Comparing Apples to Oranges
In residential construction, the bid process often looks a little like this (let’s assume for this example, it’s a bath remodel):
Customer calls 5 contractors to come look at their job.
Customer walks all the contractors through the bathroom and verbally describes what they would like done. Here are a few items from their verbal scope of work:
I would like a new vanity. Maybe a bit bigger.
I want the tub swapped for a shower.
I think I could use a bit more space. Could we move this wall over a bit?
A new toilet might be nice. I really like the one’s with smooth sides.
A few weeks go by and the bids have trickled in. Customer is dumbfounded that there is a $30k spread between the lowest and highest bid. How can this be?
I am here to tell you that all five contractors could have given reasonable, fair bids for the services they are providing. The difference is the services they are providing are not the same even though the customer feels like they told everyone the same thing.
For the vanity:
the cheapest contractor is going to price a $250 vanity from a big box store that comes with a countertop, sink and faucet included.
The most expensive contractor asked more leading questions and heard the customer say they wanted the vanity to match the color of the walls so it blends and have a trash can pull out. Contractor prices a custom vanity from their cabinet vendor with an allowance for a quartz top from their stone fabricator.
For the shower:
Cheapest contractor prices a shower pan liner, cement board on the walls and 1 coat of red guard for waterproofing. They will price a $1.50/sf 12x24 tile and shower rod with curtain.
Most expensive contractor will use a waterproofing solution such as Schluter Systems that provides a complete waterproofing solution that comes backed with a long warranty if installed correctly. They will included a subway tile in a herringbone pattern per the inspiration pic they requested and a frameless showerglass enclosure with the low iron upgrade because the customer mentioned they hate green glass.
For moving the wall:
Cheapest won’t quote it. They don’t want their price to seem too high. If customer ends up still wanting it, they will price it later.
Most expensive will quote it. They will include painting the room next to the bathroom since drywall will need to be patched and trim will need to be reinstalled after the wall moves. They will also include moving the HVAC supply that’s in that wall.
For the toilet:
Cheapest contractor doesn’t know what a “smooth sided” toilet is and they just assume the customer means a normal one. They price an $89 toilet from big box store.
Most expensive contractor prices a skirted toilet per the customer’s request. They also notice that the customer has selected brass hardware everywhere else so they include a brass trip lever for the toilet.
I could keep going but I’m lucky if I still have some of you at this point. My encouragement for you the customer is to try your best to understand what is included in each price. I am willing to bet with a little digging, you will find that what has been quoted is not really the same. Once you figure that out, it’s easy to decide: Do you prefer apples or oranges?