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Renovation estimates and bids
Written by Administrator
Wednesday, 06 May 2009 18:30
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Determining the cost is a critical element of a successful renovation project. Professional renovators have the necessary experience and knowledge to provide sound advice and accurate prices. The final price is the result of discussions between you and your renovator to develop a plan for your home at a price level you are comfortable with. The pricing process begins with a thorough inspection of the whole house, followed by a description of the work and cost estimates which will help you select your best options. It ends once you and your renovation contractor agree on a written, firm cost bid followed by a written contract to undertake and complete the project. EstimatesEstimates are opinions or judgements. Experienced renovators can often guesstimate on the spot, based on similar jobs for instance, a per-square-foot estimate for additions or basement recreation rooms. For more detailed estimates, renovators must develop specific informationÄÄdimensions, a list of materials and products, even plans and specifications. An estimate is often presented as a cost range to help you refine your plans and make choices about what to include in the renovation. Usually, estimates are free of charge part of the service provided by professional renovators. It is important to remember that estimates are not binding. To get firm prices, you need written bids.BidsA bid is a renovator s offer to perform your renovation for a specified price, based on a detailed description of the work to be done. It will specify materials, products (brand names, where possible), labour, subtrades, and so on, with accompanying costs. A bid is legally binding and becomes part of the contract between you and the renovator, should you accept it.Depending on the type and scale of your renovation, designs, blueprints or engineering reports may be required before a proper bid can be prepared. These documents may also be required for municipal permits. If your renovation involves more than one trade, a complete inspection of your home is also needed. Most renovators charge a fee for these services; however, many will absorb the cost if their company is chosen for the job. Alternatively, you may choose to have plans and specifications prepared independently by a designer or an architect and then tender the work to renovators. If so, make sure that each renovator receives exactly the same information; otherwise you will not be able to compare bids. Take your time to review bids carefully and in detail. The bottom line only tells you the price differences among the bids; the detailed descriptions of the work and materials give you a clear indication of the quality of the finished work and the value for price. If there is a big spread between the highest and the lowest bid, or if all the bids vary significantly, it probably means that each renovator sees the job differently. (Variances of about 5% to 8% can be expected, even if all bidders are quoting on exactly the same work.) Ask each one to explain the bid in detail. Most professional renovators provide their bid in writing with a detailed description of everything included in their price. You may need to re-define the job and ask for revised bids from one or more of the original bidders. Estimating and bidding practices can vary from one renovator to another. When you first contact a renovator, ask: What kind of cost advice can you provide? What information would you need in order to give me a firm bid? |
