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*Question & Answer Accepting Low Bids*

Dear Bob

I have had 5 contractors give me an estimate for my new kitchen. The prices have been from $15,000 to $32,000. How can the prices differ so much?

Dear FT

If you have bids within at most 15 percent of each other, there's probably no reason not to go with the lower bid. On the other hand, if one bid is 25 percent lower than the rest, there is a problem. It should set off alarms. Generally, the low bid will come from someone who hasn't thought it through the job properly, or doesn't have enough experience to understand what the job entails, or might be looking to get the job and make up some money with add-ons once you get started, or is looking to cut corners on materials and insurance and things you don't want him to cut corners on. I won't tell you never to accept the lowest bid. You might get lucky and find a contractor who is really good but desperately needs a job to fill in a space on his calendar and keep his guys working. Ask for at least three references. Check to see there are no complaints against him and that he is fully licensed and insured.

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