10 Questions to Ask Yourself When Comparing Contractor Bids
Hiring a professional contractor is equal parts exciting and daunting for anyone embarking on a home renovation or construction project. Amidst the anticipation of seeing your vision come to life and the gut-punching reality that getting an accurate estimate is hard, there's the important task of selecting the right contractor. To call the selection process a journey is an understatement. It can be downright confusing to hire someone for your home improvement project. From understanding material pricing and gauging expertise to assessing their communication skills and reliability, it takes a lot to feel confident with your decision.
Like many homeowners, you want assurance that your investment yields high-quality results. You might be willing to accept that there are often additional costs, but a reputable contractor will help work within your budget and knows how to keep a project on track, so start by learning what questions to ask. We promise—this will give you confidence and offer peace of mind.
1. Does the bid price align with the market rate?
Research the average cost of similar projects in your area. Ask those in your network to be transparent about costs from their own remodeling project.
Consider the complexity and scope of the project when evaluating the price. Most projects are one-of-a-kind, and you have to consider how the bids you receive compare based on your expectations for the entire project.
Compare the contractor's bid with other quotes. Not only does this help ensure the cost of labor is fair, but it allows you the opportunity to ask about material costs and how scopes may differ in terms of material quality.
2. What is included in the quoted price?
Ensure clarity on the scope of work, including services, materials, and labor. Request a cost of materials breakdown, labor costs, and fixture, appliance, and flooring costs as applicable.
Confirm any specific inclusions or exclusions mentioned in the contract. Itemizing everything that will and will not be included is a great way to set expectations upfront. If they share that they have a source for well-priced custom kitchen cabinets, that's great. But if they don't tell you that you'll need to buy your own tile floors, that's bad.
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3. Is the contractor experienced and reputable?
Check the contractor's track record by asking for references. And—importantly—talk to those people! Aside from asking if they're a competent contractor, ask about their project costs and how the team handled budget guidelines.
Consider the contractor's years of experience in handling similar projects.
Look for online reviews and ratings to gauge their reputation. But take them with a grain of salt and be selective when choosing which feedback to believe.
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4. Are there any hidden costs or potential additional expenses?
Discuss potential unforeseen costs that may arise during the project. The contractor likely has experience in knowing where costs can vary. For example, the price of copper changes frequently which can affect wire. Or, while many tiling projects recommend that you estimate 10% coverage, for a complicated job they might suggest buying 25% overage.
Clarify the circumstances under which additional expenses may be incurred. Encourage transparency so that you can be prepared for any changes in scope throughout the entire project.
Emily Fazio
5. Does the contractor offer any warranties or guarantees?
Determine if the contractor provides warranties on workmanship or materials. If so, review the terms and conditions of any warranties or guarantees so you can be confident in the quality of work you receive.
If it isn't clear, ask for clarification on the duration and coverage of the warranties provided. For any workmanship warranties, get it in writing.
6. Is the contractor properly licensed and insured?
Super important: Verify that the potential contractor holds valid licenses for the required services, whether it's electrical, plumbing, roofing, etc.
Confirm that the contractor carries an adequate insurance policy. As a homeowner, you need to be prepared for an accident that may happen during construction on your property.
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7. What is the payment schedule?
Understand the payment terms and schedule outlined in the contract. Additionally, check when payments will be made throughout the project so you can plan to pay without holding up the project. (No contractor should have to buy materials out-of-pocket. Be a good customer!)
Ensure transparency and accountability in financial transactions. If you need receipts and documentation, they should feel comfortable producing that paperwork for your records.
8. Does the contractor communicate effectively?
Has communication with the business been easy? Was the contractor quote well-written? Did it include sufficient detail about the design process and include basic line items about actual costs? If not, it can be a bad sign. Assess the contractor's responsiveness and clarity in communication.
Consider the ease of reaching the contractor and getting timely updates. Consider their comfort level with tools like FaceTime for real-time project questions while you're away from home. Effective communication fosters a smoother project experience.
9. What is the timeline for completion?
Now, we all know timelines can slide and it won't always be the contractor's fault, but does the timeline they've provided seem realistic? Does it hold you accountable in reasonable ways? Does it allow wiggle room for subcontractors? Clarify the expected duration of the project from start to finish, and discuss the potential setbacks.
Ensure the timeline aligns with your schedule and expectations. (We don't recommend going on vacation while you have a contractor working on the house. Be present, be visible, and be readily available to answer questions.)
10. Are there any potential risks associated with choosing the lowest-priced contractor?
Opting for the cheapest option could compromise quality, reliability, or timeliness. The difference in cost between lowest price and the highest bid can be due to both experienced labor and material quality. Review the breakdown of costs closely.
Consider potential hidden costs or the likelihood that a crew would corners to offer lower prices.
Assess the overall value bid and weigh the risks against the savings.
