There is a rule I learned and adopted from the time I was a financial controller. Whenever any department – operations, engineering, maintenance, sales and marketing – wanted to spend over a certain dollar threshold, they had to get 3 quotes. I wouldn’t even consider reviewing the ask to submit for approval if it didn’t have this support.
It wasn’t a requirement for routine maintenance or emergency repairs but for something new that had no established baseline or preferred vendor. Most think it is solely for price, to get the best possible deal.
The rationale is far deeper.
For every major house project, I make us get 3 quotes. If it is a project, I know little about or have never had done, it will establish a baseline knowledge. The first quote you have no idea what to even ask because you’re essentially clueless which isn’t a good position to be in. By the second, you have more knowledge and understanding to ask more in depth questions and by the third you’ll be competent enough to ask the correct questions.
My husband knows I have this rule. He found three vendors/showrooms to visit for our chimney/fireplace options. We had fireplaces in our three previous houses but never used them enough to change anything.
The first place was a vast showroom in a nondescript strip mall with high-end merchandise. We explained what we were looking for asking for ideas. The person helping us walked us straight to the highest end solution and quoted us $20,000.
The second place was a complete 180. It was a large, standalone showroom but he quoted us the absolute bare minimum $1,000 and told us to ignore the other issue we are trying to solve while disparaging the company who had done our chimney inspection.
The third place had a modest showroom in a strip mall with several big name stores. They were knowledgeable demonstrating three options and telling us we should get another opinion on our other issue. Although their reference never returned our phone call.
In the last showroom, I already ruled out one option because I could immediately smell gas after he turned it on. All of them knew that it was an issue with this option and didn’t recommend it. After looking at the size of the openings of our fireplaces, I could tell the Rolls-Royce option wasn’t going to work either and would reduce the fireplace aesthetics. Once I showed my husband why, he agreed.
We now know that the automated version that came out last year, a step-up from the bare minimum, is want we want but we need to get that second or third opinion first. It will probably cost us around $6k – $10k for the entire project and will have a positive effect on resale rather than a negative one.
Each of the vendors/showrooms proposed different approaches to the same project that helped us gain knowledge and different perspectives. These varied insights and solutions helped us make better decisions about our project and the direction we wanted to take.
By getting the three quotes, it put us in a much stronger, well informed position for what we needed. It got us to the truth.
How to get to the truth?
Pay attention for these red flags. It works for scammers too for whatever they are trying to sell or scare you with.
Unusually low bids. Could mean they use substandard materials, cut corners or add changes later.
Excessive upfront payments. Small projects may charge half upfront but never pay the entire amount. Large projects should bill at a percentage-of-completion rate, not calendar dates with 33% as the most upfront.
No contract or pressure to sign the proposal immediately without time to consider your options and read the fine print, especially the warranties and guarantee of work. Never sign under pressure.
Slow to respond. Avoids answering questions or provides vague answers. Unprofessional behavior or inconsistent work hours. We’ve experienced all of these and more frequently in the last few years.
Lack of proper credentials or insurance.
No previous work examples or references.
Three quotes and the truth.
“By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest.” -Confucius
“Life is divided into three terms – that which was, which is, and which will be. Let us learn from the past to profit by the present, and from the present, to live better in the future.” -William Wordsworth
“To succeed in life, you need three things: a wishbone, a backbone and a funny bone.” -Reba McEntire
Footnote: I have to admit that the entire premise of this writing is based on “Three Chords and the Truth,” a song (Chase Rice, Sara Evans) and a phrase coined by legendary songwriter Harlan Howard to describe the heart of country music, honest and simple. One of my dislikes had always been The Nashville Network which my Dad seemed to watch every time we wanted to watch SNL. It was competing priorities with only one TV.
The Nashville Network no longer exists, and the algorithm has me liking enough country music that I actually have a playlist. After going through a series of changes, The Nashville Network is none other than the modern-day Paramount Network.
Multiple Contractor Quotes Construction: Essential Tips & Red Flags to Avoid