Contractor Bids

Contractor Bids High

Summary: A bid for construction may be high if a contractor thinks he can get more money. Be informed as to what building costs really are.

Carl, I just bought your book and am just about to pick it up and read it, but I had to ask you this question that has been on my mind.

My wife and I are about to embark on tearing down our house and building a new one.

I will be the general contractor and this will be my first project. When the contractors or subcontractors find this out are they going to be tempted to up their contractor bids to me due to the fact that I'm new at this and am not an experienced general contractor?

What is the best way to avoid this?

Thanks very much, J.G.

Hi J.G. I think the book & my website will alleviate your fears.

A few contractors and subcontractors will try and get more money for the job at hand because they think you are inexperienced.

I have it happen to me from time to time and I have experience. I don't take it personally as I believe it is just human nature to try and get more money if they can.

But if you are informed as to what you should be paying for each of the categories you will be contracting jobs for, you won't have to worry if you are being charge to much. You will be in control.

By using the construction cost software you should be able to determine a ballpark figure as to how much you should be paying for each category and each contractor from the categories breakdown on the Construction Cost Estimate.

Construction Cost Estimate - Click to enlarge

The cost estimating software breaks down each of the contracting categories on the Total Cost Estimate Breakdown into contractor or subcontractor labor and materials.

It almost makes getting construction bids fun!

As I also state on my Getting Started page, the best place to find the lowest contractor bids is on a job site for a new house. That's because general contractors for new home construction try and keep costs low.

One note of caution I mention on my House Tear Down page is that you can't tear a house down if there is a mortgage on it!

Be sure and read that page carefully as well as How to Control Construction Costs.

Good luck, Carl Heldmann