This is one of those topics that can drive a professional remodeler or builder crazy as consumers struggle with what they are asking for and certain industry service providers don’t take the time to understand the subtle, but important differences.
You begin by contacting more than one person to discuss your remodeling and renovation requirements. You will be faced with some many differences from the initial inquiry, to the follow-up communication, delivery of an estimate and completion of the project.
No two companies you consider are alike, from their experience, processes, sub-contractors used, materials used or even the reputation to stand behind the work long after the job is completed.
UNDERSTANDING QUOTE, BIDS & ESTIMATES
When initially contacted for a project, we often receive a request for a “bid.” And other times people may request a “quote” or “an estimate”. However, each term carries distinct meanings and implications that are crucial for effective communication and project execution. We will clarify the differences before explaining how Crossbeam Builders differs on any of these interpretations.
CAN I HAVE A QUOTE FOR MY REMODELING OR RENOVATION PROJECT?
A quote is a formal document that specifies a fixed price for a particular job or service. It is typically binding for a detailed duration. The main characteristics of this document are:
- Legally Binding: Once a quote is accepted, the provider is obligated to complete the work at the quoted price.
- Specificity: Quotes are detailed and based on a thorough understanding of the project requirements.
- Time-Limited: Quotes often include a validity period, such as “valid for 30 days.”
CAN I HAVE A BID FOR MY REMODELING OR RENOVATION PROJECT?
A bid is a proposal submitted in response to a request for proposals (RFP) or a competitive tender. It outlines the contractor’s proposed costs for completing a project. The main characteristics of this document are:
- Competitive: Bids are part of a competitive process where multiple contractors submit their offers.
- Detailed: Bids typically include comprehensive information about the project scope, timelines, and costs.
- Large Projects: Bids are frequently used in government contracts and large-scale construction projects.
CAN I HAVE AN ESTIMATE FOR MY REMODELING OR RENOVATION PROJECT?
An estimate is a rough approximation of the costs associated with a project. It is less formal and not legally binding. The main characteristics of this document are:
- Approximate: Estimates provide a general idea of costs based on initial assessments and assumptions.
- Flexible: Estimates can change as more information becomes available or project details evolve.
- Used Early In: Estimates are often utilized in the early stages of discussions to gauge feasibility and budget.
THE DIFFERENT REASONS WE DO NOT PROVIDE A QUOTE, BID or ESTIMATE
We decline to participate when owners seek competitive “bids,” as this approach does not align with our project management philosophy. And while “Quotes” and “Estimates” are still generally used in our dialogue, we provide more specific interpretations and descriptions.
At Crossbeam Builders, we need to begin to understand if we are a right fit for you becoming our customer, as equally important for you determining to select a contractor. The conversations will lead us to engage in a “rough estimate” or, more accurately, a “budgetary conversation”. The distinction here lies in ownership since the homeowner controls the budget range.
This budget, combined with the homeowners needs, wants, and expectations will drive the project scope. This budget also may impose limitations. For example, a Kitchen Remodel may include countertop options that come in Granite, Quartz or Marble. The budget will help define realistic material options to offer.
A PLAN AND DOCUMENT BETTER THAN A QUOTE
Upon understanding the budget and rough estimate, we enter in a design agreement, called here at Crossbeam Builders as a Project Development Agreement (PDA). It is a critical step that successful remodelers use to break down the individual processes, then finalize the plans and selections.
This Project Development Agreement allows us to establish the official quote. This quote is presented as a Scope of Work (SOW) that includes a detailed price for the project.
SO I AM PAYING TO GET A QUOTE?
Yes, but it is much more than a random price guess. The “quote” for lack of a better word is a detailed accounting of the steps, materials, labor and prices that will all come together. It really is a small price to pay to leverage our extensive experience of identifying all the variables. It also allows Crossbeam Builders to really know you are interested.
The Scope of Work allows us to revise the document if anything changes, small or big, during the remodeling or renovation project. Most important, it minimizes the risk for both parties to avoid misunderstandings and scope creep. Everyone needs to be comfortable at monitoring and controlling every change while ensuring each change is necessary, or compensated for in time and/or money.
If you’re serious about your investment, a Project Development Agreement (or design agreement) is an easy decision. It protects your time, your money and your vision. So you much more than just a quote.
And most of all, a Project Development Agreement (along with the quote) provides everyone with peace of mind before embarking on such an important aspect of one of your most valuable investments – your home.