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Define the Scope Before You Negotiate a Renovation

I was managing a substantial renovation when I recorded this conversation. I had bids for plumbing, electrical work, and cabinets, and I had to decide what I was actually buying before I could judge whether a price made sense. The details of a renovation change the cost. If the scope stays vague, a lower bid can still leave you with materials or work you did not want.

I had learned some plumbing through years of working around rental properties and construction sites. Knowing enough to ask concrete questions changed my conversations with contractors. The specifications I discuss below belonged to my project; a different building has different requirements and people responsible for doing the work.

Compare the same work, not just the totals

For the plumbing portion of one remodel, I said I had received bids in the $50,000 to $60,000 range and agreed on about $20,000 for labor while buying the materials myself. That was my account of one project in 2021, not a price guide for anyone else’s property. The arrangement also changed what the contractor was responsible for, so the numbers are not a like-for-like comparison of full project costs.

I wanted to choose particular materials and layouts, including the pipe sizes feeding multiple shower heads. I asked the plumber for a parts list and said I would supply the requested items. At the end, I wanted to account for what had been used and what remained. That gave us a more specific agreement than a bid built around a rough count of fixtures.

The point was not to assume every contractor was trying to cut corners. It was to make the work visible enough that we could discuss the same scope. I have written separately about negotiating prices when you understand what you are buying. On this renovation, the material and installation choices were part of the conversation from the start.

Catch a mismatch while it can still be changed

Before leaving town, I walked through the job site with the electricians. I saw 100-amp panels with 30 spaces where I said we had agreed on 200-amp panels with 40 spaces. I told the team to return the panels and use what we had specified. I also described a disagreement over wire size. Whether those specifications are appropriate elsewhere is a question for the qualified people working on that property; my point here is that the delivered materials did not match the scope I had set for my own job.

It was the first day on site. Raising the issue then was easier than discovering after installation that the work had gone in a different direction. I told the contractor plainly what I expected and that we should stop working together if that was a problem. It was a hard conversation, but it kept an unresolved disagreement from becoming part of the finished building.

I described a similar moment with shower drains. The contractor proposed a layout that, as I understood it, would still feed into a smaller existing drain. I went back to the plumber to work through the constraint and the alternatives. The precise pipe dimensions were specific to that building. What transfers to other projects is the habit of checking whether the proposed materials and connections actually serve the outcome you agreed to buy.

Give bids a decision date

When I met cabinet suppliers for the same renovation, I had dimensions and a layout in mind. I asked them when they could provide drawings and estimates, because I planned to make a decision the following week. I said one cabinet estimate was roughly $74,000 and another was about $53,000. Those were quotes I received for my particular kitchen and bathrooms, not a general benchmark.

The difference made it useful to compare both proposals against the layout and finish I wanted. A pleasant conversation with a supplier did not settle the choice. The drawings, scope, timing, and price all had to work together. A clear decision date also told each supplier when I needed information, instead of leaving the project open-ended.

Negotiation on a renovation begins before anyone lowers a number. It starts when you define the work, ask what is included, check materials against that agreement, and decide when you need an answer. If the person doing the work is reliable and the scope is clear, you can judge the offer on more than price alone. I discuss how I look for those relationships in my article on finding capable vendors through the work itself.

Derek Moneyberg
Derek Moneyberg

I’m an investor, entrepreneur, wealth coach, and host of The Derek Moneyberg Podcast.

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