In a time when every dollar counts and managing every penny is important, don’t get too caught up in just going after the lowest bid. Knowing that a majority of construction costs come from the labor portion of the project, it makes since that getting the lowest bid is the best way to get the best price. The mistake here is not taking into account the hidden costs of lost time, theft, disruption of productivity, and uncertain quality of the finished product. A low bid may sound good on the surface, but it usually will cost a whole lot more than you figured in these other areas. Make sure your builder knows you are trusting him to get you the lowest cost, and understand that in order to do that a good builder will not always use the ‘lowest bidder’, but he will get you the best ‘value’ from his team of sub-contractors.
If a builder uses a consistent team of subs, then his product will be consistent and it will avoid the hidden costs of just using the lowest bidder. It is important for you to find out how long the relationship between your builder and his subs has lasted. The longer the better of course, but if he has a high turn over rate with his subs, it may be something to think about and find out why that might be the case. The relationship between a builder and his subs is critical to a high quality and consistent product. If you are always using different people you don’t always know what you are going to get. Of course the builder is ultimately responsible for the final quality allowed on a job, but knowing what you are getting from the start is half the battle.
A subcontractor that has a great relationship with his builder will respond more quickly to him, and that means fewer delays in all phases of the project. The risk that the sub takes if he doesn’t respond promptly and with good pricing is a possible end to the relationship, which is detrimental to his own future work. The more work the sub can help the builder get by keeping his prices competitive, the more work the sub will have down the line.
Another way that a consistent team helps out your project is less theft. Most thefts off of job sites are actually sub-related. A good team of subs actually look out for each other and their builder rather than having a “who cares” attitude because they don’t rely on the possible future work. Less theft also means fewer delays and rising costs of insurance. The way the subs look after each other when they work around one another builds trust, which allows more work to be done each day because they will help each other out instead of only looking out for number one.
The builder will also be more aware of what is happening at the job sites even while he is not there because the subs are in more constant communication with a builder they care about. They will let the builder know about potential problems before they occur because they care about the reputation of who they work for. This is the most important part for me, because without my guys caring about the highest quality work, they can cover up most anything and I won’t know about it until it is too late. The people a builder teams up with to construct his projects are the most important relationships he has in order to produce the product he promises. Once you select a builder trust his team to do what they do and you will have a much more successful relationship with your builder and end up with the home you always dreamed of along with some new friends and fun stories.
