Have you ever wondered why cost estimates from different builders or remodeling contractors can vary significantly for what appears to be the same project? Even when homeowners provide drawings and detailed specifications for their project with clear goals, the proposed cost can differ substantially.
This may leave you with unanswered questions. Does the higher estimate mean the contractor is overcharging? Is the lower estimate a better deal for the same work? Or are the contractors in fact pricing different scopes of work?
Every builder and remodeler strives to give the customer a fair estimate, but the final price depends on more than what the project looks like on paper. The materials used, construction methods, skill levels, project management, and details included in the proposal all affect the total cost as well as the quality of the finished product.
Understanding what goes into a building or remodeling estimate can help you compare proposals more accurately. It will also help you to ask the right questions and make a more informed decision about your investment.
Key Factors That Make Remodeling Costs Vary
Many homeowners embarking on a remodel find that they get very different estimates for what appears to be the same scope of work. Even though they provided specifications of the work the estimates vary enough to make them wonder what they are missing. The answer in most cases is simple. It is not the same project, because the contractors quoting them are not providing the same materials, level of expertise, or project management. There are several key factors that influence the final cost and quality of a remodeling project.
Most contractors try to carefully manage costs to give you the best value for your investment; however, you should also remember you get what you pay for when planning a remodel. Cutting corners when choosing materials can result in a finished space that needs to be repaired or replaced sooner than expected. Choosing less skilled contractors will affect the quality of your finished space. Working with a contractor that doesn’t offer project management impacts communication and successful completion of the project.
In this blog, we will discuss some of the key factors that affect the final cost of your building or remodeling projects, including:
- Job Specifications,
- Skilled Craftsmanship,
- Materials and Quality,
- Level of Service Provided,
- Clear Communication,
- Finished Result, and
- What Happens After the Project is Complete.
Let’s explore each of these in more detail to better understand why the cost estimates you received may vary so widely and what it says about the scope of work quoted to you.
The Job Specifications are Different!
When considering residential building and remodeling jobs and why cost estimates often vary so widely, the simplest answer is that the specifications are usually different. This may be based on several factors, chief among them the way a conversation between the builder, suppliers, and the customer has been interpreted.
As a remodeling client, you may meet several potential builders, and the builder will price what they feel is the best solution in their opinion and based on their experience. Depending on how that discussion evolves, you may describe the project slightly differently to each builder. They may in turn interpret your requirements differently depending on their experience, preferences, and understanding of what you want. The result of this is different costs for what you thought was the same exact scope of work.
We have over 30 years of experience serving remodeling clients throughout the Mid-Michigan area and have seen this happen often. Here’s a case study from our own local experience:
In one kitchen remodel quoted by our team, the wife included all inserts and helpful storage options she wanted in the initial scope. Her husband took our quote to the lumber yard and had them provide a quote. Guess what? The lumber yard was cheaper, and the homeowners decided to go with the cheaper option. When the kitchen was installed none of the inserts or storage options were included. The husband got a cheaper kitchen and an unhappy wife. Yes, the final price was cheaper, but the specifications were very different and did not meet the family’s needs.
Skilled Craftsmanship Comes at a Cost
Not all tradespeople are the same! Skill levels, experience, attention to detail, and understanding of quality varies widely from one to the next. Look carefully at the experience of your chosen contractor or remodeling firm. Is the person doing this job for the first time or have they have done this installation many times? Have they proven their expertise and worked on projects with your size and scope before?
When you work with an experienced remodeling team, you get the value of their cumulative knowledge from every job they have completed before your project. Experienced and skilled contractors can often anticipate issues before they arise, deal with any unexpected problems with confidence, and give you the finished quality you expect. You will get a more precise product that enhances your home and lasts.
Like any other profession, the more highly skilled person should earn more for their level of expertise. Compensation packages also affect the overall costs. Does the tradesperson have benefits other industries enjoy, like a retirement package, health insurance, and paid time off? Each of these factors is part of the underlying cost of a job when working with skilled, experienced professionals.
Materials and Quality Make a Difference
Just like when you are buying a car, quality varies widely and it matters when choosing products and materials for a home remodel. It is hard to determine quality levels when looking at a picture or reading the specifications listed for a project.
