Completing a successful home renovation is all about planning.
Renovation work is often unpredictable with a few surprises on every job. For this reason, it is critical that any bid adds in a small percentage for a margin of error so that the renovator can earn a profit even if there are mistakes. Considering that material cost change regularly, along with construction laws as well as EPA requirements, underbidding a project can spell disaster for any contractor. It is much easier to prepare customers about possible unforeseeable costs before starting a project than to deal with angry customers when you have to ask for more money after the fact.
Instructions
1. Meet with the clients to discuss the project and so that they can show you what they want. Inspect the home and take notes. Be sure to ask as many questions as necessary to fully understand what the customer wants. Take photos and get a copy of the final plans or specifications on paper.
2. Conduct market research to get the costs of the materials needed. Obtain at least three quotes for the most costly materials. Contact wholesalers and industry contacts for the best quotes.
3. Break down the project into smaller projects. Decide what type of labor is required for each project. Make a list of at least three contractors to call for each project.
4. Call subcontractors and get quotes for each project, fully describing the project in detail. Answer any questions. Ask for a written quote from each subcontractor.
5. Analyze the bids from the subcontractors. Throw out any low bids that appear to be much lower than the other bids. Select the contractor with the best fair bid and references.
6. Complete a cost estimate sheet by adding the labor and material costs together. Compare the job to other comparable jobs completed to determine if your estimate seems reasonable. Make adjustments by adding and subtracting costs based on the differences between the two jobs.
7. Recheck the numbers again to be sure there is no mathematical mistake before preparing a final proposal for the customer. Add a percentage on top of the estimate to account for surprises or possible estimate errors.
8. Prepare the proposal for the prospective customer, breaking down all the tasks required to complete the job on paper. Spelling all the details out for the customer is important so that they can fully understand all that is required to complete the job. Use language that is understandable to the average person so that the customer understands the estimate.
9. Call the customer after delivering the bid to answer any questions they may have. Be sure they agree that your bid accurately described the job they wanted done. If the prospective customer says there were some problems with the estimate, ask for clarification and a chance to update the bid.
Tags: each project, fully understand, least three, prospective customer, required complete
