What is the difference between an Estimate and a Proposal?

Estimates vs Proposals and why you need both!

By Greg DeSilva

An estimate is an educated guess of cost, while a proposal is a detailed contract with an exact cost. At first glance you might think “I definitely want a proposal then, what good is an estimate?” An estimate has its time and place and should never be skipped! It should always come first to save you time and aggravation as a home owner as well as for a contractor. When estimates are skipped, which happens often as most contractors offer “free estimates” and don’t realize they’re actually giving out proposals, it wastes everyone’s time if the contractor does not get that particular job. By getting/giving estimates you can see if your budget is in the same ball park of the estimated cost. For example: If a homeowner thinks a master bathroom can be done for $10,000 while most master bathrooms start at $30,000 today in our area, then that conversation should be a short over the phone educational conversation. It should not be a 1/2 hour drive to the home, 45 minutes in the home, 1/2 hour drive back to the office, 45 minutes drawing up a proposal/contract and sending it over just to find out the budget was 1/3 the actual cost. Also as a homeowner, researching contractors, calling a number of contractors, setting up times to be home to meet them, waiting for the appointment, waiting for the “proposal” etc. would be a waste of time and energy. When estimates and proposals are understood and used properly it benefits both parties.

How long will my bathroom remodel take?

A bathroom remodel can take anywhere from 4 to 8 weeks. The size of the remodel will dictate the timeline.

Although the smallest room in the house, the bathroom can be a lengthy renovation due to the different trades involved that all require their own inspections. Electricians, carpenters, plumbers, tile setters, drywallers, painters etc…

Each task and trade can take a few days and then you have to account for inspections from your local inspector (some take longer than others). Also take into account that most contractors do not have in house electricians and plumbers on their payroll so there most likely will be schedule conflicts as well.

The process: Demo, framing, rough plumbing then inspection, rough electrical then inspection, framing inspection, insulation inspection, drywall/plaster, tub/shower/tile, painting, vanity install, mirrors and accessories, final plumbing, final electrical, then 3 final inspections.

Hiring a Bathroom remodeler!

When hiring, focus less on a start date and more on the deadline. This will make the project go much smoother in my experience by adding accountability. Ask about subcontractors and who will be in your home and how long they have been working together. Make sure to express any concerns you may have! For example, if dust is a problem for you and your family or you’re worried about someone letting the dog out by accident or your floors were just re-done and you want to make sure they are protected. These small things often get overlooked but are the most important. Bottom line is to find someone you can trust and get a long with. Any renovation can be a great experience if you choose the right people. Hire the person that’s a better listener than talker. Your wants and needs should be their main concern!

The Rich Peoples Tax

Written by Greg DeSilva

What is the “Rich Peoples Tax” ? Its when you call a contractor for lets say central air in your 1700 square foot house. You have the one unit installed for the price of X. A few years down the road you have done well financially, and now have been able to live in a much bigger home, lets say 6,000 square feet. This home has basically the same central air units as your previous home, but has 3 of them. So you call a contractor to come take a look. They come by and see your new range rover next to your wife’s or husband’s Mercedes in the the driveway, and check out the beautiful $6,000 square foot house you’ve worked so hard for. That same A/C unit now costs 10X, and you have 3 of them. That’s what I mean when I say “Rich People’s Tax”.

I have been judged in my life a time or two. Its not fun when you notice it, and frankly it is not right in my opinion. So, what good is this information? other than telling that things will cost you more now? Well, did you know some contractors are actually trustworthy… Some even put their pricing right on their websites to earn your trust and be transparent. Take the time to look for those that do, I can assure you, they are most likely the best to work with.