Let's Talk Bids
- contactmscgroup
- Feb 15, 2021
- 2 min read
Before you jump the gun and choose a contractor based on price, let’s dissect each of these bids and how the contractor came up with the price they have proposed to you.
Assuming you already have an idea of what you want, it’s time to shop around; call a few contractors and get a few bids.
The bids we are going to discuss are the lowball, median, and highball. Before you jump the gun and choose your contractor based on price, let’s dissect each of these bids and how the contractor came up with the price they have proposed to you.
Bid #1 The lowball
Any honest and good contractor will tell you to be weary of the lower end bids. With over 25 years of experience we know that it's typically too good to be true. With this type of bid the project begins as agreed upon, but slowly some contractors start tacking on additional costs to the project. In the end you spend A LOT more than the original bid.
Example: You are given a price for a complete kitchen remodel, but the contractor leaves out any price that did not include the costs of bringing any electrical outlets up to code. Or you get a bid for new cabinets and later are told that price did not include the trim or hardware.
The low ball usually leaves out detail work that is part of the job. So if you decide to go with the low ball, make sure you ask a lot of questions and clarify what exactly is included.
Bid #2 The Median
This is most likely a fair price. Often these contractors will give you a range. The range varies depending on the amount of structural changes needed, moving plumbing around, or materials used. (These are just a few examples)
Bid #3 The Highball
Two different reasons come to mind when a contractor gives a highball bid. 1: They work with higher end materials therefore there is a higher cost. Or 2: They don’t really need the work, so they toss out a high bid knowing they probably won’t get the job. If they do win the bid then they are happy to do the work for the higher price.
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