Is That Price a Little TOO Right?
Don't Be Bamboozled by Lowball Bids
Comparing remodeling bids is a process of elimination that takes into account the level of services, materials and price. Unfortunately, many homeowners are tempted to look only at the price. One of the most common mistakes homeowners make is being tempted into taking the lowest bid. Naturally, everyone wants to save money whenever possible, and therein lies the danger!
Among companies in good financial health, responsible bids will typically vary
by no more than about 20 percent. Overhead varies from large to small firms. An
unnaturally low bid is the first clue of possible danger.
If a remodeler, after reviewing your project, sits in his truck for a few minutes and then brings back to your door a bid scrawled out on some stock form take his haste and quick-draw approach as an indication of the care he will put into your project. Never Ever Sign Anything When It is Handed To You!!
A Word About Deposits
Reputable remodelers have charges at most, if not all supply houses. They also have cash reserves as well as company credit cards. Very very seldom is there a justifiable reason to ask for a deposit. The remodeler should have cash reserves to cover payroll. Charges, either at supply houses or with credit card are 30 day revolving accounts.
Only on the rarest occasions has RDI had to pay cash for some odd item that a custom selected. We have, from time to time, required a deposit, but those times are for safety reasons. If a customer is entirely unknown to us and raises our suspicions we have been known to ask for a deposit up to 30% of the project.
Except in such rare situations a remodeler should bill at the end of the project or every 30 days which ever comes first. It is a privilege to not have to pay until the job is completed. Customers should not abuse that courtesy by not paying the bill in a timely fashion. Usually that means the money should be in the remodeler’s hands within 5 to 10 days of the date of the bill.
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