Love the Budget or Leave it?
Sunday, December 17, 2006
At Construction Deal, we've been hearing from many contractors in our network about the project budgets.You've said the budgets posted by project owners are too low. Since our goal is to help you expand your business, we wanted to reach out to you.
We always try to provide you with as much information as possible to help you bid on the remodeling, building, and repair leads posted on our site. The budgets are chosen by the homeowners and business owners but many of you have complained that these budgets are not realistic. These are not numbers set in stone or final in any way - these are the figures from people who may not have any idea how much it will cost or are afraid if they put too high a budget, they'll end up paying too much.
So, we want to know:
Do you want us to continue to include the budget information in the projects we send you?
Please let us know what you think. Contact us at bizdev@constructiondeal.com or post a comment here on Contractor Update! (Click on the link just below that says, "Comments")
RELATED POSTS:
Our Budget Survey Results
Labels: Budgets, Construction Deal
15 Comments:
commented by 
brenda, 6:59 AM
brenda, 6:59 AM
Entered for Nancy M. of Howard Stanley Realty, llc:
"Yes--budget info gives us an idea of how well qualified the prospect is for the job he desires"
"Yes--budget info gives us an idea of how well qualified the prospect is for the job he desires"
From our emails:
"Yes, include the owners estimated budget........they may not have a clue as
to what the cost of a project will be but at least it gives the contractor
an idea of what they are thinking.
Thanks,
Ron C.
Cam II Framing"
"Yes, include the owners estimated budget........they may not have a clue as
to what the cost of a project will be but at least it gives the contractor
an idea of what they are thinking.
Thanks,
Ron C.
Cam II Framing"
From our emails:
"Hi:
I like that you provide the general budget information, so we can decide if we are interested in bidding that project. Also, any contractor knows that you can’t rely in owner’s budget or owner’s estimate because they most of the time are wrong on pricing. Even we the contractors are wrong in pricing most of the time.
Thanks,
Guillermo Vargas
Estimator / Assistant Project Manager
The Hardy Group"
"Hi:
I like that you provide the general budget information, so we can decide if we are interested in bidding that project. Also, any contractor knows that you can’t rely in owner’s budget or owner’s estimate because they most of the time are wrong on pricing. Even we the contractors are wrong in pricing most of the time.
Thanks,
Guillermo Vargas
Estimator / Assistant Project Manager
The Hardy Group"
From our emails:
"To Whom It May Concern,
Yes--please keep on sharing their budget amounts with us because it is at least an indication of what the homeowners are thinking.
Thanks for asking!
Nicole J. Turpin"
"To Whom It May Concern,
Yes--please keep on sharing their budget amounts with us because it is at least an indication of what the homeowners are thinking.
Thanks for asking!
Nicole J. Turpin"
From our emails:
"Since we are in the HVAC business we know customers have no idea what the cost are as far as budgeting. Most of our customers go through some "sticker shock" when they
see the actual cost. It would be better to ask if they want repair or replacement.
Whichever they choose you should give them the range. Example replacement of a outside condensor $0-2000.00,$2000.00-$5000.00 etc. Do not let them set the range that they think it will cost. This way when they see the range for the budget, they will not be so "shocked" by our bids and will be more realistic on what to expect. I
would rather see X customer wants a bid on an 3.0 ton evaporator coil. Budget $0-$2000.00.
If you already are giving them a range, I suggest that you increase the range i.e $0-1000.00 to $0-2000.00 ect... I would like to see if they are serious about bids
or just shopping to see what the cost would be. Cost have and are on the increase all the time. For example say you got a bid for a job today but were not planning to do anything say for 6 months. I promise the cost will the price will change over that period of time.
Anyway, these are a few suggestions of which you probably have received a multitude of from other contractors. Good Luck
By the way Merry Christmas!!!
David K
DD Mechanical Services"
"Since we are in the HVAC business we know customers have no idea what the cost are as far as budgeting. Most of our customers go through some "sticker shock" when they
see the actual cost. It would be better to ask if they want repair or replacement.
Whichever they choose you should give them the range. Example replacement of a outside condensor $0-2000.00,$2000.00-$5000.00 etc. Do not let them set the range that they think it will cost. This way when they see the range for the budget, they will not be so "shocked" by our bids and will be more realistic on what to expect. I
would rather see X customer wants a bid on an 3.0 ton evaporator coil. Budget $0-$2000.00.
If you already are giving them a range, I suggest that you increase the range i.e $0-1000.00 to $0-2000.00 ect... I would like to see if they are serious about bids
or just shopping to see what the cost would be. Cost have and are on the increase all the time. For example say you got a bid for a job today but were not planning to do anything say for 6 months. I promise the cost will the price will change over that period of time.
Anyway, these are a few suggestions of which you probably have received a multitude of from other contractors. Good Luck
By the way Merry Christmas!!!
David K
DD Mechanical Services"
From our emails:
"Hi,
Contractors are right, the budget number idea is not a good idea. I would not spend any time on people shopping for a price.
The number they indicate tells me the type of person with whom I dealing. Let the other contractors waste their time without recompense for the resources they used to give a free estimate. Inconsiderate types will ask for information and most likely end up paying much more in the end or end up with a poor quality job.
Bruce Kunkle"
"Hi,
Contractors are right, the budget number idea is not a good idea. I would not spend any time on people shopping for a price.
