How do you get estimates from contractors?

Question

I am reading the BRRRR book, and I was wondering how do you get estimates from contractors for rehab projects?

The book provides a format activity/scope/price. Do you use something similar?

My contractor just gives me an estimate without much detail. Should I ask for more detail: Scope/Activity/Price? I do not want to add any unnecessary work to my contractor, however, I want clear expectations to avoid any confusion.

Any articles/books recommendation would be great. I want to understand how contractors operate to make sure I understand their business need.

Alora Glaze · Answer

Its absolutely acceptable to ask your contractors for further details on their scope of work. We always provide line-item details so there is transparency of where the money is being spent and how - but I understand not all contractors can provide this level of detail. However, if they're the expert and professional - then they should be able to provide material and labor costs accurately with an appropriate timeline without much difficulty. Make sure the contractor you hire has been fully vetted - ask to see their license and their certificate of insurance; I also agree with the above ^ if you have any doubts, get a second scope/opinion.Best of luck to you!

Andy Eakes · Answer

@Yusuf Qureshi Yeah it would be smart to ask for a break down of the costs. I wouldn't be super pointed about it, but ask for a break down of costs. Another technique that I try to do is I will get multiple estimates from non-affiliated contractors just to make sure I am getting the best deal. At first you will want to do this, then when you find workers you like, you can develop a relationship with and trust them and rely more solely on them. But if you are just starting out and unsure as to whether or not you are getting ripped off, then I would get second estimates.

Another thing to remember is that when you rely on you contractor to hire professionals for you, you will more than likely have to pay sub-contracting fees. So it will be a little more expensive.