Why do contractor bids vary so much?

More competitive bids often occur when the general contractor is familiar with the owner or architect, if the job is close to their office or if the project is the kind of work in which they specialize.

Are contractor quotes accurate?

Asking for an estimate is a good way to rule out contractors or projects that are too expensive, or contractors who offer suspiciously low prices. Quotes are more accurate than estimates but are most often used when getting prices for materials from suppliers and from contractors for small jobs.

What should a contractors estimate include?

It isn’t uncommon for contractors to give an “estimate” of how much they anticipate the work will cost. An estimate should be the contractor’s best professional assessment, including the cost of hiring any subcontractors, the price of materials, and any other labor involved.

How do I know if my contractor’s price is too high?

What to Say When Your Customer Says ‘Your Price is Too High’

1. “Gosh, I didn’t think it cost this much.”
2. “OK, is there any sort of discount if I pay cash?”
3. “Well, guess I’ll need to wait till next year.”
4. “I’m still waiting on some other estimates.”
5. “That’s quite a bit higher than I thought it would be.”

Are contractor prices negotiable?

A: Yes, you can negotiate with a contractor; the trick is doing it without making it feel like a negotiation. Anytime you’re haggling over someone’s work (versus a mass-produced product like a car or flat-screen television), look for a way to ask for a lower price without any suggestion of insult.

Why are contractors prices so high?

The Contractor’s Desire to Win the Job If a contractor is having a slow period, they want more jobs to keep their crews busy. They are likely to be more ‘aggressive’ on pricing potential projects in order to win the bid. Alternatively, if a contractor is inundated with jobs they will often bid on the high side.

Can a contractor change a quote?

With that being said, a quote is a fixed price offer that cannot be changed once accepted by the customer, and it is often only good for a specific period of time.

How long should it take a contractor to give you a quote?

If they’re still interested, ask if they can deliver the estimate to you within two to five days. This accomplishes two things: It reinforces that you’re a serious, valuable customer, and it demonstrates that you’ll be clear and reasonable about what you need to be happy if you were to move forward together.

How do you negotiate a quote price?

Negotiating a Quote

1. Add or remove products.
2. Change the quantity.
3. Apply a discount to the total price.
4. Add or change the shipping method.
5. Add comments.
6. Send the updated quote to the buyer, or save as a draft.

How do you ask for a better price quote?

Phrases to use when negotiating a lower price

1. Phrases to use as a buyer…
2. Phrase 1 “How Much!”
3. Phrase 2 “XYZ are doing it for £50”
4. Phrase 3 “I’m sorry but you’ll have to do better than that”
5. Phrase 4 “I can’t take that to my boss!”
6. Phrase 5 “If you can get the price to X I think I can sell that to my boss/wife/husband”

Why do contractors ask for the quoted price?

It helps to keep them on budget and it keeps me from eating the difference if they choose something more expensive. Many contractors operate in nearly the opposite way. The quoted price is always for the cheapest posible job. This “bid it to win it” mentality means that everything costs more every time.

Should you choose a contractor based on price or markup?

Any owner who selects a contractor based on their price has no one but themselves to blame when things go sideways. Markup isn’t profit, it is the money needed to make sure the contractor can complete your job, pay his bills and if he’s doing things right, make a profit on the job as well.

Why do contractors include material costs in their prices?

As one other answer mentioned when a contractor includes material costs sometimes the customer wants to try to provide materials to save money. This rarely works in anyone’s favor. Contractors have access to better prices than consumers and the customer never understands exactly what materials are needed.

Why do contractors charge more for labor than consumers?

Contractors have access to better prices than consumers and the customer never understands exactly what materials are needed. If my customers want to provide materials I usually charge a lot more for labor because I will inevitably end up paying my guys to stand around and wait on the materials we need.