Subcontractor Bids High

High Bidding Subcontractors

From: JG

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 subs find this out are they going to be tempted to up their price to me due to the fact that I'm new at this and am not an experienced contractor? What is the best way to avoid this?

Thanks very much.

Hi J.G.

Thanks for buying my book. I think the book & my website will alleviate your fears.

Many subcontractors will bid high if they think they can get more money. It could be because they think you are inexperienced. It could be they think someone is desperate. I run across it all the time. I don't take it personally; I believe it is just human nature.

But, when you are informed as to what you should be paying, this is not as apt to happen, as you will be in control.

Using the "Building Costs by City & State" (#5) on my "Getting Started" page (www.byoh.com/gettingstarted.htm) you should be able to determine a ballpark figure as to how much you should be paying for each subcontractor.

As I also state on my "getting started" page, "The Best Place to find the lowest labor prices is on NEW home construction sites...we GC's keep labor costs low!"

One note of caution mentioned in my book and on my website under "Remodeling" is that you can't tear a house down if there is a mortgage on it!

There are ways to accomplish the tear down, but that's a whole other subject.
If you need info on that right away, let me know and I'll respond right away.

Good luck,
Carl