EP 71 | Estimate vs Quote vs Bid: What Contractors and Homeowners Must Know! [with Legal Eagle Dan Bawden]

In this episode:

In this episode of the Your Project Shepherd podcast, host Curtis Lawson sits down with Dan Bawden of Legal Eagle Contractors to discuss the often-confusing terminology surrounding construction contracts. This episode breaks down the differences between estimates, quotes, and bids, highlighting their legal implications and offering valuable advice for both homeowners and contractors to ensure clear communication and avoid potential disputes.

TOPICS COVERED:

• • Defining the Terms:
    • Estimate: A rough, informal assessment of project costs, primarily used for budgeting and feasibility discussions.
    • Quote: A more specific and binding price offer, often including detailed specifications and a narrower cost range.
    • Bid/Proposal: The most comprehensive and formal contract document, typically including architectural plans, detailed specifications, payment schedules, and other essential project information.
  • The Importance of Clarity and Specificity: Emphasize the need for clear and detailed contracts to avoid misunderstandings and disputes, especially when it comes to defining project scope, allowances, and payment terms.
  • Protecting Your Interests: Encourage homeowners and contractors to carefully review and understand their contracts, seeking legal counsel when necessary, to ensure their rights and responsibilities are clearly defined.
  • The Value of Transparency: Highlight the importance of transparency and open communication between homeowners and contractors throughout the project lifecycle, addressing potential issues proactively and fostering a collaborative relationship.
  • The Dangers of Underbidding and Overpromising: Discuss the risks associated with underbidding projects or overpromising on timelines and capabilities, which can lead to financial strain, strained relationships, and potential legal disputes.
  • The Importance of Documentation: Emphasize the critical role of documentation in managing change orders, tracking costs, and providing evidence of communication and agreements to avoid misunderstandings and potential litigation.
  • The Role of Third-Party Verification: Explore the benefits of utilizing third-party inspections and verification to ensure compliance with plans, specifications, and building codes, providing an added layer of protection for both homeowners and contractors.
  • Choosing the Right Contractor: Offer advice for homeowners on selecting a qualified and trustworthy contractor, including reviewing their past contracts, visiting their job sites, and asking detailed questions about their experience and processes.

GET IN TOUCH: 

Guest: Dan Bawden

Business Title: Owner and President

Company: Legal Eagle Contractors, Co.

Website: https://legaleaglecontractors.com/

Full Transcript