Cost Breakdowns

DEAR TIM: I just received bids for a very large and complicated room addition project. Each of the bidders gave me a lump sum price for the job. I would like to know what certain items cost. Is it unreasonable to ask for a breakdown? S. P.

DEAR S. P.: No. I highly recommend that you request a breakdown of each bid. You should tell this to each contractor as he is preparing your bid.

The breakdown should be as detailed as possible. It should list each step of the building process. It should also list separate categories for major material items and fixtures. Examples of these categories would be foundation, carpentry, plumbing, rough lumber, doors, windows, cabinets, plumbing fixtures, etc.

You should provide each contractor with a list of the items you want itemized in your bid. If you do not do this, each contractor will probably present a different format to you. Without a standardized form, it will be very difficult to interpret each bid.

The breakdown should have a separate category showing the contractor's profit and overhead. It is important to know this figure. You must not allow the contractor to receive more profit and overhead at each payment point than is rightfully due to him.

This breakdown will be invaluable to you. You can use it to easily compare the quotes you've received. You will be able to see why the low bidder is low and the high bidder is high.

It will help you in determining if a contractor has made a mistake. Generally, certain categories should be very close in price, especially those where specific materials or items are being used.

This breakdown will also be a useful tool in making payments to your contractor once the project is under way. You will be able to compare his payment requests to the bid breakdown to verify if he is asking for the correct amount of money.