For a straight BID/QUOTE, I eat the loss unless the client adds additional work, or there is something unforeseen that is outside of the scope of the bid. I overshoot the Bid most often is when more work is added, at which point I let them know what the additional charges will be (though they are usually aware of this, and have requested the additional work). For repeat customers I would not add additional charges, and have done this in the past, but I let them know I’m taking care of them.My first couple years I pretty much gave a quote and stuck to it for better, or usually-at least in the beginning-for worse. Since then I've gotten more accurate with most of my pricing, but I've also change to more of an estimating format. If a job goes quicker than I charge accordingly, for example charging $4000 for a $5000 estimate. By the same token I occasionally have to have the uncomfortable conversation of asking for more, say asking for $5k on a $4k estimate. If it's within a few hundred bucks one way or the other I usually just leave it as is. Just wondering do any of you guys do it like this? Or do you always stick to your set bid?
I know there are definitely remodeling GC's around here that do this, I've spoken to more than one homeowner about their remodel and they weren't sure what the final total was going to be.
I do ESTIMATES at T&M (not straight bids) for work with a lot of variables or where I’m just not certain, and itemize labor and materials estimates separately for clarity. On the rare instance that I’m way off (I know this about halfway through), I walk them through the reasons, and sometimes offer a new Estimate if needed.