When your bid is higher than expected - how to get it lower

A professional contractor should know their costs. If they give you a bid, this is based on their calculated costs and risk.

If you are comparing bids ‘apples to apples’ and some companies are significantly lower, you have to ask yourself, how can they can afford to be so much ‘cheaper’ doing the same work? There can be some legitimate reasons, like the scope of the work and certain assumptions, they somehow have lower overhead costs, or they have a special deal on materials. Most often, though, something is sacrificed.

When you are looking for high-quality, with longevity and attention to detail, expect to pay what that is worth.

There is a Right Way and the Wrong Way to Trim Prices...

The Wrong Way to Trim Prices

1. Cutting Corners - Skimping on excavation and base, proper permits, or product quality, which can come back to haunt you later when things fail or you get in trouble with the county.
2. No Warranty - they can speed through the job and cut every corner and not worry about coming back when it falls apart.
3. Underpaying Employees - Using unskilled labor with no supervision or not paying experienced people creates burnout and low-quality workmanship.
4. They are going to fit you in – they will show up when they feel like it and your job will take forever to complete
5. No Contract - They plan to charge more with multiple costly change order or tack on more at the end Not knowing their costs or margins - Good for you on getting a deal, but this is not sustainable for the contractor. They may not be in business when you need a repair or the next time you need work done.
6. Cash Discount – if they work for cash, pay workers in cash, don’t pay taxes or proper insurance they can save money, but again, this is not a sustainable company.
   

The Right Way to Trim Prices

The very first step is to communicate your rough budget numbers and what parts of the project are needs versus wants. If the number quoted comes back too high, ask your contractor how to get the numbers down. No professional contractor should be offended by this, they should be able to rethink the project to meet your budget.

1. Breaking the project into phases - can spread the total cost over several years and you still get what you want
2. Decreasing the size or scope of the project – maybe a smaller patio will work fine
3. Pricing out options for different materials – there are lots of great options in different price levels
4. Be flexible with timing - schedule projects in slower times
5. Think about what work you can do yourself- such as removals at the start of the project
6. Think about what you have that doesn’t need to be replaced or can be reused - such as dividing existing perennials instead of buying all new ones.

Finally, the best thing you can do to keep your costs down is proper planning and communication at the front-end. Don’t rush the planning phase, make sure you have all permits if needed, and be patient and flexible with the process.