Deposit for working up quote?

[Innovate1]

Got some clarification of some details...

The refundable part: It is 100% refundable on day 1. After that they deduct their time and cost from how much is refundable. So after they complete the bid there is close to nothing left to refund.

They said the $5000 was the rate because we already had plans. It would be 50 - 100% more without plans.

I understand them not wanting to put in large amounts of time but I think we should get more than a rough guess on cost per square foot before we put this kind of money down. We are looking at other contractors.

The difference between this and buying a car or appliance is that the design work is already complete for those so not really a valid comparison IMHO.

 

[3onthetree]

After that they deduct their time and cost from how much is refundable. So after they complete the bid there is close to nothing left to refund.

They said the $5000 was the rate because we already had plans.

I understand them not wanting to put in large amounts of time but I think we should get more than a rough guess on cost per square foot before we put this kind of money down. We are looking at other contractors.

1. There is no cost per SF that you can compare in residential construction.
2. He is unable to do the detailed breakdown so he has to ship it out and pay someone else.
3. He gave you a ballpark number which was elevated, as anyone does with ballpark numbers to cover their ****. The detailed bid would need to be fiddled with to match his ballpark.
4. He is busy, doubts you will go with him, and wants to make money off of you.

 

[CTyankee]

What format are the plans in? If they can easily be downloaded into a professional estimating software program, the guys stealing your money. JMO.

 

[Notgrownup]

I would be talking to someone else, a Good GC should be able to sit down with you and come really close minus whatever you tell him what to buy yourself like fixtures and appliances, landscaping...

 

[Radix2]

You already have plans.

How it works around here is - the builder will - send a copy to his favorite lumberyard (or framing cont.) - they will do a take off for building material...send a copy to his favorite electrician, plumber, HVAC, excavator and mason... who will quote their stuff.

The builder will combine the quotes and add his fees and contingencies.

the builder will meet with you and try to get the job.

No quote fee.. and I don't see where he has put a huge effort in to justify one either

does this builder to all his own labor?

 

[DFB]

Got some clarification of some details...

The refundable part: It is 100% refundable on day 1. After that they deduct their time and cost from how much is refundable. So after they complete the bid there is close to nothing left to refund.

They said the $5000 was the rate because we already had plans. It would be 50 - 100% more without plans.

I understand them not wanting to put in large amounts of time but I think we should get more than a rough guess on cost per square foot before we put this kind of money down. We are looking at other contractors.

The difference between this and buying a car or appliance is that the design work is already complete for those so not really a valid comparison IMHO.

Wow I never heard such a deal

IMO here the guy doesn't really want your job

And is highballing the numbers will get what he can and figures you to get lost after that.

 

[audioworks04]

It is become much more common as a lot of DIY people get a professional opinion and then run with their idea thinking they can be their own GC. Even in smaller markets a consulting fee is becoming common practice.


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[Big Bad Dad]

Where I work, we put a lot of work out for bids and/or quotes. We have specifications written up, and engineered drawings by architects if needed. Contractors bid on jobs as part of trying to get the work and $$. Never, heard of a Contractor wanting a $5000 "deposit" to work up a bid. If he is not doing the engineering and design work, he is just trying to screw you.. IMHO. I would NEVER do this!
On a residential job, a Contractor can bid on work, but if design is needed, that is something the homeowner should have done in advance, unless willing go pay the Contractor. (Who would need the proper engineer or architect license...)

 

[Miss the Pontiacs]

I’ve billed for a quote once. The first quote I gave was for a full bore job. They wanted an absolute high end cost estimate which could be done at my desk with maps etc supplied.
That was 4-5 years ago. Then again the same thing a couple of years ago. No charge as I didn’t go to the site 2.5 hours away. The approval has to go through 3 layers of approval.

Last April I again was contacted to do a much scaled down version of their original request. I wasn’t given the pie in the sky version. So did the drive spent the time and mentioned there was a charge if the work didn’t come to fruition. 3 months passed I sent them a bill for 2% of the job that was our arrangement. Received the check and will deduct the 2% if the work comes through. Nearly 10 months have passed and to my knowledge the work has still to be completed.
I really don’t care if I get the job it was a favour to my client who subcontracts work from the operation that needs the work done. But of course I would do the work as it helps my client do their job. My client was the one who paid the quote cost.
Now it’s a waiting game and would likely honour the quote given just to get the job done.

 

[ehsan]

I was replacing an electrical panel and one of the electricians said he would come out but charged his hourly rate for the time he spent at my house. I thought this was fair because he was taking time away from another job he could be doing and getting paid on. He also had perfect 5 star ratings on yelp and was clearly in demand

I ended up going with someone else, but the money I spent for his visit was worth it because he clearly knew his stuff and I learned a lot from him about what was and was not code legal.

I think it's fine for a contractor to charge you for the hours spent on a detailed quote, but $5K is ridiculous. Like all things, a good quote takes time and has value and it is fair to charge for it. This also works where I am in the Bay Area because there are way more customers than contractors and they are basically all fighting off work.

 

[Hilltopmasonry]

I was replacing an electrical panel and one of the electricians said he would come out but charged his hourly rate for the time he spent at my house. I thought this was fair because he was taking time away from another job he could be doing and getting paid on. He also had perfect 5 star ratings on yelp and was clearly in demand



I ended up going with someone else, but the money I spent for his visit was worth it because he clearly knew his stuff and I learned a lot from him about what was and was not code legal.

A lot of smart contractors are now starting to learn how to prequalify customers on the phone learning how to sell and actually charging for estimates as part of their business plan

coming out to visit a customer literally takes half of a days time, because let’s just assume an hour in travel there and back let’s just call an hour with the customer plus you have to type up a proposal

Contractors are starting to learn to up their sales game and save them selves a Ton of time chasing their tails running from estimate to estimate




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[blkhonda1991]

Got some clarification of some details...

The refundable part: It is 100% refundable on day 1. After that they deduct their time and cost from how much is refundable. So after they complete the bid there is close to nothing left to refund.

They said the $5000 was the rate because we already had plans. It would be 50 - 100% more without plans.

I understand them not wanting to put in large amounts of time but I think we should get more than a rough guess on cost per square foot before we put this kind of money down. We are looking at other contractors.

as someone else stated if he gc is actually getting bids its the subcontractors doing much of the actual estimates so the GC is only really reviewing the numbers and adding his mark up in the end...i cant see how any GC is putting 5k worth of time into an estimate, its a weeks worth of full time work at that fee. any good GC should be able to give you a rough per sf cost fairly easily to get an idea of budget.

The difference between this and buying a car or appliance is that the design work is already complete for those so not really a valid comparison IMHO.

5k rate with plans!? thats insane....i paid an estimator 4k for an estimate on a 8,000sf commercial project.

put your plans in a bunch of GC hands and have them bid it...dont lock yourself into this guy, hes going to gouge you every step of the way.

 

[pcmeiners]

Again, if you do not have an Architect make plans, spec sheets, and a material lists your only asking for headaches. Without the above you could have 10 contractor bid the job, there will be 10 different builds from this. Even if you have "plans", if they are not Architectural plans it will result in 10 different builds, all with 10 different sets of major headaches.
Level the playing field for the contractors, if they have proper plans/lists they are bidding on the EXACT same build not on your expectations and their interpretation of what you say.