The Process of Bidding - why it takes so long.
February 11th, 2008Every home builder figures the cost of a project slightly differently. Some throw numbers at a project using cost-per-square-foot (CPSF). I can’t think of a more inaccurate way to bid a custom homes, actually. They might as well just guess. In fact, in my opinion, if a builder refers to him/herself as a “custom” builder and then proceeds to tell you their CPSF, then I question their “customness,” so to speak. A CPSF bid is really not a bid at all, but an educated guess based upon their sale averages from the past. In other words, if they’ve built the same house over and over again using the same materials, bought at the same price (which never happens), on the same lot using the same utilities during the same time of year with the same weather and soil conditions, then it MIGHT be close to accurate. But then is it customized? A custom home should NEVER be based upon sale averages or old pricing. A custom home figured by CPSF is an oxymoron. The dictionary defines “custom” as “made or built specifically for an individual customer” and to customize is to “modify, build or make according to an individuals specifications or preferences.” So if you have no or very little choice in the products that are bid for your project, I’d argue that you haven’t found a custom builder.
We here at Allegro Custom Homes will ask you a ton of questions during our first few meetings — right down to what kind of cat do you have and does it get along with the dog. In order for me to know what to include in a bid, I need to know as much as I can about the family who will live in the home. Likes, dislikes, opinions, feelings, routines, etc. For example: Do you like to cook? Which one of you cooks? What do you like to cook? Discussing this will give me insight into how to design the kitchen. In those two to three hours of conversation, I have to paint, as accurately as possible, a picture of what your family will look like while experiencing this home.
So why does the bidding take so long?
After we meet and have completed the design process (or picked a houseplan), I will make photocopies of the houseplans and distribute them to my subcontractors. I ALSO provide the subs with a two page outline for HOW they are supoosed to bid it. My lumber salesman often receives four to five pages. It describes all of the details for your project — door style, door wood species, hardware styles and finishes, etc. Creating each of these outlines takes time to create and type. But once submitted to the subs, it saves me (and ultimately the customer) TONS of miscommunication problems and ordering snaffoos. Most subs can get me numbers within a couple days to a week. Spring time is ALWAYS busier for the subs, requiring friendly reminders to return numbers. For several aspects (roofing, sheetrock, sometime paint, etc) I perform the take-off myself. It’s much easier and faster. After I receive all of the numbers I compile them in my estimating program. I basically have to construct the house mentally. I review notes from previous projects, making sure I haven’t missed anything. I do not want any surprises. Once I have completed the estimate in the computer program, I then type out a Scope of Work. This will become our construction BIBLE if the project is approved. It becomes part of the formal contract. It is usually about ten pages long and describes absolutely every detail of the project — what is included, what is not included, what faucets are where, what window brand, exterior clad color, muttin bars or not, etc. I can not express how important this document is to both myself, the customer and the subcontractors. It is just as vital as the blueprint. So I take it’s creation very seriously. Therefore, it takes a day or so to create. From copies and outlines to Scope of Work, the bidding process takes anywhere from two to four weeks, depending upon the complexity of the plan, my schedule and time of year for subcontractors. I understand that this can be excruciatingly long for families who are excited about building their dream home. But I feel this method of bidding is most accurate which means there will be fewer headaches, misunderstandings and possible change orders down the line.
Several builders use a ”base house” or “standard house” method of bidding custom homes. This means they bid the shell as they have always bid it. They do their own take offs for the building materials (lumber, sheeting, shingles, concrete, siding, etc) based on linear footage. This, plus their percentage and permits, is the base price. Anything customized will be adjusted as a change order or added as an additional line item. This is definitely a faster way to bid IF you’re NOT wanting a lot of customization or alternative products. If you’re not interested in having to make a lot of decisions other than some interior colors, this would be a faster way to obtain a bid. And it is fairly accurate for those builders who have been doing this a long time.



Strange photo, huh? You are looking at (besides a box) the approved method of house footings for Holland. Granted, this was an old house. I’m sure we have many old farm houses done in a similar manner. But the crawlspace was hard dirt. And the house was balanced on several stacks of bricks and boards. The access to the crawlspace was smack dab in the middle of the living room floor (since it was an interior unit). I asked what kind of wall insulation they use. The homeowner laughed and said, “The neighbors’ houses on each side of me.”
This was a cool idea that I also saw in Japan (when I was a foreign exchange student). They keep the toilet out of the bathroom. Cool, huh? It is in a separate room with it’s own hand-sized sink. Every house (and some restaurants) that we were in were set up this way. I’m not even sure we can get those little sinks here in the States, let alone get a code official to approve them. But it makes so much sense. I can kind of see our Powder Rooms or Half Baths being a super-sized version, kinda…
Christmas Dinner with twenty guests coming? Shrieks and horror to every cook — there is no OVEN!!! Notice that the refrigerator is IN this picture. I didn’t crop it out. It’s underneath the countertop, next to the sink. I was told that this was considered a very nice kitchen and it has even been REMODELED. I was told that the microwaves (which are kind of small too) are convection, which help. My dear friend told me that when they were house hunting she insisted on two things which were nearly impossible to find: a dishwasher and an oven. Even then, she had to buy a second refrigerator which sits in her pantry.