The number they indicate tells me the type of person with whom I dealing. Let the other contractors waste their time without recompense for the resources they used to give a free estimate. Inconsiderate types will ask for information and most likely end up paying much more in the end or end up with a poor quality job.
Bruce Kunkle"
From our emails:
"Yes, please continue to include the project budget. Something to start with is better than nothing.
Thanks,
Dallas Grubbs
Grubbs Construction Services"
"Yes, please continue to include the project budget. Something to start with is better than nothing.
Thanks,
Dallas Grubbs
Grubbs Construction Services"
From our emails:
"Hi, my name is Juan Gomez. I’m an architect which has recently joined your services.
It is very important that the person who receives the phone in information has basic knowledge of the cost of construction. By your statements the person talking the information, doesn’t have this knowledge. Therefore, when they write down the owners estimated budget they are not equipped to advise the owner that the numbers fall far short of reality."
(Hi, Juan - Construction Deal here! I just wanted to let you know that our phone reps do qualify every lead. We talk to them about the budget - asking if they think it's realistic when we KNOW it's not, but we go ahead with their final suggestion since it's there request!)
Back to Juan's email:
"When the clients fill in their request go ahead and provide the question on budget. Your job should be to inform the client that the budget they have submitted to your staff, has in the past, not been on target. Perhaps information can be sent to the client, in the form of a dos and don’ts. That explain the construction industries standard procedures, such as: Advise them that without the architectural construction documents a contractor can only give them a rough estimate and that, that estimate shall change once the documents have been submitted for bids and all bids are in. One more thing the client should be informed that they need to obtain the estimate of at least 3 certified contractors in their area.
Juan"
"Hi, my name is Juan Gomez. I’m an architect which has recently joined your services.
It is very important that the person who receives the phone in information has basic knowledge of the cost of construction. By your statements the person talking the information, doesn’t have this knowledge. Therefore, when they write down the owners estimated budget they are not equipped to advise the owner that the numbers fall far short of reality."
(Hi, Juan - Construction Deal here! I just wanted to let you know that our phone reps do qualify every lead. We talk to them about the budget - asking if they think it's realistic when we KNOW it's not, but we go ahead with their final suggestion since it's there request!)
Back to Juan's email:
"When the clients fill in their request go ahead and provide the question on budget. Your job should be to inform the client that the budget they have submitted to your staff, has in the past, not been on target. Perhaps information can be sent to the client, in the form of a dos and don’ts. That explain the construction industries standard procedures, such as: Advise them that without the architectural construction documents a contractor can only give them a rough estimate and that, that estimate shall change once the documents have been submitted for bids and all bids are in. One more thing the client should be informed that they need to obtain the estimate of at least 3 certified contractors in their area.
Juan"
From our emails:
"HI: I think is very good idea to keep including the budget, at least we have a idea of what or who we are working. Thank you, DAVID"
"HI: I think is very good idea to keep including the budget, at least we have a idea of what or who we are working. Thank you, DAVID"
From our emails:
"Hello. The budget in the leads is a good thing. Maybe as a suggestion you could let the home owners know
that they have to keep in mind materials and labor. I just finished a job that i got from you and it was a great experience. Hope all the leads I follow up on are as good as that one. The homeowner
understood that the materials were out of my control. But on this one
I still was able to keep it within the budget proposal."
"Hello. The budget in the leads is a good thing. Maybe as a suggestion you could let the home owners know
that they have to keep in mind materials and labor. I just finished a job that i got from you and it was a great experience. Hope all the leads I follow up on are as good as that one. The homeowner
understood that the materials were out of my control. But on this one
I still was able to keep it within the budget proposal."
From our emails:
"The budget info contained can only help as it can give us an idea of quality of materials and or fixtures.
Thanks !!!
Lewis J. Young IV."
"The budget info contained can only help as it can give us an idea of quality of materials and or fixtures.
Thanks !!!
Lewis J. Young IV."
From our emails:
"Please continue to post as much informatiion as possible. I have found this helps me prepair an explanation as to the reasons some proposed budgets won't make the grade. It helps satisify potential customers minds, in a potential contractor can answer questions and provide information on a faster response when they ask us questions."
"Please continue to post as much informatiion as possible. I have found this helps me prepair an explanation as to the reasons some proposed budgets won't make the grade. It helps satisify potential customers minds, in a potential contractor can answer questions and provide information on a faster response when they ask us questions."
From our emails:
"We need to see the budget." - Wm. Auten
"We need to see the budget." - Wm. Auten
From our emails:
"On the subject of project estimates, I agree that more often then not they are way too low.
Whether or not you should get rid of them I believe you should keep them.
Marco Donato"
"On the subject of project estimates, I agree that more often then not they are way too low.
Whether or not you should get rid of them I believe you should keep them.
Marco Donato"
I agree, so why even have a budget selection option for homeowners. It just allows for them to be set up for disappointment. They can begin to decide on their project budget after they start receiving actual price quotes from contractors, who do know how much it costs. Usually the only contractors who will bid on a project with an unrealistically low budget specified, are the ones who may not be properly licensed in the customer jurisdiction, and probably doesn't carry any kind of insurance, or have any warranty, or doesn't honor warranties. If this is the type of contractors that homeowners are getting in touch with through Construction Deal, they will soon develop a sour taste for using Construction Deal.