There is an old adage that to select a contractor you should just collect 3 bids and choose
the cheapest one. Or pick the one in the middle. This method of selecting a contractor is
bound to fail because it assumes that price is the best criteria for selection. But you are
not exactly purchasing the same thing like a manufactured commodity; say a new car
where all new cars of the same model and make are equal. The cars were made on the
same assembly line at the same factory by the same workers. All contractors are not the
same and have varying degrees of skill and competence. Their material selection can also
vary greatly. Your home is either the first or second largest investment you own, why
would you choose to repair or improve it solely based upon the lowest price?
The best course of action is to choose a contractor that can help to maximize the value of
your home by providing the highest quality of materials and workmanship. Start by
asking for references, past customers can quickly provide their experience. Integrity,
honesty and quality are not measured by the lowest cost. Cheap materials and shoddy
workmanship on the other hand are never going to improve the condition or value of your
home. Choose your contractor wisely. Remember another important old adage “You get
what you pay for”.
Start by interviewing several contractors to find someone you can trust and will feel
comfortable with them working in your home. What good is a bid from a contractor you
would never feel comfortable working on your home? Identify what is important to you.
Ask for a ballpark price on the work proposed. What have other similar jobs done by the
contractor cost? Have in mind and share your budget. The cost of construction has
increased and it might be that no contractor can complete the job for your budget. Better
to find that out now then after everything is torn up.
Sometimes the difference in prices of different contractors is related to the contractors’
overhead costs and not necessarily lower quality or cheaper materials. Does the
contractor have a physical office, showroom, fleet of matching trucks, receptionist and
separate sales staff? Those things cost money and don’t necessarily improve the quality
of the job. Ask questions, questions are free. How many jobs does the contractor run at
one time?
For a smaller contractor, does the contractor keep his tools thrown in the back of his truck
unprotected from the elements? Or does he have a fully organized tool trailer? Does the
contractor have before and after photos of projects he has completed? Is the contractor
constantly learning about the new materials and techniques in the building trades? How
long has the contractor been in business? Check the Oregon CCB website for any
complaints and to make sure the license and insurance is current. (link below) Are you
looking for a contractor with a passion for your project or just anybody that can pound a
few nails will do? Are you happy with medoricity or are you looking for excellence?
Pizza
I like this analogy about pizza to provide an example about price as it relates to quality.
How much does a pizza cost? You can buy a pizza for about $5 to $10 from one national
chain, another well-known national chain charges $15 to $25. And you can go to a local
pizza restaurant and pay $45 for a pizza. So why the huge variance in the price of a
pizza? You mean to tell me that all pizzas are not the same? I mean its dough, tomatoes
sauce, meat and vegies, pretty basic. Closer examination will reveal that the $5 pizza is
assembled by high school kids on a production line with ingredients trucked in and full of
preservatives to maintain shelf life. The $25 pizza is about the same but maybe they use
higher quality ingredients and workers have more experience. The corporation’s goal is
to maintain some level of consistency even if its poor quality. The $45 pizza is made by
experienced professionals, most likely with fresh dough and local fresh ingredients.
Intuitively we know the differences but we end up buying the $5 pizza and complain
about the taste and quality and stomach ache it gives us. Please don’t treat a contractor
like a $5 pizza, unless of course the goal is to complain about the delivered outcome.
Project Costs
If you would like to see the cost of remodeling projects by region, The Journal of Light
Construction publishes a report every year with prices of projects along with the expected
return on the investment.
The report can be viewed at www.costvsvalue.com
Check on Contractor
Use the following link to check on a contractor’s license with the State of Oregon: https://search.ccb.state.or.us/search/