On Sunday, August 21, 2016 at 10:16:02 AM UTC-5, Swingman wrote:
> Common practice when asked to give a _preliminary_ estimate is for the
> bidder to make an educated estimate/guess based on what it has
> historically cost _him_ to do similar jobs ... <emphasis on the
> _informed_ aspect of giving a "preliminary" estimate>.
Well said, as usual.
> Then, IF it is established by the customer to be roughly within their
> budget, both the customer and the contractor will ideally work together
> to refine a "contract price".
I will give a "cigar" estimate (the time it takes me to smoke a good cigar) to educate a client on what to begin to understand what they can expect on a remodel/addition, but quit after that. I try to manage expectations and discourage the "hey, we'll work together to make this happen attitude". We are partners in a way until the contract is signed, then I am a service provider with a clearly defined task.
> IOW, a contract price that is based on the specifications required by
> both parties (IOW, containing elements such as cost of code compliance,
> materials and labor by the contractor; and degree of trim, fit and
> finish, etc., desired by the customer, and within his budget).
Without specs and a <<detailed>> scope of work, there is no project. I have been sued (unsuccessfully) and have had my reports and findings used in more than a few court cases when I have provided inspections and opinions for attorneys and their clients. The upshot of those experiences is the mandatory requirement that all work be specified as closely as possible in writing on the contract.
These days, with all the DIY experts, the YouTube experts, This Old House experts, the Google experts, and on an on and on... I make sure sure that the client understands my contract completely before they sign. I don't listen to second guessing once the starter gun is fired and we are off. It is my responsibility to make sure the client understands completely how the whole process works before we start, and since my entire business is referral (and has been for decades)I need happy clients that have carefully managed expectations. This all plays into what you are saying, Karl.
> Not all potential clients will provide their ideal budget figures
> upfront; and not all bidders/contractors are dedicated enough to
> maintain the type of historical data to give a realistic "preliminary
> estimate", so, as you have experienced, they will use some internet
> generated figures to suss out the potential client's budget.
NO, they dont'. They will happily waste your time, effort and talent getting and estimate, getting an education, and learning about the business in general. Their project is something they are "looking into", sometimes in the most lazy way. I know it sounds arrogant, but I no longer meet with people on the weekend or in the evenings unless I feel some kind of commitment. I don't want to go a client's house on a Saturday while they are drinking beer, shuttling kids around, taking care of weekend chores, etc.
I use the same reasoning I used when training loan officers to sell money. If they won't take off an hour or two early from work to borrow $250,000 for a mortgage loan, just how serious can they be? How much respect for you as a professional do they have for you if they only want you talk to them when they only have time when it is completely convenient and comfortable for them, when they have nothing else of greater importance to do?
>
> It is also a common practice for contractors to bid unreasonably high on
> jobs they don't really want to do, hoping they don't get the bid, and,
> if they do, that the high figure will make it worth their while
For me, this usually has more to do with the client than the work itself. If I think they will be a PITA, I do charge more if I think they will need more hand holding. When client can't figure out why I don't do things like Joe Silva or the Property Brothers (and then lecture/educate me from their TV experience), or they are calling to make sure I didn't let the dog out, or asking me and my guys to unload fertilizer, and on a on... sure they get a higher price. OTOH, if they turn out to be just fine, I wind up giving those folks as much as I can off the cuff.
> While all the above may be obvious, surprising how many don't understand
> the process ... probably because it is not covered on DIY cable shows by
> reality TV contractors with cute buns/tits. ;)
Preach it, Karl! On the other hand, I have had some unintended results from the DIY group. I have about 3 or 4 clients a year that have all sizes of projects they have contracted themselves that fail. When they get my name from my referral net, they are usually so pissed off at ALL contractors that they leave me alone and let me work. They are usually very relieved and pleased when I take care of them, and glad it is all over. Many of those people become long time customers.
No matter, I still get fooled. I recently spent about 40 or so hours helping a prospective client define his thoughts and the scope of work on about a $150K remodel. He told me he was going to use me to do most of the work, and to provide overall supervision on the job. He changed his mind after he got my typed scope of work, and decided to do it himself. 40 hours gone. I don't get all the work I bid on, and don't expect to. But I would have never spent that kind of time with him had he been honest with me and told me that he might try to do it himself. With my road map, he decided to take the plunge.
However, my fellow contractors are providing a great education for him. The paint contractor he wanted to hire (and had a handshake agreement with) decided to take a better paying job that will give him work until mid November. The flooring guy that removed and replaced about 2500sq ft of brand new Brazilian cherry flooring wouldn't wait for him, so he has new floors in a house that isn't painted, the walls haven't been moved, and walls/trims/cabinets haven't been prepped and painted. The granite top guys are coming out, but without his painter, they will be installing new tops on cabinets that are to be refinished in place. The cabinets have all new hardware, hinges, slides, and other hardware and they haven't finalized a paint color.
More education will be coming for him, no doubt. He is now 2 months behind the original schedule (that's right... two) and is hoping to finish the work by November 1st. He feels this could be done and they will probably make it since he cut the scope of work literally by 50% from what we planned together.
I am not "bagging" on anyone that contracts for themselves. I have a lot of clients that take on smaller projects all the time with great success. They pay the right amount, get a good job, etc. The complaint I hear the most from them is that they can't get the contractors to finish 100%.
This subject just hit a hot spot with me and I thought I would chime in with a look from the other side of the fence.
Robert