Rule of Thirds... Is Getting Three Bids All It's Cracked Up to Be?

Planning any good construction project, whether it be a new home, a remodel, or an exterior project, takes careful consideration and tons of research. When homeowners are considering what steps to take to find the best person for the job, they are often advised by their friends, family, and coworkers to adhere to the “three bid” rule. This is a long standing but not necessarily true rule of home construction and has been proliferated by vulnerable consumers for decades.

While at a first glance, the three-bid rule may have been designed to protect homeowners who are seeking to undergo a financially and emotionally vulnerable process, in reality it often doesn’t work that way. For the three-bid method to be effective to consumers, these things would have to be true: Each contractor would have to have the exact same skill, background, portfolio, specialty, and personality, and thorough, complete design plans. We all know this is impossible. The mistake many homeowners accepting the three-bid myth make is choosing their contractor only on a cost-basis. If you’re buying groceries or even a vehicle, this may be a good basis to make a purchase on. However, a remodel will be with you and your family for many years, and it’s never worth the savings if the product you have to look at every single day or pay to get fixed is subpar.

Instead of participating in the three-bid myth, Olson & Jones recommends you use different metrics to “rate” your potential contractor. First and foremost, it is absolutely imperative that anybody in the running is licensed and insured to the fullest extent in your area. This helps provide levels of accountability to the professionals and protects you and your home from any unforeseen mishap during the project’s completion. Additionally, you can also inquire to any potential contractor about past client references. This is a great way to get unbiased information from somebody who went through the same process you’re inquiring about. It’s also important that your contractor has photographic proof of the work they’ve done; don’t take anyone’s word for it. If the contractor’s portfolio is appealing to you and includes similar projects to the one you’re seeking, it may be a great fit. The contractor’s experience should also be somewhat congruent with the work you want done. There are many talented roofing contractors, but that doesn’t mean that contractor is the best person for your bathroom remodel.

Now that you have new metrics with which to evaluate whether or not you and your new contractor will be a good fit, it’s possibly most important of all that you feel a sense of positive “chemistry” with both the contractor and the accounting or administrative team you’ll be dealing with as you pay. After you “rate” your potential contractor on the new metrics listed above, if you’re pleased and want to explore moving forward with this builder, now is the time to discuss numbers and pricing. If your contractor has happy references, beautiful work and years of experience, but you’re uncomfortable with the price, inquire about either scaling the project back or doing it in phases, or about choosing different finishes. You may be surprised about the savings value of choosing high-quality stock cabinets instead of custom cabinets or a less expensive countertop material. There are endless possibilities and you’ll be sure to find something you love just as much. It may even make the difference between a “decent” project you’re not fully satisfied with, and something truly magical that you and your family will cherish for decades to come.