Spokane Apartments: Contractor Bids are In!

When I walked through the apartments the first time I built a list of items that I thought would be replaced. The next day I went to Home Depot and priced out the list at retail of what I needed to give me an idea of the cost. After all that I included an extra 40% to that cost to figure in labor/overruns.  Let me remind you, my numbers are based on RETAIL prices.  Bought in bulk there should be at least a 20% discount.

Retail $200,000.00
20% Discount -$40,000.00
Expected Cost: $160,000.00
50% Overrun $100,000.00
Expected Rehab: $260,000.00
New Items add $50,000.00
After Walkthough Cost: $310,000.00
Bid A: $472,700.00
Delta: $162,700.00
Bid B: $393,400.00
Delta: $83,400.00

Such Differences!  The smallest one came in at almost $85k more than anticipated!  Let’s look at some of the rehabdifferent items:

Permitting Costs:

$6,000 from Bid A, and $9,100 from Bid B. This is a cost that I hadn’t created a line item in my estimate, so it is a fair overrun on the cost.  Lets bump that up on my spreadsheet

Painting Fee:

I’ll be honest, this is one of the estimates that I came up with.  But $30k for sanding and painting? The whole building is 12k square feet. So for my assumptions I put in $1.75 per square foot, and under-estimated the square footage by 5000 square feet (I wasn’t thinking about the interior hall ways) but even with that I still get $21,000.  By looking online I see that it should cost about $1.02/sqft.  Include some wall de-greasing and prep work by adding in another $0.73/sqft, because not all the apartments need it and those that do should add $1/sqft.  So I’m assuming that 3/4ths of the rooms should need some extra work. Their estimate came in at $2.50/sqft.  It’s one place that I think is too high-priced.

Plumbing Costs:

One of the items that I didn’t account for was changing over the kitchen sink plumbing it seems that they are old commercial type plumbing fixtures which would need more expensive kitchen faucets, and are harder to work with. Bid A came back with a $85,000 plumbing line item, and since Bid B didn’t break down cost, I’m a little concerned, looking at the bids these are the items I think are included in this $85k

  • Kitchen Sink Plumbing
  • New Tubs
  • New Vinyl Enclosures
  • Fixtures
  • Industrial Water Heaters installed

Of those I just hadn’t accounted for the Plumbing Cost, one I don’t feel comfortable providing estimates on.

New tubs at Retail are $125.  Giving me a new line item of $4,500.

Bathtub Surrounds, of the cheap Vinyl type are $65. Giving me a new line item of $2,350.

Industrial Water Heaters.  The apartment now has 2 older water heaters supplying the 36 units.  Both need to be replaced, and it probably doesn’t support the needs of the complex, a little googling shows that I can get enough to supply the units for about $7,000.

WP_20150622_096Plumbing Costs added to my Rehab Estimate: $4,500 + $2,350 + $7,000 = $13,850

Doors and Trim:

I estimated $7,500 for doors, but did not take into account any trim work.  Their estimate: $15,500 Almost 2x the amount of a retail doors, without any bulk-buy discount.  I don’t think that the trim work & labor costs should be double the amount for retail doors.  There are less than 10% of the doors that need trim work/framing.

Let’s wrap this up for today with an adjusted estimate:

Retail $271,959.00
20% Discount -$54,391.80
Expected Cost: $217,567.20
50% Overrun $135,979.50
Expected Rehab: $353,546.70
Bid A: $472,700.00
Delta: $119,153.30
Bid B: $393,400.00
Delta: $39,853.30

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