Why the Cheapest Bid is Not Always the Best Bid

bidding process

When you’re building a home, there are several factors to consider when gathering bids on your new construction. In fact, as a client there are many factors that you should know and take ownership of when entering the bidding process. Below we’ll describe specific considerations for bidding and then spell out what you can expect from the Patterson Homes process. 

A few things to consider when evaluating bids on your new home:

  • Be sure to compare apples to apples. Some builder will come back with a really low price, but also low information. Their bid may not include details or line items. This should concern you. You need to know what is included in your bid and how much each item will cost in comparison to other bidders!
  • Is there a Change Order Policy in place? These policies protect you from surprise bills. If something comes up in the process or you want to change your mind on a selection, make sure that you can do so knowing what the cost will be and understanding what is included or not. You need to know if you will be informed before the bill comes. 
  • Has your architect specified materials? Make sure that you know the building materials you’re being quoted for. You want to ensure that the builder is giving you a bid for the quality of home you desire. When you bid out with more than one construction company, you need to make sure that your architect has specified the exact type of material or be able to see by line item what the quality of each material is.
  • If materials are not specified, ask about the materials allowance. Builders often get the bid lower by putting a low allowance in the quote for things like flooring, fixtures, and tile. This can lead to excessive change orders and heightened costs for the client. Make sure that the allowance is accounting for the materials you envisioned for the quality of home you want.  
  • Does the builder have a track record of quality performance? If a bid is abnormally low, the builder may not have the quality of materials or processes in place to provide you with an enjoyable home building process or quality finished product.
  • Are competent and reliable subs being hired? You may get a low bid with your home completion being delayed if a cheap sub is being used. Seek out the contractor’s history of delivering projects on time. There are legitimate delays of weather that a good contractor should build into your schedule. A reasonable variance of a few days is normal, but for the most part you should be able to expect your home to be completed during the agreed upon time frame. 
  • Your Home Warranty is important. Make sure that the builder you choose has been in business for long time and will be in the future. You need to know that the relationship with your builder won’t end with the punch list. A builder should be prepared to continue to do work on your home through the next couple of years as covered in warranty. 

What Can You Expect from Patterson Homes?

At Patterson Homes, we’ve been working for years to develop a streamlined and effective home building process that is simple, smooth and enjoyable for the client. Our experience has helped us refine our process so that when we give a bid, we stand behind it with quality assurance. 

Our bids will include a detailed breakdown of line items for services and materials. We discuss cost from the beginning, and once we agree to a budget we stick to it. If a change in selections or unanticipated expense arises, there is not a decision made without your consultation.

We have longstanding relationships and working history with our subs, and schedule our projects based on a reasonable timeline for both parties. Because we know the reliability of our team, we can determine deadlines with timeliness. 

Our client portal prevents stress, relieves unknowns, and keeps the process smooth. We use this app for maximum transparency so that our clients always know the details of their home building process. Learn more about the client portal here. 

We are meticulous about quality- in materials and in work. We will do what it takes to create a high-quality home that we are proud of for your family. Patterson Homes stands behind our work and if something unforeseen goes wrong in the building process, then we respond quickly to correct the problem with excellence while still honoring the bid.

We are honored to say that our clients are consistently providing good feedback on our ability to stand behind our bid and provide a high-quality home within an agreed upon timeline. As your builder, we are happy to offer references for you as part of the bidding process. 

If you’re interested in the home building process, Patterson Homes would love the opportunity to walk you through our smooth, fun and memorable process. Visit https://patterson-homes.com/ to get started.