For example, some faucets are made of plastic while others are made of brass. They may look similar on the surface, but this difference determines how well your faucet functions and its longevity, since brass lasts longer and is more durable. Similarly, one all-plywood cabinet may vary greatly in the grade of plywood from another all-plywood cabinet. The cabinets are the same size and color, but the durability and price can be very different.
Here is a local case study to illustrate this:
A local builder described a project where he chose the lowest priced cabinets for a job. He went on to describe how it took 4 replacements of a particular cabinet and 4 months to get an acceptable product to use as a replacement. He confessed that he really did not save money when he considered his time to get the finished project right.
The Level of Service Provided Matters
The service provided by different remodeling companies varies. Look at their experience, as well as the size and make up of their team. Is this a builder working on their own? Or do they have a team behind them, helping them with preliminary project planning, project management, answering and responding to calls, and managing timely delivery of products and materials.
A builder performing all the work himself may do a good job, but he is working on job sites all day and cannot return your calls until the end of the day (if at all). Having the benefit of an office staff means you will always have someone to talk to, whether that is to get an update on your project status or to raise a question or issue.
Is the project overseen by the tradesperson or a project manager? A project manager may add to the project costs, but they are invaluable. They provide better communication, a second pair of eyes on the job to ensure quality, and a single point of contact to keep the project on track.
Preplanning is critical to any project’s success. As the saying goes, measure twice and cut once! A team that values preplanning means your project is measured correctly, problems are often anticipated and avoided, and the project flows smoothly. Great service from a team of professionals creates better service, stress-free remodeling experience, and a higher quality than a single person doing all the work.
Clear Communication Helps Keep Projects on Track
Communication is essential to any project’s success and is especially important in a home remodel. Communication levels can vary widely from one contractor to another. This may depend on their approach to project management, their support staff, and how well developed their remodeling process is.
Clear and consistent communication is essential between the contractor, the designer, and the homeowner to ensure smooth project implementation. Misunderstandings and assumptions lead to a final price and project outcome that do not match expectations. Companies with dedicated project managers and office staff perform best with communication as they have the people in place to keep the communication.
Keeping you informed of your job’s progress has endless benefits. It minimizes stress on your family as you know exactly what to expect at each stage of the remodel. It also reduces miscommunication that could lead to a finished product you did not expect or hidden costs that come as a nasty surprise at the end of the project.
The Finished Result Reflects the Process
Let’s face it: building, remodeling, and construction is difficult. If it wasn’t, you would do it yourself! You want to ensure the smooth execution of your project, where all issues are resolved and you are left feeling confident that the investment was worthwhile. To achieve the best results for your home, you must understand it may not come with the smallest price tag or the cheapest products.
The best approach is to work with a trusted remodeling company that will be honest with you and present a clear picture of exactly what you are paying for. You may still decide to cut a corner, but at least you are making an informed decision. Or you may realize that investing a bit more will give you a better long-term return on your remodeling investment, with materials and construction quality that will last.
What Happens After the Project is Complete Impacts Long-Term Value
A professional remodeling company works with you to make sure not only is everything installed on time and according to budget, but that it works the way you expect it to. They work with you on any final touch ups required as well as a punch list to make sure every detail of your project is completed to a high standard. They also help you understand any product warranties or ongoing service requirements to properly maintain your new space long term. This follow up is invaluable in ensuring you can enjoy your newly remodeled home for years to come.
Making an Informed Decision About Your Remodeling or Building Project
When comparing estimates for a building or remodeling project, it is important to look beyond the estimates you are quoted. Differences in project specifications, skill levels, product quality, service, communication, and long term value all affect the price you pay and the results you receive. Even when two proposals appear to cover the same work, the details that go into those proposals often reveal significant differences in what each contractor provides.
Rather than simply finding the lowest price, it helps to clearly understand what you are getting for your investment. Take time to review each estimate, ask questions about what is included (and what is not!), and consider each contractor’s experience, approach to project management, and commitment to quality. Clearly understanding these factors will help you better evaluate the quotes you receive and make a smart choice when selecting a contractor who aligns with your expectations, budget, and remodeling goals.
Whether you are planning a kitchen remodel, bathroom renovation, home addition, or other home refresh, our experienced and professional team can help you understand your options and implement your project with confidence. Contact Granite Construction to discuss your remodeling goals and to get started!