Step 21 of 44Contractor Phase

Get Detailed Bids

A detailed, itemized bid is your best protection against budget surprises. Vague bids with lump-sum pricing hide risks that become expensive change orders. Getting 3+ detailed bids lets you compare apples to apples and negotiate from a position of knowledge.

Quick Summary

Bids to collect

3-5 minimum

Response time

1-3 weeks

Key focus

Itemized breakdown

What to Include in Your Bid Request

Contractors can only give accurate bids if you provide complete information. Your bid package should include:

Complete Plans

Architectural drawings, structural engineering, and any other approved plans. Incomplete plans lead to incomplete bids.

Specifications

Material selections, fixture specs, appliance models, flooring types, and finish levels. The more specific, the more accurate the bid.

Site Information

Survey, soil report, utility locations, access constraints, and any known site conditions that could affect construction.

Timeline Expectations

Desired start date, any hard deadlines, and flexibility. Rush timelines increase costs.

What a Professional Bid Should Include

1

Itemized Cost Breakdown

Line-by-line costs for each major category. A proper breakdown includes:

  • Site work: Excavation, grading, access, protection
  • Foundation: Footings, slab, waterproofing
  • Framing: Lumber, labor, hardware
  • Roofing: Materials, labor, flashing
  • Exterior: Siding, windows, doors
  • Plumbing: Rough-in, fixtures, connection to main
  • Electrical: Panel, wiring, fixtures, connection
  • HVAC: Equipment, ductwork, installation
  • Insulation: Type and R-value specified
  • Drywall: Installation and finishing
  • Interior finishes: Flooring, trim, paint, cabinets
  • Appliances: Specific models listed
2

Detailed Timeline

Phase-by-phase schedule with specific durations:

  • • Site preparation: X days
  • • Foundation: X days
  • • Framing: X days
  • • Rough-in (plumbing, electrical, HVAC): X days
  • • Insulation and drywall: X days
  • • Interior finishes: X days
  • • Final inspections: X days
  • • Total project duration: X weeks/months
3

Payment Schedule

When payments are due and what triggers each payment:

  • Contract signing: 5-10% maximum
  • Foundation complete: 10-15%
  • Framing complete: 15-20%
  • Rough-in complete: 15-20%
  • Drywall complete: 10-15%
  • Finishes complete: 10-15%
  • Final completion: 10-15% (held until punch list done)

Key principle: Payments should trail work completed. Never pay ahead of progress. Hold 10-15% until all punch list items are resolved.

4

Inclusions and Exclusions

Clear statement of what is and isn't included in the bid:

  • • Permit fees (often excluded)
  • • Design and engineering (usually excluded)
  • • Utility connections and fees
  • • Landscaping restoration
  • • Appliances and fixtures
  • • Site cleanup and debris removal
  • • Final cleaning
5

Allowances Specified

If allowances are used, they should be specific and realistic:

  • • Flooring allowance: $X per square foot
  • • Plumbing fixtures allowance: $X total
  • • Lighting fixtures allowance: $X total
  • • Cabinet allowance: $X per linear foot
  • • Appliance allowance: $X total

Red Flags to Watch For

Large Upfront Payment

More than 10% upfront is a major red flag. Reputable contractors have credit with suppliers and don't need your money to buy materials. Huge deposits are a common tactic of contractors who disappear or go bankrupt.

Vague Allowances

"Flooring allowance: $5,000" without specifying square footage or type is meaningless. Unrealistic allowances make bids look lower but guarantee cost overruns. Always ask: "What specific product does this allowance cover?"

Lump Sum Only

A bid that just says "ADU Construction: $200,000" without breakdown is useless for comparison and gives contractors room to cut corners. Demand itemization.

Significantly Lower Price

If one bid is 30%+ below others, something is wrong. They may have missed scope, plan to use inferior materials, or will make it up in change orders. The lowest bid is rarely the best value.

Verbal-Only Quotes

Any contractor unwilling to put their quote in writing is not worth considering. Verbal quotes are unenforceable and change without warning.

No Timeline

A bid without a detailed schedule suggests the contractor hasn't thought through the project. Projects without clear timelines drag on indefinitely.

How to Compare Bids Effectively

Create a spreadsheet comparing these elements across all bids:

Total price (including all fees and allowances)
Cost per square foot
Timeline (total project duration)
Payment schedule (especially upfront amount)
Allowance amounts and what they cover
Exclusions (what's NOT included)
Warranty terms
Change order process and markup
Insurance and licensing verification
ADU experience (number of projects)
Reference quality
Communication responsiveness

Frequently Asked Questions

How long should I wait for bids?

Give contractors 2-3 weeks to prepare detailed bids. Rush timelines lead to incomplete or inflated bids. Good contractors are busy and need time to properly estimate your project.

Should I share other contractors' bids?

You can share the range ("I've received bids from $X to $Y") but don't share specific competitor bids. This can lead to contractors lowering quality to match price rather than providing their best value proposition.

Can I negotiate bid prices?

Yes, but focus on value engineering rather than just price cuts. Ask: "What could we change to reduce costs while maintaining quality?" Experienced contractors can suggest alternatives that save money without compromising the project.

What percentage difference is normal between bids?

Expect 10-20% variation between qualified contractors bidding on the same plans. Larger variations (30%+) suggest either the low bidder missed something or the high bidder is overpriced. Investigate significant outliers.

How do I handle change orders later?

Ask about their change order process now. Good bids specify: (1) all changes require written approval before work starts, (2) markup percentage for changes (typically 15-20%), and (3) how timeline impacts are handled.

Ready for the Next Step?

Once you have detailed bids from 3+ contractors, the next step is checking their references and visiting completed ADU projects to verify their work quality.

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