Contractor Etiquette

L., my husband and I are general contractors (though we do commercial work, not residential). We spend a lot of time on the bidding process, and some projects come through, and others don't.

Let's say you have a budget of $25K, and the estimate is $50K. That estimate is not the end of the world - talk to the contractor and designer and see what you can do to "value engineer" the project! Maybe the designer specified some very expensive materials - it's entirely possible you can get the same look with a less expensive material. Last time we remodeled our kitchen, the architect originally specified nearly $50K in cabinetry alone. We balked at the price, she went back to the drawing board, and came back to us with IKEA cabinets. You wouldn't believe how similar they looked to the more expensive type, and we spent only $5K on the cabinets. That was a $45K savings with no discernible difference in the look of the kitchen!

My point is, talk to the contractor and designer. Tell them you need to bring the cost way down. See what they say.

ALSO - see if the contractor will allow you to pay for materials directly. Typically we will mark up materials 15% because we have to lay out the money up front, and then carry that cost over a period of a month or two (or three) until we are paid back. If our clients pay the materials suppliers up front, that is great for us and saves them a ton of money. Likewise, you can ask that the labor quoted amount is used as a "not to exceed" amount, but that you will pay for site labor on an hourly basis. We ALWAYS quote higher than we think the actual cost will be, because we try to plan for unforeseen events. No client wants to be surprised by the final bill, so we will typically quote a little high to begin with, which leaves us with a nice profit if/when nothing goes wrong on the jobsite. So negotiate a "cost plus" contract instead of a fixed price contract.

Remember, the most expensive words you can EVER say during a remodel are, "While you're at it..." - be VERY disciplined about sticking to the original scope of work. The extras add up FAST. Read the contract carefully and make sure that everything you've talked about with the contractor is listed there. If it's not in the contract, he's not obligated to do it.

Good luck with your remodel!

Yes, that's part of it.

I would just tell them, that you revalued you have to wait financially. BUT, you plan to do the work in 1-2 years, and you are so impressed, and plan to use him for all the work. Also mention, that you plan to tell anyone needing a contractor, how professional and awesome he was. Referrals are worth more, than what you would compensate him.

Understand, this happens all the time. They spend that much time with prospective clients. That's part of their process, and not even prospective client hires. They do not consult, and expect compensation fr the consultation. If they did, you would have received a bill and statement!

What Bug said.

And it is kind of you to feel this way. I work in a sales environment and my close ratio is about 10%. So for every 100 proposals I work on, only about 10 move forward. I have spent weeks on one proposal. Yes, sometimes it really sucks, but its part of the sales business and to be expected. You have to go through the estimating (or for me, proposal) process to get any new customers.

I did my kitchen thru Lowes Home Improvement Center. OMG they were awesome to work with. I had a budget and stayed within it. Cannot say enough good things about them.

BEFORE you even have someone do an "estimate" or Proposal for you, you NEED to, before they even do it, ask them how much the estimate is?
And you get this on paper.
And you ask them prior, what the "estimating" process is.
You said, the "estimate was about double what we were expecting." So, no one ever asked or said, what the estimate would cost, before ALL of this was done???? It should have been known, what, the estimate would cost. Beforehand.
And, many firms, have an "Estimator" that comes out to the job site, to appraise the space and talks to the potential Client, about what they want done etc.

Contractors are not "interior designers." They often have a Designer they work with or will suggest to the "client." Or the Client already has a Designer chosen. Or some companies are, full service firms.

Then, if the Contractor retained a Kitchen Designer to also "help" him, then, he should have told you this and his intention of getting the Kitchen Designer on board. WITH your approvals etc. Since he is charging you.
Any charges/fees to you, should have been told to you, prior. OR as the Client, you ask the Estimator, prior.

It seems you only got this one, estimate? Meaning, you did not have at least 2-3 others, to get Estimates from?

You are obligated to pay for the "estimate." Which is like a Proposal.
But again, there was no contract or payments discussed.
USUALLY, Estimates and Proposals, ARE ON PAPER and the Contractor or whatever Firm you are using, gives this to the Client.
But you did not get, anything... from them.
Do you even have a proposal?

Being none of this is on paper, nor your estimate or proposal, then what do you have???? From the Contractor and Designer?
If nothing was given to you, as the "Client" you should have asked them and told them to put it on paper.
Any responsible and legitimate Firm, has a standard process of producing estimates and client Proposals.
It seems you got none of this.
So how can you then... decide to have the job done by this Contractor and Kitchen Designer? You said "we still wanted to go through with it...."
But how can you go through with it, when NO formal estimate or proposal, or contract, was given to you?

Did the Contractor and Designer, already produce the Specs (specifications) and itemized costs and Blue Prints for your remodel????
And did you then, as a potential Client.... agree to what was Designed and chosen for you???

All of this seems really incomplete. Meaning, you didn't get a Contract from them, you didn't get a formal Estimate from them, you didn't even get a formal Proposal from them... but yet, you want this Contractor/Designer to do your remodel??? And you already tried to qualify for a loan???
Did you even get or see any Blueprints or building plans from them?

Doesn't make any sense.

Unfortunately, that is the name of the game. I would call them and talk to them about what happened. No one expectst that you take a high interest loan for a designer remodel. In the future, I would get a ball park estimate before you commit their time. Maybe they can offer you a payment plan with a certain amount down?