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Before a construction job, contractors provide estimates based on factors such as the type of work, equipment needed, materials required, and man hours. The lowest offer may not always be the best choice, and it’s important to examine the reputation and documentation of each contractor.
Before a construction job begins, whether it’s a small job in a residence or a very large job in a commercial building, he goes out to bid. This means that contractors have the opportunity to review the work and provide an estimate of what they would need to charge to complete the work. This is called a contractor bid. In most cases, people or businesses interested in hiring a contractor for a job will review multiple offers before hiring anyone.
A contractor’s offer is based on many factors. The first and most basic factor is the type of work that is on offer. The repair work of a two-story residence and a small attic is very different from the new construction of an office building with fifteen floors. This basic factor will define many others such as the type of equipment that will be needed to complete the job, how many people will need to be hired to do all the work, and how many man hours the project will require to complete. If the job is unusually complex, a contractor may need to rent or purchase equipment that the company doesn’t already have. All of these factors must be considered when a contractor is developing an offer.
Also, a contractor must consider the materials that will be required from the start of the job to the end. In most cases, it is up to the contractor to purchase these materials. It is important, when requesting an offer from the contractor, to be specific about the materials required as their price must be factored into the offer.
It is important to note that it is not always best to choose the lowest contractor offer. Indeed, sometimes the lowest of offers can be a risky choice. For example, it could be low because the contractor underestimated the number of workers he will need on his construction crew. Also, a slightly more expensive offer might come from a contractor who insists on meticulous workmanship and therefore schedules above-average labor hours.
In some cases, contractors will use materials other than those specified in the offer to reduce costs. This can leave the consumer with a product of lower quality than expected. This doesn’t mean that all contractors are unreliable. However, it is very important, when considering offers, to examine the reputation and documentation of the people behind each contractor offer.
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