How to Bid Remodel Jobs

In this economy, with the downturn in housing, builders are suffering. Many are trying to move into remodeling to keep busy and to keep the cash flow going. But remodeling has some differences from plain building that can catch the newcomer to the field unaware if he does not educate himself first.
First off, the contractor is working on an existing structure, not building fresh. He and his team will have to work around occupied space, taking care to leave the areas that are not to be remodeled as untouched as possible. This means, for example, taking care to mask off open areas before sanding hardwood floors, so the dust doesn’t get everywhere.
During the walk-through and initial contacts with the possible client the contractor will need to note all areas that are to be remodeled, as well as areas that are not, but are adjacent and will need protection from remodeling activities. The bid will have to take such protective steps into account.
What are things the client wants changed, but not rebuilt? In this category are jobs like refinishing cabinetry and replacing counters or appliances. And how do they want it done? Are they hoping/planning for exact replacement sizes, so there won’t need to be any fiddling with fit? Are they switching power sources from gas to electric, or vice versa?
Also, the building where the job will be is occupied, and the workers will have to work around the occupants. This may affect hours. There are probably surprises hidden in the woodwork that the owner doesn’t know about and that the contractor won’t discover until getting into the job.
So a possible client calls and wants a bid on a kitchen remodel. The contractor comes to the house and does the walk-through. The client wants to refinish the worn hardwood floor, refinish the cabinetry and add moldings, install a new stovetop and oven and change both from the existing gas to electric, remove old countertops, and install new laminate counters. The client is working without a designer.
The contractor must measure the floor, cabinetry, counters, discover the dimensions of the old vs. new appliances, and plan for capping off the gas line and running electrical as needed. The contractor must have or find a source to refinish the cabinets.
Then the contractor writes the bid.
- Define the scope of work as exactly as possible.
- Break down all tasks and labor, providing time estimates for each part of the process. The pricing of all supplies should be based on actual current prices, not guesses based on history.
- Include a line item covering contingencies (things that come up during the job).
- Define as well as possible what would trigger a redefinition of the scope of work and major renegotiation of the contract. And if that is not possible, at least include a sentence that such a redefinition and renegotiation are possible, with sufficient changes to the job.
- Include references.
Lastly, if the contractor has his own employees who can do some work and also sometimes uses a subcontractor for the same work, and the prices of the labor for these people differ, include pricing for either as an option. Clients will often appreciate being given the choice.
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