Do you give contractors the inspection report or make your own scope first?
I realized an inspection report and a contractor scope are not really the same document. The report might mention dozens of issues, recommendations, and “have a specialist evaluate” notes. But if I send that same report to three contractors, I could get three bids covering completely different work.
For investors who run rehabs, what do you actually hand contractors so the bids are apples-to-apples?
Do you build the scope yourself first, walk it with each contractor, or let the contractor decide what belongs in the bid?
Most Popular Reply
Personally, and I am speaking as a contractor, I normally will look for direction first from the client such as a preferred SOW and any inspections that may have been performed during the diligence phase pre closing. Once that is done, I can create the main bid based on the clients direction and create a supplementary bid which would include repairs not mentioned in the client scope or items that based on experience we know a building inspector will call out.
Pricing is obviously a real concern and contractors will all see things a bit different on a jobsite based on their collective experience. If you hand for contractors your desired SOW and explain that anything outside your scope should be on a supplementary bid I think it may help you navigate multiple contractor bids on a more apples to apples basis.