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Should You Always Hire
the Lowest Bidder?

THAT DEPENDS!
Is the Bid Responsible?
Are There Hidden Costly Errors?


What is the lowest responsible bidder?
The lowest responsible bidder is the contractor that submits the lowest bid that still includes all of the materials, labor, design and quality features desired and required as well as other needed expenses along with a reasonable earned profit for the contractor without cutting any corners or making any mistakes or omissions.

What is the difference between the lowest bidder and the lowest responsible bidder and which one do we highly recommend? The low bidder is only the best choice if the bid is responsible, accurate, thorough and carefully reviewed and explained to you so that you know it includes all of your requirements requested, added, changed and discussed. Only then do we recommend choosing the low bidder. If the low bid does not include all of these requirements, we highly recommend you move to the next lowest bid as the recommended best choice for your project.

Does Welcome Home Improvement always strive to be the lowest responsible bidder? Yes, we try very hard to be the lowest responsible bidder with the key emphasis on responsible. There will always be someone willing to come along and undercut an accurate, thorough, appropriate, professional estimate with an irresponsible bid that is full of errors, omissions, shortcuts and incompetent guesswork along with shoddy inferior materials.

What can result if an irresponsible bidder is chosen for your project? Focusing too much on finding a bid that is low causes a great deal of regret including headaches, frustration, additional expense fixing mistakes and shortcuts and even dangerous conditions because the lowest bid is often too low because of incompetence or dishonesty by a shoddy contractor.

There are many irresponsible contractors that do not know what their costs are, are uninsured, are desperate for work, work for unskilled labor wages and do not pay their bills or their income taxes and often do not apply for or get a permit which is illegal. The homeowner can become responsible for a variety of unpaid bills and suppliers can and often do place a mechanics lien against your home equity. Costly legal problems can also result if things go wrong and they often do when an irresponsible bid is dignified with acceptance .

How can you avoid choosing an irresponsible bid when they are so commonplace? Be sure to choose carefully which contractors you ask to bid on your project. Then be sure your chosen contractors work hard to respond to your concerns, questions and ideas with reasonable thoughts, suggestions, explanations and client friendly policies in support of customer satisfaction and all American everyday values and integrity.

What does timing and workload have to do with the sometimes large differences in the amounts of several contractors  estimates? Timing is everything in the construction and remodeling business. If a contractor is extremely busy and will find it extremely difficult to find time in their schedule to take on any more work , they will tend to bid a very high price thinking it will be worth the added effort and sacrifice of hustling and bustling to get it done even with often monumental time contraints.

On the other hand, if a contractor is badly in need of work because business is very slow, they will tend to bid much lower to get their schedule filled up quickly. Perhaps they had a cancellation or have a few days or weeks to fill before they are booked solid.

There are also failing and newer less established contractors who are often or always desperate for work. Many always bid low but seldom satisfy customers due to a lack of ability or integrity. These types should generally be avoided for several reasons

Where do professional contractor rates, prices, quotes, costs come from? We survey market rates quarterly and base our prices on the local marketplace rates, the cost of doing business including insurance and other overhead plus reasonable wages, benefits for skilled labor and market profit levels. We then compare this against national averages in published contractor, remodeling and new construction pricing guides to be certain we are on the mark. No one wants to be taken advantage of including the customer or the contractor. This is the best practice in the home improvement, remodeling and new construction marketplace.

What payment arrangements does Welcome Home Improvement offer? Most large projects are quoted with a fixed price to minimize customer risk and stress. Small projects are typically by the hour plus materials and other expenses.

We hope we can do business honorably with all of you. Thank you for reading our thoughts on responsible bidding.

We Look Forward to Serving You!

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