I tell everyone that I am getting multiple bids. That way they know that they should be competitive, and they also understand that they may not get the business. Unless your relative is doing the work and you have no other choice, I think you need due diligence before making such a large purchase. I have between 4-12 bids for each major part of my new construction. I didn't decieve any of them, and I picked some with detailed costs and some without detailed costs.

On the other hand, some people go to their new closest car dealer, pay sticker, and are completley happy. There's nothing wrong with that, it's just not how I would do it.

I forgot to mention, I think $10K is a little steep for modifying existing plans. I spent about $3K for my plans which were completley from scratch, about 4000 SQ/FT (not counting the basement), and "engineered". I hired a designer from CA, and a local Michigan engineer. What state are you from? I also talked to an architect on EBAY who was willing to take my drawings to construction plans for about $600.

Brian, Thanks for your response, I am in Oregon. The 10k was for a custom design incorporating the features we liked from the Don Gardner home.
I had expected to get multiple bids for everything, then someone in the industry whom I respect put another 'spin' on things. He asked me, "If you know what something should cost, and you know what you want and you feel like the person you are working with can deliver the end product-why would you keep shopping around?" It was a new way of looking at things for me, and I was just wondering the opinions of others on the subject.

yea, there is always more than one side to the argument. In my mind, even though I am GC'ing my own house I don't feel I know what fair prices are. The only one who knows what the real fair price is, is that tradesman making the bid. Some guys out there really need the work, others have more than they can handle. So I get a handfull of bids, meet with the ones I think are serious, and then go with the one that is the best overall value (experience, availablility, cost, etc). Somtimes I even share the low bids with the contractors I really like, they may even come down.

I am breaking ground next week. Looking back on the process, I can't imagine only getting bids from one. You also learn more about your project by getting more bids based on the questions they ask you.

it goes back to the new car analogy. I'd buy with price as a major factor, but many other people would go based on service as a higher factor. It's your money so you have to be sure that you get exactly what you need from the whole experience.

brianherron,

If you don't mind my asking, was your architectural designer from northern california? I'm desperately looking for one, and just got quoted $6/sf from a very experienced designer...architects are even pricier around here! Thanks for any info you may have...

Costa Mesa, CA

http://www.dmdesignz.net/

It's great you found a firm that you have confidence in! If you have been on this board for any length of time you know that even good relationships with contractors can change. The initial meeting with contractors is usually very rosy as they are doing their job to sell themselves to you. Getting a competitive bid is for your protection.

If it were me ... I would agree to a price to draw the plans WITH the stipulation that the plans are owned by me meaning the contractor can not build the same home for anyone else and that I have the option of using any builder. Then I would get competitive bids to be sure that the pricing for my favored contractor is in line. I would not want to spend $10,000 on plans only to realize that it is not the builder I want to use and I can not build the home using any other builder. Just remember life happens and many things can change between now and when your ready to build ... the builder's personal life can change (divorce, illness, death), or the builder's financial situation may change (lawsuits, bankruptsy, etc), or even the builder's workforce may change (site supervisor, crews, subs, etc). This is a business transaction and you need to protect yourself.

Liketolearn, you make some good points, Thanks for your response.
The architect and builder are not affiliated so the plans would be ours to take to which ever builder we were interested in.
We have decided that we will get more than one bid on the plans just to compare. We know this firm is likely higher priced than some because of their name and reputation. In addition there may be some room for negotiation. As for the builder we think it would be wise to get another bid just to compare the pricing. Not because we are concerned her pricing may be too high, but too 'optimistic'. That way if another bid comes back alot higher we can review her bid with her and question how realistic it is. We have sort of gotten caught up in how great the working relationship is with this builder and it makes it harder to be businesslike and do our due diligence. Thanks for reminding us why we need to stay on track with that.