In the construction industry, the lowest price doesn't always win. The most trusted price wins. Homeowners are terrified of contractors who start a job, hike the price halfway through, or vanish.
If your bid is a vague email that says "I can do the bathroom for $10k," you will lose to the contractor who submits a detailed PDF proposal for $12k. Why? Because detail signals competence.
The Breakdown Method (Psychology of Price)
Never give a single lump sum. It triggers "sticker shock." Instead, break your bid proposal into phases.
Example: Bathroom Remodel
- Phase 1: Demolition & Prep - $1,500 (Removal of vanity, tub, disposal of debris)
- Phase 2: Rough-in - $2,500 (New plumbing lines, electrical updates)
- Phase 3: Installation - $4,000 (Tiling, grouting, setting fixtures)
- Phase 4: Finish - $1,000 (Painting, trim, hardware)
- Total: $9,000
This method does three things:
- Justifies the Cost: They see all the work involved.
- Creates "Micro-Yeses": The client might think "$9k is a lot," but they agree that "$1.5k for demo seems fair."
- Protects You: If they cancel the project halfway, you have a clear price for the work already completed.
The "Out of Scope" Clause
Construction is unpredictable. You open a wall and find rot. Your bid must include a clause for "Unforeseen Conditions."
"This proposal covers visible conditions only. Any structural repairs required behind walls will be billed as a Change Order at $X/hour + Materials."
Adding this line protects your profit margin and sets expectations upfront.