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                        MCKAY BUILDING CO., INC.


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REMODELING'S
THREE BID MYTH

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    If you needed heart surgery, would you ever consider asking three surgeons to submit bids and then go with the lowest price? The answer is an emphatic, "Of course not!"  However, many homeowners think nothing of spending tens of thousands of dollars and opening up their home to a remodeler whom they have selected based solely on his price.  Granted, a remodeling project is not a life threatening operation.  But it could have a definite effect on the family's well being and financial health.  Many factors other than price need to be considered before the best contractor for the specific project is found.
    A common tactic is to solicit bids from three remodelers.  Price then drives the selection.  As an afterthought, the homeowner may check the remodeler's reputation, references, insurance and licensing.  No job interview begins by negotiating salary, and hiring a contractor should be no different.  Before you get to compensation, you want to be sure you have a qualified applicant.
    One of the first things to check is references.  It's important that you talk with people who have hired the remodeler to do projects like yours.   You'll want to ask the references if they had any problems with quality, payment schedule, employees or completion time.  The most telltale question is "Would you hire this contractor again?"  Some people will be hesitant to make negative comments, but the enthusiasm with which this question is answered can usually tell you everything you need to know.
    After you've talked with references, take a look at the work.   Check the quality of the craftsmanship and material, overall aesthetics and creativity, and how the project blends in with the rest of the house.  Verify the remodeler's licensing and insurance.  Other indications of professionalism are membership in national and local trade organizations, and third-party warranty guarantees.   Once you have done your homework and feel confident the remodeler has a proven track record of quality and service, then it's time to discuss the project's details and price.
     When you are purchasing a new car, you're purchasing a product and can see what it looks like.  With a remodeling project, you're purchasing a concept and don't see the finished product until well after the contract is signed.   This is the reason why bid shopping works for automobiles, but not for remodeling projects.  You can ask three dealers to price specific make and model car, and be fairly certain you are comparing like products.  But with remodeling, the products could differ significantly.  There can be many reasons for a lowball bid including shoddy materials, poor craftsmanship, inadequate safety precautions, lack of insurance and licensing, or inexperience.  Be sure the proposal and contract are as thorough as possible including names and models, cost, payment schedule, procedure for change orders and completion date.
    If you like the contractor and are confident with his work, but the proposal is beyond your budget, all hope is not lost.  Ask him what can be scaled down to meet your budget.  It very well could be something minor such as using stock cabinets instead of custom, or selecting different model of tiling, countertop or trim.
    Quality is never cheap and good research may seem like a headache.   But see what an expensive headache really is by having a lowball bidder take the roof off your house, disconnect the plumbing and leave no forwarding address as he skips out on the final payment.

from Advanced Design and Remodeling Magazine

 
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