➢ A Ballpark Estimate is Not a Bid, a Quote, a Proposal
Communicate with your contractor what you expect in a bid. The understanding of terminology may vary between homeowners. A ballpark estimate differs from a bid. Just as a bid differs from a quote and they all differ from a proposal.
Be sure to provide your contractor with every detail, even those you may think are too small. It’s time to connect with your virtue, specifically patience and feel free to go through each line item. Everything matters to your contractor.
An estimate is an overview with an understanding of the work to be performed, the breadth of the project, timelines, completion dates, subject to change with new developments. It helps you define costs and helps with budgeting sans an in-depth presentation of project requisites.
An estimate can get completely blown out of the water if for instance you requested basic pool installation and failed to mention to the contractor that you live on solid granite. Through the contractor’s discovery process they will learn you reside on solid granite. The excavation costs alone will dramatically increase the project cost.
♦ Estimate
The point of the estimate is clear: The contractor will let you know if they are able to meet your needs and wants, while including as much pertinent information as possible without overloading you, so you can feel confident about your working relationship.
♦ Quote
The essence of a quote: The contractor is to receive a clear and detailed understanding of what you expect from them and that includes the timeline for project completion, in exchange for the contractor offering a fixed price and timeline, regardless of market fluctuations. The quote will include the breadth of the project and project exclusions.
♦ Bid
General Contractors submit bids to homeowners for the purpose of specifying a price for specific work to be completed by a specific time. It could be a certain aspect of or the project in its entirety. A general contractor may also factor in bids submitted by subcontractors.
Subcontractors submit bids to general contractors to complete a specific aspect of a project.
♦ Proposal
A proposal takes the bid a step further and will include the styles and specific types of materials, whether it comes to framing, glass, flooring, tiles, roofing, paint, piping, etc. The proposal outlines the value and the profit for the contractor. The methods for achieving the best project outcome are highlighted and within the proposal are the milestones for job and the payments deadlines directly connected to those milestones.
A verified, insured, and bonded local contractor will know the difference and exercise total transparency in providing a well explained and clear estimate, quote, bid, or proposal, ensuring the success of your project.