# overestimating and underestimating quotes



## rtztgue (Jul 9, 2010)

Getting quotes exactly right is difficult, but we are usually close. Every once in a while we will get one wrong by quite a bit. Low and high. I am curious to know how some of you handle this. The last two that fell into this category was with one quote low, and the other high. We ate the low one and kept the high one. We figure that business tends to balance out this way. 

On the topic of bidding low I have asked other contractors what they do with respect to unforseen circumstances. The general feel I get is that it is an art form and varies from contractor to contractor. This last bid where we were high was a similar situation. We expected X amount of problems (unusual job nobody wanted) and it turned out to be easy once we got into it.... so we left the bid as is and finished the job.

Call is bidding Karma. Sometimes low, sometimes high but it balances out.

Other opinions and strategies?


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## PCI (Jun 8, 2012)

I am very rarely low. I try to imagine every problem that I have run into in the past and add it to my proposal. I hardly ever run into every problem I have budgeted for and therefore I am better off for it. I do have a line for hidden items, but it had better be something unusual and not something that I have missed. I eat the cost of missed items. If it is project that has a lot of customer choices ie kitchens, then I try to do a cost plus proposal to cover myself.


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## thom (Nov 3, 2006)

Part of the job of a GC bidding fixed price jobs is providing insurance, insurance that the work described will be provided for the price quoted. Oftentimes people would ask "what if the job turns out cheaper than you figured?". My answer: "You will never know, nor will you know if the job turns out to be more expensive." 

My quote was to provide specific work for a specific price. After that, my cost is not relevent to my customer.


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## r4r&r (Feb 22, 2012)

thom said:


> oftentimes people would ask "what if the job turns out cheaper than you figured?". My answer: "you will never know, nor will you know if the job turns out to be more expensive."
> 
> my quote was to provide specific work for a specific price. After that, my cost is not relevent to my customer.


amen!!!


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## RhodesHardwood (Jun 28, 2010)

If you are in a line of work that is nearly impossible to give an accurate quote, I feel that the most important thing for you to do is to make sure the client is very informed of this. Taking that few minutes to make this very clear can and will save a lot of problems.


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## allcityexterior (Jan 20, 2012)

When I bid low I honor it. I've run into this with doing a quote and then finding out the homeowner has a coupon from Angies List that I forgot was available. But do the work and make the customer happy. 

__________________________________
Madison Roofing Siding Contractor Madison


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## Tscarborough (Feb 25, 2006)

2-10% used to be the normal spread for competent contractors for bid work, for the last 5 years it has been 10-40%. Someone can't bid for ****.


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