You get what you pay for.  Right?  It is a generally accepted principle that the cost of a good or service also reflects its quality or worth.  In our current era of global outsourcing and widespread cost reductions in almost all categories it is easy to forget that this age old adage still holds true in the construction and contracting industries. 

As a general contractor for many real estate investors and successful real estate professionals I have seen the less public effects when individuals make a decision based only on price.  Generally this approach results in a low price but could have unintended consequences.  One of the main consequences is poor construction quality that results in costly rework that is required or worse a property that is unappealing to discerning buyers that want and demand high quality.

When contemplating a project that you are going to bid out the key questions to ask yourself include:

1) Who are my end consumers?

2) What are their expectations for the remodeling / renovations that I am contemplating?

3) Is the work that is being done contributing to the overall aesthetics of the home / building or something that will not be overtly noticed by the buyer (i.e. electrical, internal framing, etc.)

If the renovation or remodel job is a high visibility project like a bathroom, kitchen or living space then the prospective investor should pay special attention to the end result.  A cheap kitchen renovation although good for the pocket book may translate into a home that does not sell or takes months longer due to the poor quality of work.

For helpful tips on estimating construction costs and averages in the industry go to:

http://www.contractor-books.com/RS/Means_Contr_Pricing_Resi_RR.htm

http://architecture.about.com/od/buildingcosts/Building_Cost_Estimators.htm

Scott Shepherd is the Managing Partner of NestBrokers Construction. 

NestBrokers Construction specializes in design / build activities for real estate investors and home owners that demand the highest in quality, affordability and functionality.