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Avoiding Commercial Project Underbids
Commercial construction projects are frequently presented with a number of challenges when cost estimates are well below the actual costs. One of the more prevalent issues is underbidding, which leads to losses, delays in project timelines, or potentially worse, lawsuits and/or disputes between contractors and clients. The best strategy to avoid these issues is to obtain true quantity takeoffs and logic-based competitive pricing models. A small initial estimating error can create a tremendous issue once work begins. Here is where professional roofing estimating services would help. With proper take offs and traditional estimates of labor and resources, contractors can bid competitively while protecting their profits. Moreover, careful take offs will account for various hidden costs or risk of excessive expense overruns. In today’s construction industry it’s just not underbidding, its also about completion and generating long-term trust between client and contractor if you want to be engaged for future work in proposals.
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- Not sure I totally agree that professional estimating services always catch everything.
- Even with detailed takeoffs, we’ve run into surprises - like hidden deck rot or weird code updates halfway through a job.
- Sometimes the “logic-based” pricing doesn’t factor in local labor shortages or sudden material hikes.
- Anyone else feel like experience on the ground matters just as much as fancy estimates?
- I get the trust thing, but clients sometimes push for low bids no matter what numbers you show them...
Had to laugh reading this - my first reno, the estimate looked so official, all those line items and numbers. Then demo day comes and, surprise, there’s a squirrel condo in the attic and half the wiring is from the 60s. The estimator didn’t see that coming. I get that you need the numbers, but honestly, nothing beats someone who’s seen a hundred weird basements. Also, my neighbor swore his project would be “right on budget”... until lumber prices doubled overnight.
honestly, nothing beats someone who’s seen a hundred weird basements.
That’s the truth. My first estimate looked airtight on paper, too, but I swear these houses are like mystery boxes. We had “minor” water damage turn into a full-on plumbing reroute when they opened a wall. I still look at those line items with suspicion. Numbers help, but experience (and maybe a little luck) go a long way. I’m convinced no one actually stays on budget unless they’re just patching paint.
Yeah, those “minor” issues have a way of snowballing fast. I’ve had bids where I thought I’d covered every angle, then a hidden HVAC duct or old wiring pops up and the whole schedule gets thrown off. Even with solid takeoffs, there’s always something lurking. I guess the best you can do is pad for the unknowns and hope you don’t get burned too often.
That’s been my experience too, even on smaller home projects. I’ll start thinking I’ve got everything mapped out, but then something random pops up - like last year, I was redoing a bathroom and found an old vent pipe tucked behind the wall that wasn’t on any plans. It turned into a whole extra weekend of work just to reroute it. I can only imagine how much bigger those surprises get on commercial jobs.
Padding for the unknowns makes sense, but I always wonder where to draw the line. If you pad too much, your bid looks high and might get tossed, but if you don’t, you’re almost guaranteed to eat some unexpected costs. It’s a tough balance. I try to keep a little “oops” fund set aside for every project now, even if it’s just a few hundred bucks for home stuff. There’s always something weird in these older buildings - bad wiring, mystery pipes, or even old insulation that crumbles as soon as you touch it.
One thing that’s helped me is talking with neighbors or folks who’ve worked on similar houses nearby. Sometimes they’ll warn you about quirks in your area - like certain years where builders used aluminum wiring or weird plumbing setups. Not sure how much that translates to big commercial jobs, but maybe there’s a version of that, like chatting with subs who’ve seen the building before.
I do think sometimes we overthink the worst-case scenarios and end up stressing more than we need to... but then again, those curveballs are what make projects memorable (not always in a good way). At this point, I just expect at least one “how did THAT happen?” moment every time I pick up a hammer. Keeps things interesting, I guess.
Yeah, that “how did THAT happen?” moment is pretty much a given, especially with older buildings. I’ve seen it a lot with green roof retrofits - stuff like hidden roof drains or weird old patch jobs that nobody documented. I agree, you can’t pad forever, but not padding at all is just asking for trouble. I usually try to get as much info as possible from folks who’ve worked on the building before, but even then, there’s always something you can’t predict. It’s a balancing act, and honestly, sometimes you just have to accept you’ll eat a cost or two.
- Totally hear you on those “how did we miss that?” moments… I once found a whole HVAC chase hidden behind drywall that nobody had on the drawings.
- I try to budget a 10-15% contingency, but honestly, sometimes that’s still not enough, especially with buildings from the 60s or older.
- Getting info from previous crews helps, but yeah, there’s always some weird patch or hack job lurking somewhere.
- Anyone ever tried doing exploratory demo before bidding? I’ve had mixed luck - sometimes it saves money, sometimes it just adds up front costs.
- At this point, I just expect to eat a surprise cost every project. Not ideal, but seems unavoidable with old properties.
I get where you’re coming from, but I actually think exploratory demo is worth it, at least for roofing. We’ve uncovered rotten decking and sketchy repairs that would’ve blown the budget later. Yeah, it’s an upfront cost, but sometimes it’s cheaper than the “surprise” mid-project change orders. That said, I’ve had a few times where we poked holes and didn’t really learn much... kind of a gamble, honestly.
Exploratory demo is one of those things that feels like buying insurance - sometimes you’re glad you did, sometimes you’re just out a chunk of cash and left scratching your head. I’ve had both outcomes on commercial roofs. Once, we found a patchwork of old repairs under a membrane that looked fine from the top. Saved us a world of pain (and money) down the line. But then there was the time we cut a few test holes and basically just confirmed... yep, it’s a roof.
I will say, with green roofs, it gets even trickier. You can’t always see what’s going on under all that soil and vegetation without poking around. And if you skip the demo, you risk missing stuff like failed waterproofing or hidden rot, which is a nightmare once you’ve got a few tons of sedum and dirt up there. On the flip side, demo can mess with warranties or create more work if you’re not careful.
