everything included and excluded. A thorough estimate should outline:
- A detailed scope of work
- Plans for demolition and installation
- Any exclusions discussed during planning
- Materials and finishes
- Timeline expectations
“At Rosie Right, we list everything discussed, including exclusions (things we’re not installing), to ensure complete clarity. Then, as detailed as possible, we outline the scope of work,” Romero said.
If a contractor provides a vague estimate with little explanation, that’s a red flag.
A trustworthy company should walk homeowners through every line item and answer any questions that may pop up. Ask them:
- Will they communicate changes in writing?
- How are additional costs approved?
Clear answers to these questions can help you avoid misunderstandings later.
Understanding costs and expectations
Many contractors provide general pricing ranges based on neighborhood and project type to help set realistic expectations early on.
“For kitchen remodels, we tell people that it’ll be about 20 percent of the appraised value of their home,” Romero said. “If you’re in a $400,000-dollar home and you want a complete kitchen remodel, you’re going to spend between $80-100 grand for that remodel.”
Of course, costs can vary widely depending on choices – some spend $80,000 just on appliances!
These days, contractors charge a fee for detailed estimates that usually cover in-depth planning, including material selections and, sometimes, blueprints. This practice is a double-check, another way to help prevent costly surprises later.
“If you want the company to go through and pick out the cabinets and the countertops and the appliances and then put together a set of blueprints ready to submit for permit, that is usually another fee,” Romero said. “But that pins everything down to the penny.”
And that brings us to allowances. Rather than specifying exact materials, some contractors include placeholder amounts for items like countertops or fixtures. These allowances are put into place to help speed up the estimating process.
Unfortunately, an allowance can create uncertainty. Romero recommends homeowners avoid settling for allowances, as they represent unknowns.
Choosing the right contractor
Selecting a contractor isn’t just about numbers; it’s about trust. Remodeling projects don’t always go exactly as planned, so it’s important to choose someone who can handle challenges professionally.
“Don’t always go for the lowest bid and make sure you understand the difference between the bids,” Romero said. “Remodeling is not a science, and every project is different. There will be some level of surprise in the process. The company you choose is the company you have the most confidence in; who is the most capable and who will handle the surprises fairly?”
Getting multiple bids is still a smart move, but only if those bids come from reputable professionals. Before requesting bids, research and vet contractors. Check their references, licenses, reviews, and ask relevant questions. Being informed increases your chances of a smooth and successful remodel.
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Homeowner Handbook | #HighVsLowBids
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