TOP 5 REASONS FOR VARYING CONTRACTOR PRICING

The main reason why homeowners reject contractor proposals is because of price. No matter how emotionally invested homeowners are to their remodeling project, it comes down to the bottom line – cold hard cash. I’ve heard them say, “Even if you do deliver the high quality of work you guarantee, with the professional team that you promise, I’m going to the guy next door – he charges almost half as much as you do.” As an experienced contractor, I’ve long heard these kinds of reactions from homeowners looking to remodel – and want to help you, as a homeowner, understand the five main reasons why prices can vary from contractor to contractor for the same remodeling projects.

Total Cost | Hidden Cost

Plain and simple, most remodeling companies do not list full project costs up front. For example, if you’re remodeling your kitchen, a contractor is likely to list a price for installing the basics: cabinets, countertops, floors and appliances. But he or she may not list hidden fees such as updating your electrical wiring and panels to make sure all new appliances and fixtures work properly. This may or may not be done intentional, but a good contractor knows that once work begins, there can be additional work needed to complete the work safely and up to building standards. You want your contractor to be honest and upfront regarding any potential obstacles, and to keep an eye out for them during installation. To better understand the potential hidden costs within your project, here are some questions to ask your contractor before accepting a proposal: - Will they update electric to the current code and as per your new appliances specs? - Do they plan to repair/replace plumbing that could damage new appliances with leaks? - What quality type of underlayment do they plan to use for the floor? - Will they install new shut down valves for new water lines added? - Are they opening exterior walls to check for insulation? - Are they aware of any subfloor issues to prevent grout cracking in the near future?

Quality Control | Short Cuts

A bad contractor often comes with a good price. Contractors who slash prices don’t often care about quality of work they deliver or your family’s health and safety in the home. I would say that about 20% of our leads come from homeowners who had poor experiences with other contractors. One such client came to us after noticing mold on their bathroom ceiling and cracked grout in their kitchen only two months after a remodeling job from a competitor. Shortcuts can lead to major headaches down the road, and more expense, and this homeowner was left to deal with the mess due to poor craftsmanship and attention to detail. To help you avoid these kinds of contractors with little regard for homeowner satisfaction in the long run, be sure to read reviews from respected sites from their current and/or previous customers that point out red flags. As you can see, a simple contractor background check can save you loads of headaches and dollars in your remodel.

Size of company | Experience

As rudimentary as it sounds, check the size of contracting companies when comparing bids. A one-man shop typically does not have access to all resources that produce the highest quality remodeling job possible. While you might receive a lower bid for his work, you won’t have the security of working with licensed professionals with expertise in specific fields to deliver the most comprehensive remodel. Not all projects are created equal or need the same amount of attention, but if you’re looking for contractors equipped with experience, licenses, a full service team and customer service, look into their personnel, on staff and who they tend to sub out to. Here are some key components of the company to ensure an efficient and comfortable remodel: - Personnel: Architects, Designers, Project Managers, Master Plumbers, Master Electricians, Skilled Craftsman - A professional remodeling license from the state and city - Official copies of remodeling liability insurance - Official copies of memberships to professional remodeling associations - A portfolio of educational classes and trainings taken by the entire team to continually improve our standard and quality of work.

Availability

Additionally, in your search for a contractor, consider their schedule availability. A contractor who has wide-open availability is usually willing to take any job that’s offered to him and consequently, will give you a lower bid. While this might save you money, there’s usually a reason why this kind of contractor isn’t busy. He has little to no referrals and might deliver a low quality of work. A 2-6 week waiting period is normal. A good contractor will take the time to fully understand the project, create any reference drawings needed to clear up any confusion between the homeowner and the technicians before they begin demo.

Hitting the jackpot

And lastly, watch out for contractors who are out to build professional relationships with you only to up charge you for subsequent jobs. For example, I once knew homeowners who had hired a contractor to remodel their bathroom, and he did a job that they were quite pleased with. So when they asked that same contractor to remodel their kitchen as well, he thought he could go straight for the jackpot and up charged the bid $12,000 - $15,000 higher than other contractors. Thankfully, the homeowners did their research on other contractors’ prices and, as you can guess, formally ended their relationship with the wishful bidder.