It’s a gamble, for sure. I try to budget for at least a couple of test cuts, especially on older buildings or anything that’s had “creative” repairs in the past. Sometimes I’ll use thermal imaging first - doesn’t catch everything, but it’s less invasive and can help decide where (or if) to open things up.
Honestly, I’d rather deal with a small upfront cost than get hit with a monster change order halfway through. But yeah, sometimes you just end up paying for peace of mind... or for a few new holes to patch.
Honestly, I’d rather deal with a small upfront cost than get hit with a monster change order halfway through.
Preach. I’ve had projects where skipping a couple of those “peace of mind” cuts ended up costing way more in the long run. But man, green roofs are a different beast - one time we found a leak only because the sedum started looking like it needed a lifeguard. Still, I always wonder if there’s a way to get around demo without feeling like I’m playing the world’s most expensive game of Minesweeper. Anyone actually trust just the thermal scans? I’ve had mixed results.
Anyone actually trust just the thermal scans? I’ve had mixed results.
Thermal scans are a decent tool, but I wouldn’t rely on them alone, especially with green roofs. Vegetation can mask or confuse the readings - seen it happen more than once. I usually pair thermal with a moisture meter and, if possible, a small test cut in suspect areas. It’s not perfect, but it beats chasing phantom leaks later. Demo’s a pain, but sometimes it’s the only way to be sure.
I’ve had thermal scans throw me off before, especially on older ballasted roofs. Once, the scan flagged a whole section as wet, but when we cut in, it was just residual heat from some HVAC work earlier that day. Now I always double-check with a moisture probe and, if the numbers don’t add up, I’ll open up a small area. It’s more work upfront, but it’s saved me from underbidding when hidden damage pops up later. Those surprises can kill your margins fast.
Now I always double-check with a moisture probe and, if the numbers don’t add up, I’ll open up a small area.
That’s the only way I trust the results anymore. Had a scan mislead me last year - turned out to be sun-baked gravel, not moisture. It’s tedious, but skipping those checks cost me a bundle once. I’d rather spend an extra hour than eat a surprise later. Thermal imaging’s great, but it’s not gospel.
I get where you’re coming from, but I’ve honestly had the opposite happen - over-checking ended up costing me more in patchwork repairs than just trusting the scan and monitoring over time. Maybe it’s just my luck, but sometimes opening up a “suspicious” spot led to more headaches than leaving it alone. I do agree thermal imaging isn’t perfect, but I guess I’m a little more willing to gamble if the readings look consistent and there’s no other red flags. Guess it depends on how much risk you’re willing to take on a given project.
I get what you’re saying - sometimes poking around too much does open a can of worms, especially if the area’s been stable for a while. Still, I’ve had a couple projects where ignoring a “minor” blip on thermal led to way bigger issues down the line. Maybe it’s just my luck, but I’d rather deal with a small patch now than a full tear-out later. Guess it’s always a bit of a gamble either way.
That’s interesting - I’ve wondered about this too. I get nervous about “minor” things showing up on scans, especially since I’m still learning what’s normal and what’s not. My inspector flagged a small warm spot near my attic vent, but the contractor said it was probably nothing. Still, I keep thinking if I’d ignored it and it turned out to be a leak or insulation gap, the repair would be way worse (and pricier) down the road. Maybe it’s overkill, but I’d rather investigate early than risk a bigger headache later.
My inspector flagged a small warm spot near my attic vent, but the contractor said it was probably nothing.
Honestly, I’ve seen “probably nothing” turn into “definitely something” more times than I can count. Warm spots near vents can be sneaky - sometimes it’s just the sun, but other times it’s insulation gone AWOL or a tiny leak plotting its next move. I always tell folks, it’s like ignoring that weird noise your car makes... sure, maybe it’s nothing, but if your roof starts leaking during a storm, you’ll wish you’d checked it out sooner. Better safe (and dry) than sorry.
I’ve learned the hard way that “probably nothing” is usually code for “you’ll be paying for this later.” Had a tenant once who kept brushing off a warm spot on their ceiling - fast forward a couple months, and we’re all doing the bucket brigade during a rainstorm. Not my favorite day.
Thing is, with commercial projects (and really any property), those little flags from inspectors are like breadcrumbs leading you to the big stuff contractors sometimes miss or just don’t want to deal with. I get that not every warm spot means doom and gloom, but I’d rather spend an afternoon poking around in the attic than shell out for emergency repairs at 2 a.m. during a thunderstorm. Plus, if you’re dealing with insurance, they love to find reasons not to pay out. “Oh, you ignored that?” - yeah, good luck getting them to cover it.
I’m also a big fan of second opinions. Contractors are great, but they’re not always looking at things with the same level of paranoia as someone who’s responsible for the whole building. Sometimes it’s just a lazy patch of insulation, but other times it’s a sign your vent’s not sealed right or you’ve got moisture sneaking in. Either way, ignoring it is like playing roulette with your maintenance budget.
And about underbids - if your contractor is already brushing off small stuff, that’s a red flag for me. Those “cheap” projects have a way of ballooning once the real issues come out. I’d rather have someone who’s a little more cautious up front than someone who gives me a bargain and then hits me with change orders every week.
Long story short: trust your inspector, double-check the weird stuff, and don’t let anyone talk you into ignoring your gut (or your attic).
- Totally agree about the “probably nothing” line - been burned by that myself.
- I’d rather pay for a small fix now than a big mess later, especially when insurance gets picky.
- Second opinions have saved me a couple times, even if it’s just peace of mind.
- Cheap bids always make me nervous... they usually mean corners are getting cut somewhere.
- Gut feelings matter. If something feels off, I poke around until I’m sure it’s nothing (or not).