Putting a roofing project out to bid generates a list of challenges. With no set bidding system, roofing contractors send proposals with different information, details, and jargon. Navigating these different bids and understanding what prices are comparable or when bids are not genuinely offering the same roofing product is one main hurdle in selecting the right reroof or service for a property's needs.

Best Practice for Bidding

There are a few tips for putting a project out to bid that will help mitigate the headache of sifting through numerous unworthy proposals. Property owners protect themselves from fly-by-night contractors by inviting only properly qualified contractors into bidding. If you need a trusted vendor partner or multiple bids, talk with folks in your network and look for roofing contractors who receive multiple references from owners/managers with properties like yours. Be wary of Google since many residential contractors and storm chasers will pose as commercial contractors on their websites. However, they often do not possess the proper certifications, skills, or experience to complete a commercial roof or a high alpine roof specification.

Key Comparisons

After pre-vetting contractors, it is time to delve into the proposals received and start comparing. Even if these contractors have been recommended, the first step is to ensure the contractor can provide third-party manufacturer warranties. Then, it is worth requesting each contractor provide a list of project references and contact information and follow up with references.

Property owners and managers are not expected to understand the minutia and details of a roofing proposal. Having a trusted vendor (even if you don't end up using them) is essential during this step to assist in reviewing specifications without sharing pricing. A trusted roofing contractor can look through different bids and explain how they differ or what products and installations are comparable (apples to apples). Check up on references within your network who have worked with the contractors bidding on the project. Ask whether the roofing contractor regularly requested change orders, how it was to work with them, the job site's cleanliness, and if the contractor followed through with what they promised.

Complete your due diligence by checking the insurance for each possible contractor. A simple certificate of insurance may not be enough. To confirm that your property is covered, request a copy of the insurance policy and confirm that all contractors have coverage for the type of work being performed. Insurance companies often sell policies to contractors that do not cover the work the contractor is bidding on.

Red Flags

If a contractor cannot provide four to five local customers as references for similar projects, they likely have not completed or properly completed projects of your type or scale. Verifying that the contractor has a robust service department with in-house employees is also essential. Companies without a dedicated service department often operate as brokers who hire subcontractors and accept the lowest labor bid they can find to complete the work. These companies frequently provide excellent sales presentations but do not follow through with quality, safety, and production since they are not hands-on and oversee the work. This method also motivates the contractor to hire subcontractors who may earn a profit for themselves by cutting corners, with the brokerage company having little to no quality management during the project. Also, watch out for bids lacking detail and having ambiguity in the scope, as these factors often lead to cut corners and/or numerous change orders.

Shopping for the Lowest Price is Risky

Choosing the lowest bid without thoroughly vetting the contractor regularly leads to poorly done reroofs that must be repaired yearly, lack manufacturer warranty protection, and risk incomplete jobs.

Property managers and owners who consistently choose the lowest bid risk no longer receive bids from top-tier contractors who will not meet the low price. These top-tier contractors cannot meet these low prices because they refuse to cut corners, pay proper insurance coverage, pay proper payroll tax, and provide a fair wage for skilled employees.

High-end, qualified contractors are often brought in after a low-price project is completed to clean up the issues. For example, Turner Morris Commercial Roofing is working on a $400,000 repair job for a roof installed only four years ago. They will likely need to repair and replace further roof sections over the next 2-3 years. Turner Morris bid on this reroof job in 2019 and lost it to a contractor bidding around $350,000 lower. With lawsuits for interior damage claims and constant repairs needed, the 30% saved by choosing the lowest bid on the reroof has been far surpassed in repairs and other issues. Saving money in the short term hurts the overall cost in the long term. This situation is a common story in the roofing industry, and much of Turner Morris's service department's work involves cleaning up messes created by unqualified contractors.

Spotting Hidden Costs

As mentioned above, developing a relationship and working with a trusted partner to assist in reviewing competitive bid specifications and pointing out concerns or questions is important to qualifying bids. There is always the option to hire a trusted third-party roofing consultant to design the roof system specification who can help bring qualified contractors to the table. Ensure the roof consultant completes quality control inspections throughout the project to keep the roofing contractor accountable.

Beyond Bid Price – 3 Top Reasons to Choose a Contractor

Ensure you know the actual team that will run the project (project manager, project superintendent, project foreman)
Receive local references for similar projects completed by the contractor
Confirm contractors are certified to install proposed products (essential on flat commercial roofs).

Creating and honing a relationship with a trusted vendor will benefit property owners and managers, even if they only sometimes use that contractor for every project. A trusted roofing vendor provides the best overall service, product, and value. Also, with a trusted relationship, the property owner/manager can communicate when disappointed or unhappy with service because both parties are invested in sustaining a mutually beneficial relationship.

Apples to Apples Bids: How to Compare Roofing Contractor Bids