Building A New Home – The Bidding Process

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When you’ve selected your site and are ready with your design

 

it’s time to review bids and select a builder. Builders will quote

 

square foot prices to give ballpark figures. Use this as a guide

 

for the home size you can afford. But keep in mind there are

 

many other influencing factors.

 

 

 

Don’t begin conceiving the project at your maximum affordability.

 

You’ll need to watch your dollars closely from the beginning as

 

little costs” can quickly go from hundreds to thousands, resulting

 

in major cost overruns. Allowance categories can set dollar amounts

 

for the items you haven’t made final decisions on. For example,

 

low bids may not cover the quality of cabinets you want. Visiting

 

showrooms can help you determine what you can afford.

 

 

 

When reviewing bids, make sure all bidding parties have a mutual

 

understanding of the scope of the project. Expectations should be

 

clearly explained in writing. Phrases like “per drawings and specs”

 

can be too vague. Specification labor bids should also be in as much

 

detail as possible. Know what is included when the work is completed

 

and more importantly, what’s not included. This will avoid unexpected

 

expenses that were not included in the bid.

 

 

 

Look beyond the lowest price. Understand that competitive bidding

 

for residential construction does not always exist. The term “most

 

qualified bidder” is more important than “lowest bidder.” Make sure

 

your comfortable with the people you’ll be working with which

 

includes the builder’s sub-contractors – make sure you get that list.

 

In summary, strive for the most qualified low bidder not just the lowest

 

bidder

Check out our blog every week for our “Building a Home” series

and go to http://www.crewcuttv.com/# to watch videos on the subject.

 

mikebender

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