Building a home or renovating one can cost a pretty packet and watching your savings disappear is never a pleasant experience! Here are a few tips to be considered.
Building a home or renovating one can cost a pretty packet and watching your savings disappear is never a pleasant experience! Here are a few tips for bringing the cost of the project down by negotiating with your contractor regarding certain terms and pricing of inputs for your project
Don't decimate your savings to build your home
Comparable Estimates
Most home improvement professionals and civil contractors are willing to negotiate their price when competing for a job and will often drop their price when presented with a competitors bid that is lower. Getting accurate and detailed bids from at least three contractors will enable you to make a comparison across similar materials and labor for a job as well as any other charges like hiring a specialized sub-contractor and help you negotiate a lower cost.
Negotiate Prices Based On The Contractors Experience
If you are comfortable working with a relatively new entrant to the field of construction you may be able to negotiate a lower cost as a new contractor is in the process of building his business and may offer you lower rates to win the work. In such a scenario it is still important to verify the contractors credentials and his ability to perform the work to your standards by making sure that he has a team to execute your project as well as the requisite machinery.
Pay For Materials Directly
Contractors usually deal with one vendor for all their materials and may not shop around for the best deals for you. Choosing to pay for supplies on your own gives you the freedom to negotiate directly with multiple suppliers and bring down costs making a large dent in the overall cost of the project. It is important to get the right quantities from your contractor and make sure that all materials are on hand when work commences and as and when specific inputs are needed to avoid any delays in the completion of work.
Time Your Project
Every region in the country will have a low period or a lull in business for contractors depending on circumstances like weather, for instance rainy season is usually slow for contractors or if there is a financial slow down or a drop in property sales. If you time your project to take advantage of adverse business conditions for contractors you may be able to negotiate a better deal and a price cut.
Make your contractor your ally by creating team spirit
Create Team Spirit
You and your contractor should act as a team when trying to bring costs down, the onus of fostering this relationship falls on you. Respect the contractors opinion and authority about quality and work issues, take their advice seriously while emphasizing your need to cut costs and make them an ally in your pursuit for a lower price. In the process, both you and your contractor will develop a good working understanding without being adversarial.
Alternative Payment Schedules Or Methods
Be flexible when it comes to payments, understand that the contractor may need you to pay for some materials upfront while other payments could be deferred. Offering alternative payment methods or being open to altering the timeline of payments could help your contractor substantially while paying suppliers directly may help the contractor by cutting down on paperwork.
Consider the tips above to help you save costs when building your home. Not all of them may apply to your particular project but a little thought towards the implementation of your project or even using these tips to demonstrate to a contractor that you know the process involved in the construction or remodel of your home will help you negotiate better rates and price cuts.
