Residential Contractor Series – Going for Value

Oct 28, 2009

THE LOWEST PRICE MAY BE CAUSE FOR CONCERN – A contractor will calculate all the costs of doing business with you, want to establish a fair cost, and also want a profit for their hard work. The bids should be based on similar services with little price fluctuations. The bigger companies can establish price breaks through volume purchasing and will pass the savings on to you.

On the same project, there may be some fluctuation in costs from different contractors. The good ones have figured in all the costs that may include everything from insurance, to debris removal, to labor, and to other costs that you may not be aware of until you are reassured by the contractor that these costs are covered. You may find out later that you are required to cover the costs of permits, for instance. A reputable company will lay out all the costs so that you are paying one person and you can breathe easier that the contractor is handling the job safely and legally.

A red flag should go up when you are getting estimates and one company is thousands of dollars lower than the others. You may be giving up one of the three elements of a project: Price, Quality, or Service. With a low figure, you may be sacrificing quality or service if there is a problem with the workmanship down the road.

They may be leaving out important elements of a remodeling project such as bonding or insurance. For instance, if they don’t have workman’s compensation insurance and a worker falls on your property you may be one the sued for his broken leg, or worse.

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