ᐅ Comparing quotes from construction companies

Created on: 13 Jun 2019 19:18
M
metalex
Hello everyone,

After purchasing a plot of land, we are currently gathering quotes from both conventional masonry house builders and prefab home suppliers. From the first offers we received, it became clear that they are very difficult to compare:

1. We don’t know what to pay attention to in the quotes (what is essential, what can be omitted, what must definitely be considered).
2. The offers are incomplete or partly inaccurate, meaning they differ from what was agreed. One example of incompleteness was an offer where the basement was shown as resting directly on the soil because excavation work, frost protection, and gravel were missing. We didn’t notice this at first in the lengthy proposal until another provider reviewed it and pointed this out to us.
3. So far, no provider has factored in that the plot needs to be “filled” because it lies below street level.
4. We decided to build without a basement, as the zoning plan requires a waterproof basement. However, the conducted geotechnical soil report warns that costly additional measures may be necessary (e.g., foundations on ductile cast pipe driven piles or ground improvements) if building only with a slab-on-grade foundation. There are very settlement-prone peat soils, and after periods of heavy rain, rising subsurface and groundwater can increase up to the surface level.

Of course, we want to avoid unforeseen costs as much as possible and, on the other hand, minimize any regret later because we forgot something important about the house. I’m sure we are not the only ones dealing with such or similar questions. What experiences have you had, and what things should we definitely pay attention to?

Best regards, metalex
11ant14 Jun 2019 02:28
metalex schrieb:

3. So far, no builder has factored in that the plot needs to be raised, as it lies below the level of the street.
4. We have decided to build without a basement,
How deep is the plot located in relation to the street, and did you take that into account in the cost calculation when deciding against the basement?
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
K
Kekse
14 Jun 2019 12:38
In my experience, reputable general contractors (GCs) are generally willing to invest some effort into providing a quote – but understandably not during the initial “let’s just get a feel for the market” phase. At that stage, you need to signal that a contract is likely, meaning you are either already negotiating exclusively or only have one or two other candidates left in the running.

You will probably have to work your way through the process step by step: standard offers – eliminate unacceptable GCs – refined offers – keep only the absolute favorites in the running – now assign a price to even the most unusual details and minor items – finalize the contract. With as many intermediate rounds as needed. For peace of mind, it’s important to accept that you might not find the best company. There are simply too many out there to have a full overview.
11ant14 Jun 2019 16:36
Kekse schrieb:

In my experience, reputable general contractors are definitely willing to put some effort into providing a quote – but understandably not yet in the "let’s just see how the market looks" phase.
That’s right, on the one hand: calculating "usable" quotes requires intensive effort from qualified personnel, who can’t just be pulled from inexperienced interns, meaning their time comes at a fair cost. It doesn’t necessarily need to be a highly likely sale yet, but at least a fair chance. The problem is, at this early stage the initial requester is not known well enough. Unfortunately, "requesting quotes" has become a widespread hobby for many consumers. This means the provider has to expect that the requester won’t hesitate to ask for quotes from ten or even more suppliers. Logically, this can only result in a “low resolution” price per cubic meter for a house on an almost slab-ready ideal plot of land.

On the other hand: a good provider also delivers "quality" and often does not want customers who are just looking for the lowest price — or even worse, customers who expect to find a premium provider whose price is only marginally higher than discount offers. As long as it’s unclear that the requester isn’t that kind of unusual case, the provider won’t waste further effort trying to "win" that potential customer.

Personally, I’ve always made the best profit on the bad deals I didn’t make – as a home builder, I would see it no differently.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
V
vx220
15 Jun 2019 08:40
Without knowing these costs, it would be financial suicide to sign anything.
My structural contractor visited the construction site before submitting the final offer and adjusted the earthworks accordingly. Everything else came in advance from the architect!
And if the supplier has the soil report, they know quite precisely what to expect. The foundation slab is usually specified by the structural engineer.
M
metalex
15 Jun 2019 16:19
Thank you in advance for your answers. We are not looking for construction companies offering discount prices, but of course, our budget is also limited. I will calculate the cost-effectiveness of including a basement.