Open Discussion -- Fixed Price Quotes or Itemization

[Anonymous]

Was curious what you guys think? I'm screening contractors for a full kitchen renovation (remove a wall, new cabinets, countertops etc.).

Many contractors give a laundry list of work followed by a lump sum with no breakdowns (not even by categories). I understand that estimates are offered for free and the less detail and work they put into it the more time they save (heck, they don't even know if they will get the job). I have often asked for, and received, breakdowns of the lump sum. Not a crazy itemized list (like price for switches and door pulls) but categorically like Demo, Install Cabinents, Material Costs etc. A friend says it's better to work with a lump sum because it gives Contractors flexibility to move money into different buckets. My response to her is "sure... gives them plenty of flexibility to move money into their "profit" bucket." How can you shop prices if you don't know what different category of work is pricing at? Any thoughts?

[Anonymous]

I would lean towards putting the amount of detail in a fixed-price contract to guarantee that you'll get what you want within your budget.

When I say amount of detail, I mean things like 18 gauge sink, the specific faucet, hardwood cabinets with all-wood frames and boxes, caesarstone brand countertop, etc. that way the contractor doesn't substitute quality. Then, you get more than one quote with those specifications and compare. Get references.

If you want to nickel and dime (which with contractors, they will figure out all sorts of creative ways to make their money), you might as well be your own general contractor and get the sub quotes yourself.

The point being, know exactly what you want ahead of time and that will get you the best deal with contractors.

[Anonymous]

Lump sum do not help at all

[Anonymous]

I want itemized and me picking out the majority of the products.

[Anonymous]

For kitchen/bath renovations, lump sum seems to be more typical. Should include an exhaustive and detailed itemization (i.e. instead of cabinets it should say Thomasville Cherry with feather dust coating or whatever). For larger home renovations, detailed itemization is more common.

A lot of this is difference in methods because for a kitchen job, a contractor will likely use more of his own people than subs, whereas for a whole home, the job might be all subs. So if a contractor estimates plumbing at $1,000 and painting at $1,000, and it costs him $1,200 to plumb but only $800 to paint, so be it.

Most smaller jobs (and kitchen falls into this because of labor, not necessarily money) are lump sum contracts, where I get paid X and don't expect any change orders except for materials. Larger renovations typically involve more non-material change orders (wood to tile, extra electrical, adding a bathroom fixture), and so I write those as detailed bids.

But a good contractor should be able to break down the kitchen job if you want them to, or at least give you ballpark estimates.

Hope this helps.