A narrative-type (generic) bid/work proposal will make you aware of what's going to be done, often in general
terms, and a sum total of the cost of the renovation project. This type of bid is a good starting point.
It's especially helpful when you're trying to narrow your choice of contractors. A comprehensive bid/work proposal on
the other hand gives you the detail of all materials, where those materials are made use of in the project, and it provides
a break-down of the cost of labor.
Of the two bids - narrative or detailed - which do you think you should expect and which
do you think the FHA and your 203k lender will base the loan upon?
If your answer was the detailed bid you're
right. That's not to say that a narrative bid is worthless. The narrative bid serves a useful purpose. But
if you really want clarity as well as a true picture of what going to be done and how much each element of the project will
cost you, the detailed accounting can't be beat. And, don't forget, the FHA and you're lender required it.
To the left is an example of a Streamline K bid/work proposal. Work proposals for the Streamline K generally
require more detail than the more substantial Standard 203k. That may not appear logical at first. But more closely
comparing the differences in the Standard 203k and Streamline K will help.
At the risk of over-simplifying the differences
between the two Ks, the Standard 203K always calls for a Work Write-up from a 203K Fee Consultant .
