I recently received a phone call from a referred prospect that needs his roof replaced. Upon arriving at the prospect’s home, he presented me with a set of plans to measure the roof, as opposed to walking the roof (it is quite steep in areas) and he presented me with his insurance settlement.
I measured the plans and came up to within a square of what the insurance adjuster came up with as it is a steep but simple roof. Now, I’m not a stormer and primarily do about 60% new construction high-end slate, clay tile, concrete tile, metal and shingle roofs and 40% re-roofing in the greater Houston area. Upon reviewing the insurance adjuster’s compilation of figures I saw that he included all of the accented hip / ridge trim, ridge vents, replacing all pipe flashings, protection of landscaping, protection of the paver driveway and patios, steep charge…etc. It was all there. No expense spared.
Having read all of the usual posters on this board complaints about insurance claim settlements, I expected the worst. I did my usual spreadsheet for the base bid, inclusive of GAF Timbeline HD, Timbertex, Prostarter, Shingle Mate felt paper, Stormguard in the valleys and at pipe penetrations, pre-finished drip edge, 1.5" hot-dipped nails, new lead jacks, pre-finished roof jacks & step flashings, etc. I was extremely suprised to find that based on the claim settlement that we could do the roof for the settlement amount ($28K) and make about 60% above cost. Yes…60%.
Now, the homeowner wanted me to also bid GAF Camelot II. No problem for me. Done them before and know what it takes to do them properly. So I did so and only added in the actual cost difference between installing the Camelot II (a little more labor because it goes a little slower, the difference between the Timberline HD price and the Camelot II price and switching out the Prostarter for the more expensive Weatherblocker starter).
I felt pretty good about my pricing and left it at that.
Homeowner gets a second bid. I expected that. Homeowner had 2nd bidder bid work exactly the same (so he says and I believe him & have no reason not to based on his extreme interest in each product I said in writing that we would use). 2nd bidder said he would do the GAF Timberline HD for the insurance proceeds (pretty much what I did so no problem there).
Turns out, the Homeowner wants the Camelot II over the Timbeline HD.
So, 2nd bidder lowered his price to under the insurance settlement amount ($28K) to $25K for the Camelot II.
Homeowner goes with 2nd bidder. Go figure.
So, am i the chop or is the 2nd bidder? If i’m the chop, where did I go wrong?