General Contractors (Builders) are usually contacted by you, the client, after your architect has completed the design for your custom home. Two or three pre-qualified General Contractors are usually chosen to bid on the project. The low bidder gets the job. This is the “old standard” way of doing business in the construction industry. It has one advantage if done correctly; those bidding must sharpen their pencils to be the low bidder and be awarded the contract. Healthy competition keeps prices lower. However, for competitive bidding to work it requires 2 essential components:
- First, the design team (architect) must be aware of the current cost of construction and finishes. Most people have budgets. It is imperative that the design is within the client’s budget and not larger or more extravagant than they can afford. If this is not done, the client will not be able to afford what the designer created.
- Second, the design team (architect) must list all the specific selections for all the exterior and interior finish items or set specific allowances for these items. In this way all bidders are bidding the same items. If this is not done, the bidders will only be guessing, and to be the low bidder, most will tend to use less expensive finish items. This will create serious problems as the owner begins the finish selections process only to find that every finish selection item they choose costs more than the general contractor’s “guesstimate”, leading to cost overruns, change orders…
Stockell Custom Homes and Construction is a General Contracting Firm. We have been awarded many projects through the competitive bidding process. These projects have all ended with very happy clients in a beautiful new home, due to knowledgeable architects at the design phase, and Stockell Custom Homes building with excellence and integrity.
Our mission is to exceed customer expectations, make the whole process enjoyable, and provide excellence in everything we do. We would love to meet with you and discuss the benefits of General Contracting, and pitfalls to avoid. Please contact us to schedule a free consultation.