The Numbers Game: How to
Select a Contractor
By Jane Hampton
Dear
Jane,
We are renovating our home to make it wheelchair accessible for our
son and have received bids, very different bids, from three contractors.
Two of the bids include “allowances,” while the other
does not. Having never done this before, what exactly is an “allowance” and
how do we begin to evaluate each bid and select a contractor?
Barb, Apple Valley, MN
Dear Barb,
What a fun time for you, however, I sympathize with your confusion.
Here are a few guidelines to assist you in reviewing the bids and
selecting a contractor for your home access project:
Apples-to-Apples: The
first step in any successful bid process is to ensure the design,
details and information going out to contractors for bid is equal
in scope, enabling them to provide bids that compare “apples-to-apples.” This
can be done by defining the design/access solutions, all the products
and materials prior to requesting bids so you can ensure each contractor
is bidding on the same information.
Professionalism and Accountability: If you are not already familiar
with a contractor’s suitability for your project, ask them
for a list of referrals … then follow through and contact
them. Asking previous clients about a potential contractor’s
experience working with home access, their sensitivity to the unique
needs and schedules of a family with a member having a disability,
finish quality, attention to detail, meeting timelines, sticking
to the original bid, etc., are issues to be aware of before getting
involved with them . . . especially if you don’t have an
independent company assisting you with project management.
It is also important that you request information from each of the
contractors to ensure they are appropriately licensed and carry insurance.
The Numbers Game: An
allowance is a dollar amount that includes the total project cost,
but is set aside for a specific item that has yet to be selected
or finalized (i.e., plumbing fixtures, flooring, etc). If you don’t
use all of the money reserved for the selected item(s), the remainder
of the allowance is reimbursed back to you. If, however, your selections
cost more than the allocated allowance, you owe the additional
amount to the contractor.
Establishing the right
amount for allowances can be tricky and a “desperate” contractor
may play the game of providing you with an unrealistically low allowance
allowing him to present a “low bid” hoping you will select
him based on price…so watch out! You may owe more money at
the end of the project for selected items, which exceed the allowance
amount. Making selections prior to putting your project out-to-bid
can avoid this mistake.
Your Budget to Bank
On: Examining the numbers can tell a story; in a perfect world,
the ideal bid is the one that has the lowest overall base price
and the highest allowance amount built into it. This combination
provides the most money to go “shopping” with
when picking out allowance items as well as the budgetary reassurance
of being the lowest bid on the base items.
Your “Gut” Level: Finally, which contractor do you want
working on your project and be in your home every day? Keep in mind
that the person from the construction company that went through your
home when the project went out-to-bid may or may not be the person “swinging
the hammer.” Contractors and their sub-contractors often work
as a team and may have a foreman that will be the main contact through
the duration of the construction. If meeting this person is an important
element in your decision, you should request to meet those individuals
who will be your primary contact.
Good luck to you! Send us
photos when your project is done.
Do you have a question?
Send your question in and we will cover your questions in future
issues of Access Press. Please send them to access@accesspress.org or
call 651-644-2133.
