We refer to the use of quotes and bid when we are discussing construction pricing, but are they really being used correctly? These are actually the most commonly missed used words in the construction industry; estimate, bid, proposal, and quote.

If you’re planning on doing work to your home, it is important that you start speaking the construction lingo. The planning stages are just as stressful as the remodeling process. It can feel overwhelming and intimidating when you begin sitting down with your chosen contractor to go over price, materials needed, and length of project. Below is a brief explanation of some of the things that people find most confusing.

In our industry, an estimate, bid, quote, and proposal take on different meanings depending on who is using the terms. Some construction professionals use the words “estimate” and “quote” interchangeably, while a bid or proposal may turn into a contract if the customer signs it.

Estimate Quote
Pros Pros
  • Fast idea of what it will cost.
  • Give Homeowner opportunity to meet various contractors.
  • Educates homeowner of what possible solution will look like.
  • Based on actual labor and material costs.
  • Forces homeowner to pick all materials to be used.
  • Forces contractor to assess totality of the job.
  • Clear understanding of what you get for your money.
  • Good way to assess competence level of contractor.
Cons Cons
  • Fault assessment of cost.
  • Can leave big holes in totality of work needed.
  • Not to be substituted for contractor interview process.
  • Takes 20-40 hours to properly complete.
  • Cost homeowner money.
  • Requires a contractor with greater business acumen (harder to find).

 

 

To learn more about Bay Cities Construction – Find out what the exact definitions that were excluded from this article here – http://www.baycitiesconstruction.com/blog/whats-the-difference-between-a-construction-quote-and-estimate

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Grant Cardone
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Star of Discovery Channel’s “Undercover Billionaire,” Grant Cardone owns and operates seven privately held companies and a private equity real estate firm, Cardone Capital, with a multifamily portfolio of assets under management valued at over $4 billion. He is the Top Crowdfunder in the world, raising over $900 million in equity via social media. Known internationally as the leading expert on sales, marketing, and scaling businesses, Cardone is a New York Times bestselling author of 11 business books, including “The 10X Rule,” which led to Cardone establishing the 10X Global Movement and the 10X Growth Conference, now the largest business and entrepreneur conference in the world. The online business and sales educational platform he created, Cardone University, serves over 411,000 individuals and Forbes 100 corporate clients throughout the world. Voted the top Marketing Influencer to watch by Forbes, Cardone uses his massive 15 million plus following to give back via his Grant Cardone Foundation, a non-profit organization dedicated to mentoring underserved, at-risk adolescents in financial literacy, especially those without father figures.
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