Here are some basic things you must have to get your home remodeling or new home building project ready for competitive bidding so you can be sure you’re getting the best price possible.

1) Complete, detailed plans

Your local building department doesn’t require much to issue a building permit. All they want to know is whether the plans meet the building code, and the code is mostly about safety – not about what kind of countertops you want.

A set of “permit-ready” plans is missing a lot of what you need to get accurate and complete bids. You need far more information – especially drawings of architectural details inside and outside of the house.

2) Specifications

“Specs” aren’t part of the drawings; drawings tell the contractor where things go, the specs tell them what those things are. The drawings will show a toilet in each bathroom, but the specs tell the contractor what kind of toilets you want. If you want a different toilet in the master bath than the kid’s bath, the specs spell that out.

Without specs, you’re leaving the decisions about fixtures and finishes up to the bidders – which causes confusion and misunderstanding and makes it much tougher to compare bids.

3) Bid Invitation Letter

When are the bids due? What format should the bids be submitted in? Who do bidders call with questions? Where should the bids be turned in? How many bidders are expected?

These questions – and more – should be addressed in a bid invitation letter sent out to each bidder.

4) General Conditions

There are dozens of little issues to deal with on a construction project that have nothing to do with construction, but everything to do with the price.

Insurance is one, as are working hours; parking for subcontractors; change orders; quality assurance; dispute resolution; cleaning, and on and on. A “general conditions” document spells all of this out.

5) Quality Bidders

An experienced, qualified contractor with a track record of success competing against two guys with a pickup truck and a magnetic door sign isn’t going to get you an apples-to-apples comparison.

6) References

You might be surprised by how often homeowners don’t check references. They can give you confidence in a contractor, but they can raise important red flags, too.

If you hired an architect to design your project, ask him if he offers this level of service. Many do, and would be more than happy to help manage the specification and bidding process for you.

The important thing to remember…three quotes based on accurate and detailed specs would result in a very good idea of what a fair price for a job should be. You can’t get that kind of assurance with just one price!

Competitive bidding works the same way in new home and remodeling construction. Qualified contractors submitting bids on a well-defined project know they’ve got to give their best price if they want to get the job.