In our previous blog, we explained the importance of understanding contractor proposals and the information to look for when reviewing a proposal. Below you will find a sample proposal that outlines what we feel is important to consider when reviewing proposal information. What you see in this sample is how we outline all proposals. It includes information on labor costs, construction material costs, and allowance items.
In this example, we are reviewing a proposal for a kitchen remodel. The client wants a brand new kitchen, including new cabinets, flooring, countertops, appliances, sinks, and fixtures. The client also desires to change the layout of the kitchen, which involves moving plumbing lines and electrical outlets.
Allowance items are options that you choose, and these items directly affect the price of the remodel. For countertops the client can choose between a Cambria, granite, or laminate and the cabinet choices are alder, maple, or cherry. In this proposal it has already been decided that flooring will be hardwood. All these selections affect the price. In all of our proposals we break each allowance item down separately, and we specify what we have priced out in detail.
When we meet with a prospective client we discuss budget with them. Not everyone likes to discuss budget, but we have found that it is very important so that we are on the same page. This conversation will help us present a proposal that fits within the scope of the work being requested and your budget. After measuring the space, we can tailor the costs into the proposal. This helps to ensure no surprises after the remodeling project has begun.
In most cases, the labor is included in the construction costs. If the labor to install something is not included in the construction costs, we will specify this in the allowance section. For example, the cost for Cambria includes the cost for the material and labor to install.
Proposals will be different from client to client. Be cautious of the remodeling company that does not detail out the labor, material, and allowance item costs. The proposal below is just an example of what we believe a good proposal should consist of, allowing you to make an educated decision when choosing a remodeling company.
Complete final inspections for electrical, plumbing, and building
Total estimate for labor, materials, and allowance item costs: $xxx