Risk Report

Quantifies your financial risk to cost overruns

 

Traditional Problem: In many renovations, homeowners are in the dark when it comes to analyzing bids, architects find it a challenge to design to budgets, and contractors, aware that the key driver for homeowners is price, may underestimate how much projects cost. This can result in delays, cost overruns, and expensive re-designs that the owner only becomes aware of once construction is underway.

Bolster Solution: Bolster's Risk Report quantifies the owner's financial exposure to cost overruns and contractor failure when hiring a typical contractor, a Bolster Contractor and a Bolster Contractor backed by the Bolster Financial Guarantee. The report reveals the likely final cost of their renovation in each scenario and empowers them to make an informed decision about which contractor to hire.

 

Rooftop Reno, Battery Park City

Jason's Problem: Jason and his architect were receiving bids for a high-end rooftop terrace renovation in Battery Park City. One of the contractors had worked in the Jason’s building for the past decade and was the preferred option until Bolster Contractor Aaron Borenstein provided a more detailed bid that was 21% higher. Given the scientific and transparent nature of Bolster's Pricing Process, Jason was inclined to trust Aaron's bid but didn't know for sure which bid to choose.

Bolster's Solution: Generated alongside Aaron's Final Build Proposal, was a Risk Report that quantified the different levels of financial risk Jason was exposed to when hiring his initially preferred contractor versus hiring a Bolster Contractor like Aaron.

It was revealed for example that his building's contractor were claiming they could deliver the project 2.17 times faster than Aaron while using only 17% of the resources - clearly important information was missing.

Bolster's data-driven report also revealed that at the price it presented in its bid--the competing contractor would have likely required about 142 days to deliver, not the 30 it forecast. In fact, at the low price, high speed, and minimal human resources they forecast, the competing contractor was putting themselves at risk for bankruptcy and in turn exposing Jason to financial risk.

To test the veracity of the competing contractor's bid further, Jason asked them to provide the same financial guarantee as Bolster, but they were unwilling to do so. 

On the surface, a cheaper bid sounds appealing, but after thorough consideration of his Project Risk Report, Jason opted for Bolster. He made this decision because Aaron's bid presented the project ceiling and offered a financial guarantee to ensure that he wouldn't be exposed to cost overruns.

Cost: FREE with Final Build Proposal