Chapter 11: Understanding Contractor Pricing

In the previous chapter, we walked through the permit process and discussed how construction plans are reviewed and approved by the city.Once your permits are issued, the next major step in the ADU journey is hiring the contractor who will build your project.But before you begin reviewing contractor proposals, it’s important to understand how construction pricing actually works.Many homeowners are surprised by how much contractor bids can vary.Two contractors may review the same plans and submit proposals that differ by tens of thousands of dollars—or sometimes much more.In this chapter, we’ll break down how contractor pricing works and what factors influence the cost of building an ADU.Visit StrategicADU.com for more ADU resources.