Building A New Home – The Bidding Process






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



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

and go to to watch videos on the subject.



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