“How much will it cost?”
When home construction, renovation, and expansion are the topics, that’s almost always the question at the top of the list, according to Ryan Graham of Graham Builders.
“Many people turn to competitive bidding as a way to compare contractors and find the best value,” observes Graham, vice-president of operations at the award-winning Honolulu design/build firm. “While this approach can be effective in certain situations, it has limitations — especially when it comes to custom residential construction.”
No “apples-to-apples”
One of the biggest misconceptions in residential construction, according to Graham, is the belief that obtaining three or four bids automatically creates an apples-to-apples comparison.
“Realistically, that comparison is only possible if every contractor is pricing the exact same scope of work, using the exact same assumptions and specifications,” he says. Two contractors may submit similar proposals that include completely different and dissimilar materials, installation methods, supervision standards, warranty programs, and/or quality-control processes, adds Graham.
“The lowest bid frequently appears attractive because it creates the impression of savings, but it may not represent the best overall value or guarantee the best outcome,” he says. And if important items were excluded or underestimated, or if the bid was based on unrealistic assumptions, those costs often reappear later — in the form of change orders, upgrades, schedule delays, and additional expenses.
“What initially seemed like the least expensive option can ultimately become one of the costliest,” Graham concludes. “And the challenges become far greater when competitive bidding is applied to custom homes, major renovations, and complex additions.”
Real information, not assumptions
The only contractor in Hawaii to be honored by the Better Business Bureau’s Torch Award for Business Ethics, Graham Builders provides clients with accurate, comprehensive budgets before a single nail is driven.
“With the design/build process, budgets can be developed around real information, rather than assumptions,” says Graham. “Potential issues can be identified before construction begins, material selections can be properly evaluated, and expectations can be aligned among all parties.” This approach may not always produce the lowest number on paper, he adds. “But it often results in greater cost certainty and fewer surprises throughout the life of the project.”
In the end, Graham says, a low bid should not be the goal. “Find the contractor who provides the greatest value, the clearest understanding of the project, and the highest likelihood of delivering a successful result.”
Founded in 1990, Graham Builders remains the only contractor in Hawaii honored by the Better Business Bureau’s Torch Award for Business Ethics. You’re cordially invited to attend Graham Builders’ FREE “Building Your Home for Life” seminar on Saturday, July 11th, from 9-11 a.m. To register, visit grahambuilders.com or call 808/593-2808.