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Why 3 Bids for Your Construction Project Are Necessary

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Contractor Bidding for a Construction ProjectWhen you have a construction project to get price quotes for, you should make sure that you get at least 3 bids. Many people foolishly accept the first bid, claiming that they are in a hurry and do not have the time to go through a proper bidding process.

This is nonsense, because nobody should be in such a hurry that they cannot seek competitive bids. One whiff of that and your sole bidding company will put its price sky high. Here are some of the reasons why you should always seek multiple bids, and why 3 bids is a good number.

You Have No Means of Comparison

When you have a construction project you cannot shop for prices as you would in a convenience store – find the lowest price and take it. You are not buying a can of beans, but are looking for a company that can complete your project safely and on time, and at a good but realistic price.

If a price is too low would you know it with only one bid? Too low a price could indicate inferior workmanship or inferior materials – or even both. Most of us have seen ‘Towering Inferno’ and should understand the consequences of shoddy workmanship and substandard materials. Getting more than one bid can give you a point of reference, although three is better.

It is almost as bad if the price is too high – how would you know you are not being ripped off if your sole bidder had no competition? In fact, it is possible that you are being both ripped off and being given shoddy work and substandard materials that do not meet state or federal regulations. You would never know unless your insurers spotted it – and you would likely only choose one of these, probably recommended by your construction contractor!

Reasons for Variations in Pricing

Assuming you take the advice and request bids from three contractors for your construction project, you should not simply accept the lowest! Find out what is included in the price of each bid and make sure that each has been given the same information for its bid.

In many cases, where bid prices are all over the place, it is because of a confusion as to what is required This might be due to a misunderstanding of the requirement, to each contractor being given different information or to different standards being applied. If one contractor is priced well below the other two, take a close look at what is being offered. The materials might be of lower quality or perhaps this firm is working with a different set of data.

How to Choose Bids For Your Construction Project

Your choice should not be on price alone, but on the reputation of the company, the quality of materials it intends to use and also any warranties, guarantees or insurances that are being offered.

That is why it is important to get 3 bids for your construction project. You cannot be sure you are getting good value and a reputable firm from just two competing companies, and 4 or 5 may be too many. Use three and make sure each is working with exactly the same information. Also, do some homework before deciding on the three you ask to quote.

Make sure they get good reviews and that there are no registered complaints against them with the Better Business Bureau. If the companies seem legitimate, then compare their quotes including everything involved in them. Carry out a final online check for reviews or complaints regarding each and then make a choice. You will soon find out why 3 bids for your construction project are necessary.

Renovation Financing

At Intercounty Mortgage Network, we offer several option for renovation financing. Some of our programs include FHA 203k Rehabilitation loans, FHA Streamlined 203K construction loans, FHA 203h Mortgage Insurance Program for disaster victims, One Time Close Modular Home Loans, and our Home Fixer Repair Escrow Mortgage Program. For more information on renovation financing, please contact Anthony DiLeo at (732) 264-2700 x18 or anthony@intercountymortgage.com

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