//How To Get Contractor Quotes

How To Get Contractor Quotes

By |2018-08-17T15:16:49+00:00August 17th, 2018|Categories: Real Estate Investing|Tags: , , , |Comments Off on How To Get Contractor Quotes

Stefan Aarnio: Okay, so Brandon, we’re doing a one day here, and he had a question about contractor quotes, should you always get three? Now, the answer is yes, you always want to get three contractor quotes, because you’re going to have a guy who’s too low, you’re going to have a guy that’s too high and you’re going to have a guy in the middle.

Stefan Aarnio: But here’s the problem with you, Brandon, you said you got a guy at 60, who quoted 60 grand, you got a guy at 90 grand and you got 120?

Brandon: Mm-hmm (affirmative).

Stefan Aarnio: So one thing that you got to do right away with your three contractor quotes, you got to get them all on the same scope of work. So do you have a typed out scope of work for them that they need to quote on?

Brandon: I had a list. I had a written list.

Stefan Aarnio: So what you want to do is tighten up that scope of work so they know exactly what they’re looking for and we got one of those, wow, look at this. Lunch is here. Thank you sir.

Stefan Aarnio: We got one of those scope of works in the system, have you seen the top sheets yet?

Brandon: Yes.

Stefan Aarnio: Okay, so the top sheets.

Brandon: Thank you.

Stefan Aarnio: We’ve got our top sheets with our departments and one of them is scope of work. So you got to have your scope of work tightened up and then you got these three guys, now are these proven contractors or unproven?

Brandon: Two are proven, one is un.

Stefan Aarnio: Okay so two proven, one unproven, and the one unproven is he the highest guy?

Brandon: No, he came in in the middle.

Stefan Aarnio: Oh he came in in the middle.

Brandon: Yeah.

Stefan Aarnio: Okay. So first thing you want to do is tighten up the scope of work. And the second thing you want to do is get everybody to break down labor and materials. So every line item, labor and materials, labor and materials, all the way down. They’re always trying to make a mystery price, that’s what they want to do so they can hide their profit, but you want to break it down labor and materials so you can compare the guys, direct compare. And then what I like to do is give them a budget, say this is the number you got to fit into to. What’s the actual budget?

Brandon: 75 we can make it work.

Stefan Aarnio: 75 is that before contingency? And tax?

Brandon: It’s after. It’s after.

Stefan Aarnio: So then you’ve got to tell them 65.

Brandon: Yeah.

Stefan Aarnio: So it’s got to be 65. And so you had a guy at 60, 90, 120?

Brandon: Yeah.

Stefan Aarnio: So that 60 guy, he’s right on then.

Brandon: Or he’s out to lunch and I’m getting in over my head.

Stefan Aarnio: Yeah. So you got to get these guys dialed in, number one labor and materials split out, and you got to make sure the scope is the right scope, the value is the right value. And then you have to get them to all come in and re-quote or modify their quotes so that they’re all absolutely on the same thing. One thing that happens when you got a bunch of contractors, they’re all giving you different values for things, and I don’t mean value as in cost, some guys forget to paint the outside, some guys forget this and forget that, so their quotes are different. So labor and materials and then get them all the same value and then you can start negotiating and you can see where the guys are overcharging and undercharging you, and then you can make the decision, but you need the three quotes because the highest is usually disqualified and the lowest is usually disqualified, and then the one in the middle is probably what it really is.

Stefan Aarnio: So that’s three contractor quotes, you’ve got to get three contractor quotes, and you want to look at it the way I just told you because when you’re buying, you need to have detailed labor and materials, when you’re selling you want the mystery price.

Stefan Aarnio: I’m Stefan Aarnio, I want you to comment below about what we’re talking about here, contractor quotes, labor and materials, mystery prices, let’s hear it. I’m Stefan Aarnio, respect the grind, like, share, comments, subscribe to my channel. I’ll see you on the next video.