3. Contractor’s bid estimates. These are the price “quotes” provided by contractors when competing for a remodeling or house addition project. This kind of estimate reflects the price they expect to charge to do the job. These estimates are detailed. The estimates are based on conversation about specific materials to be used, quality of materials in general, expected quality of workmanship, and schedule. They might state specific costs for each item of material and each type of work. They will state a “bottom line” price – the price for which the contractor is willing to complete the job described. The price will combine materials and labor into a single total estimated cost. Homeowners need to pay attention to the wording to be clear whether the bid is an estimate (estimated cost, subject to change) or a bid/quote (price for which the contractor is willing to do the job).
4. Fixed Price Estimates are the most detailed. Each item of material will be listed, including quality. Every fixture, fitting, etc. will be listed. Quality of workmanship will also be stated in general terms and in specific terms, such as “industry standard” workmanship quality and specify that painters will apply a coat of primer and one coat of paint. The price quoted in these estimates is guaranteed. It will also probably have some statement that any problems encountered or changes made are outside the scope of the contract and will result in additional charges. If accepted, this estimate will become part of the final contract for the job.
When dealing with contractor estimates and contracts, it is important to know about the different types of contractor estimates. You need to know what the estimate is designed to tell you. Before you accept any estimate, review all of the details carefully. Insist on a fixed price estimate as part of your contract before you sign.
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