When owners compare their contractor’s bid with the carrier’s estimate, they usually look at quantities: how many squares, how much drywall. Two other items can matter as much and are easy to miss.
Overhead and profit
General contractors charge for coordinating trades, supervising the job, insurance, permits and running a business. In estimating software this is often shown as overhead and profit, commonly 10% and 10%. Carriers sometimes leave it out, arguing a general contractor is not needed.
On a job that involves roofing, drywall, painting, flooring and electrical work, it is hard to argue no one needs to coordinate the trades. Whether O&P is owed depends on the policy and the complexity of the job, but its absence on a multi-trade claim deserves a question.
Price lists
Estimating programs price line items using regional price lists that are updated over time. An estimate written months ago, or with the wrong region selected, may use outdated or mismatched costs. After a large storm, demand for roofers and materials can push real prices up faster than the lists change.
Check the price list code and date printed on the estimate. Compare a few major line items, such as tile per square or drywall per square foot, against current local bids.
Sales tax and permits
Arizona’s transaction privilege tax and local rates apply to materials and, depending on how a contract is structured, to contracting. Permits are required for many roof and structural repairs. Both are easy to omit and legitimate to include.
A line-by-line estimate review catches these issues before you decide whether appraisal is worth it.