Understand how contractor quotes are super important

Home remodeling can be a complicated affair. That’s why it’s crucial that you find the perfect contractor for the job. But how do you know who’s right for the job? The first step is to gather several contractor quotes.

Whether you’re planning a large-scale home renovation, a kitchen remodel or just want to get your rain gutters cleaned – you need to have sufficient knowledge to make an educated hiring decision. Here’s our handy guide to hiring the right kind of workers around the house.

Without a doubt, information is power. Especially when it comes to real estate. Therefore, when embarking on your remodeling journey — be it a bathroom renovation, a kitchen improvement, or a bedroom remodel — this is the kind of information you NEED to know.

And, that’s why, contractor quotes are important. It’s more than a document that outlines the estimated cost for the construction services you request. It gives you a glimpse into the type of contractor you’ll be dealing with if ever you decide to hire them.

What are contractor quotes?

Contractor quotes are expected costs that construction professionals submit to complete your home improvement project. The contractor calculates this approximate value by getting quotes for the raw materials from the suppliers, accounting for taxes, overhead, subcontracts, and equipment costs.

Generally, contractor quotes are only valid for a certain period of time – usually about a month. That means that the builder has only that much time to buy the materials or commodities at the given price. The obvious reason is that the price of materials may fluctuate based on supply and demand. That’s why there is often a time frame mentioned in contractor quotes.

A good example of how changing market prices affect work and cost is an excavator whose costs depend on the price of fuel at the time he actually does the work.

How to request a quote from a contractor

The first step before hiring someone for your project is to invite your shortlisted contractors to submit a bid or estimate. You must state your purpose clearly and the specifications of the kind of work you expect. The more exact you make your request, the easier it will be to compare bids and offers later.

Here’s how you can go about requesting contractor bids or quotes:

• Figure out the type of contractor you need for your home renovation project. Is it going to be a general contractor, a specialized contractor, or a combination of the two?
• Give complete details of your project’s needs.
• Keep a list of questions ready that you’ll ask the contractors as you accept bids. 
• Compare the contractor bids
• Choose the best contractor. 

Read more: 10 questions to ask before hiring a contractor

How to hire the best contractors?  

If you’re looking for a licensed contractor who understands your project, is trustworthy, and reasonable, the best route to take is through Kukun Find a Contractor. The free online tool will help you hire the most reliable professionals – at the click of a button! All you have to do is add your residential address, and the tool will do the rest.

You can access:

• Information about all the remodeling or construction projects in your area
• The name of the contractors working on them
• The contractor’s work history
• Their business reputation based on reviews, complaints, and accreditations
• Their licenses and online presence
• Other additional relevant information about them

Estimate vs. fixed-price proposals: What is the difference?

In the construction industry, an estimate, bid, quote, and proposal can mean different things. For example, the terms estimate and quote are often used interchangeably while a contractor bid or proposal may result in a contract if a prospective client signs it. It’s important to know the difference between a construction estimate and a proposal to ensure the success of the remodeling project.

Proposal

A proposal is a detailed document submitted to the customer in order to win their business. It includes quotes from suppliers for raw materials, proposals from subcontractors, and estimates of labor costs, taxes, and other overhead. It mentions a markup of the contractor’s profit, a timeline for the project completion, and a schedule for all the payments during the renovation process.

Estimate

Contractors look at the specifications for a project and determine the raw materials and labor they need by discussing it with their suppliers. Contractors generally give their customers estimates before or during drafting out a bid or proposal.

Estimates are usually free of cost. However, some contractors – usually with a formal education in construction – charge for the time it takes to provide a thorough estimate.

Read more: Construction estimating software

How many bids should I get from a contractor before hiring them?

The best bet is to have two to five quotes from contractors. That will give you a good mix of skills, pricing, and experience. When comparing your customer quotes, you should check if the prices are competitive and well put together.

Solicit at least three bids to get an idea of the general price range. After considering the costs, you can select your contractor based on the type of communication, creativity, and flexibility they exhibit.

After all, you’re going to be interacting with this contractor a lot during the course of the renovation project. It’s important to hire a contractor who’s respectful, punctual, and has competitive pricing. Your final goal is to get a high-quality project completed at a fair price.

If you only talk to one contractor, how will you know if you’re getting the best deal?

How is a contractor quote written?

If a contractor wants to keep the work coming in, they should submit an effective contractor quote outlining the terms and conditions of their services. Here are some of the steps.

• The contractor reviews the scope of the home improvement project.
• Provides a tentative timeline to complete the work.
• Determines and mentions the types of work that will need subcontractors.
• Puts together an estimate for the material costs, labor costs, and other expenses. 
• Outlines the terms and conditions.
• Submits a competitive cost estimate.

Read more: Change order process

Last thoughts

Before your construction job begins, whether it’s a small-scale job on a residence or a full-fledged renovation on a commercial building, getting the cost estimates is a must. Contractors give you an estimate of what they would charge to complete the work. And, you get a good idea of your expenditure. 

Just make sure that you are specific and maintain clear communication with your contractor thereafter. It will help you steer away from any kind of shipwreck.

Planning a home renovation? Try Kukun’s home remodel cost estimator. It’s free, easy, and convenient!

Written by Ramona Sinha. August 30, 2023

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.