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Bid Jobs Versus Cost Plus Jobs

A bid job consists of the anticipated (worse case scenario) labor and materials to do the job plus the contractor’s profit and overhead added in to the total.

A cost plus job consists of the actual labor and materials plus the contractor’s profit and overhead.

Cost Plus Job

With today’s economy every one is trying to save money and that includes money on home remodeling. Cost plus can be a viable way to achieve this. However, you must trust your contractor implicitly. By doing a job on a bid basis the thing you must consider is that the contractor has to bid worse case scenario for your home remodeling project. The reason for this is obvious since he is running a business and can’t afford to do free work. Many times jobs are over bid due to the fact of unforeseen conditions, which may or may not affect the contractor’s budget. The low bid may have endless change orders that accompany the original contracted bid price and when totaled may raise the bid price as much as 100 percent or more.

Bid Price Job

While a bid price may seem like the safest approach, cost plus could save you thousands of dollars since your contractor will only charge you for the ACTUAL materials and labor being used for your project. The other advantage is if you are not happy with your contractor’s performance you can simply fire him after a week or 2 of production rather than being locked into a contract that must be fulfilled.

It all comes down to the relationship you have with your contractor and the confidence you have in his ability to produce the expected product for the lowest price.

Ninety percent of our jobs at RWT Design and Construction are done on a cost plus basis. Our clients have expressed time and again not only how satisfied they are with our products but how cost effectively we were able to produce them. The way I look at it is it truly is a win win situation. We only charge for the services delivered and are paid for just the services delivered and at the end of the day everyone wins!

At RWT Design & Construction we work to keep our customers satisfied and grateful of our speed and attention to detail and of course more than satisfied with the end results of our work. RWT Design & Construction is your high quality local Burbank contractor and high quality Los Angeles remodeler. We have been proudly serving the greater Los Angeles area for over 20 years. So please take comfort in our longevity and belief in making things that last a lifetime.

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