How do I secure comparable bids for a new home construction project?

February 9, 2013 7:16 AM

I am building a new house and would like to secure three bids for the construction of the dwelling (see more below). One of the prospective contractors expressed concern that the bids be comparable - that the contractors are all bidding on the same aspects of the project. Lacking a better plan, I am planning to develop a spreadsheet describing in as much detail as I can the aspects of the project - what parts I want to hire out and what parts I intend to do on my own, the specific make and model of windows and doors, the specific flooring stock, etc. In doing so, I will create a single bid sheet that each contractor can bid on their own terms. Is this a reasonable approach? Are there existing spreadsheets that can be used for this type of thing?

The bid will include framing, sheathing, siding, roofing, installation of windows and doors, interior insulation, drywall, floor, and finish carpentry. Plumbing and electrical will be bid out separately. Painting and installation of the kitchen cabinetry and fixtures is my job.

posted by eirelander to Home & Garden (4 answers total)

Does it make sense to work with an architect? They could prepare the mechanical drawings, and you'd be sure you got the house you wanted- and there would be fewer with ambiguities in the specs.
posted by jenkinsEar at 7:25 AM on February 9, 2013

Ensuring that bids are comparable is an important part of any construction project. But its sounds to me like you're in over your head. You're probably not qualified to tell what constitutes a "comparable" bid, and most contractors already have fairly powerful bid software which may or may not play well with any spreadsheet you come up with. Heck, the construction industry has already done a lot of work in this area, and it's entirely possible that their bids will lend themselves to easy comparison without ginning up some spreadsheet of your own.

The easiest solution? Hire someone else to look at it for you. You're presumably planning on dropping six-odd figures on this project. Spending an extra grand to have a professional who isn't bidding, e.g., an architect or construction manager, review the bids and advise you on their pros and cons. Seems like a better use of everyone's time.
posted by valkyryn at 7:26 AM on February 9, 2013 [2 favorites]

Building Materials
Excavation/Backfill/Rough Grade/Service
Foundation
Framing Labour
Finish Labour
Steel
Roofing
Insulation and Vapour Barrier
Electrical
Rough Plumbing
Plumbing Fixtures
Drywall
Exterior Painting
Interior Plastering and Painting
Flooring
Doors and Windows
Fireplace
Siding
Ventilation
Stairs
Rough Electrical
Light Fixtures
Kitchen Millwork
Fence
Deck
Garbage Disposal
Insurance
Permit

Those are from my budget spreadsheet at work (I work for a general contractor and I am involved in pricing new home construction). Our customers usually pick out (and often source) doors and hardware, kitchens, flooring, and plumbing/electrical fixtures. If those are not decided upon while we're pricing, we put in an allowance that is reasonable.

Feel free to MeMail me if you have questions about any of this.
posted by futureisunwritten at 8:19 AM on February 9, 2013

Best answer: It's the contractor's job to lay out what's in the bid, not the clients. The contractor you are referring to sounds like a) he is trying to psych you out and b) probably normally overbids and then explains it away to his clients that "well, their bids probably didn't include everything mine and they would have tacked on costs..."

I went with the contractor I used (and I interviewed maybe 10 contractors AND got references and over-analyzed everything to death because, yeah, it IS a lot of money and it is your home) for two primary reasons: 1. He had more than one job going at a time (six actually), which said to me that he had cash-flow and it wasn't going to come down to him taking my check for materials and using the money to pay his own mortgage (I've seen that one happen to MANY friends) and 2. he gave me a line-itemed bid - this much for foundation, this much for framing, this much for plumbing, etc. Cost for each line item due when that task was completed. I didn't end up laying out money ahead of time for materials, I didn't go 50/50 with him on any costs.

He wasn't the cheapest, he also wasn't the most expensive. I called all of his references and they checked out. We did a major remodel, tore down exterior walls and doubled our square-footage, and he completed the job in 3 months. So he was super professional. He never missed an inspection with the city.

Those are all things I tell people to look out for. So have the contractor you're talking to give you his bid, and then see how other bids measure up to his, and question all of them if they are different. A knowledgeable contractor should be able to give you a bid within a week. If he doesn't, either he isn't knowledgeable or he doesn't really want your job. Follow up once and then move on if you don't get the bid.

But don't do the contractor's work for him by creating spreadsheets. That's something that we did when we were building $1million + commercial projects, but isn't necessary here.

By the way, I got references for contractor's by asking people in the neighborhood who'd had work done - I knocked on a lot of stranger's doors - but ultimately I was referred to the contractor I chose by my architect, who I found on Angie's List (we interviewed lots of architects too - he was the only one who started sketching ideas for us during the first consultation meeting).

Good luck!
posted by vignettist at 7:24 PM on February 9, 2013 [1 favorite]