Should you always go with the lowest price?

2008-09-21T22:02:00.000-07:00

Are you thinking , " Of course he doesn't want us to go with the lowest price, he wants us to go with the higher price so he can rip us of". Come on be honest.

These are the reasons to not always go with the lowest price.

1. For a contractor to be able to stay in business year after year he needs to figure in all his overhead and a reasonable company profit. If a company is only worrying about being the lowest bidder they will not have the finical stability to stay in business for a long period of time, meaning when you have a warranty issue they may not be around to make it right.

2.There are so many contractors out there that are not very good business men (or women) They don't quite know how to manage the work flow, they don't realize the importance of keeping your subs happy, they do not realize the stress the homeowner is going through having their house torn apart for long periods of time. They will sometime undercharge on a job just to stay busy, not realizing that at the end of the job they actually lost money. Once they realize they are losing money, if they are a good businessman they finish the job when and as promised and chuck it up to a learning lesson in bidding. If they are not so good they will cut corners or under deliver to minimize their loses.

3.They are not properly licensed and insured. Did you know that you could be given a fine in some states for knowingly hiring a unlicensed contractor. There are also hefty fines for those that will do the work unlicensed.

Lets face it though, we all love to get a good deal and save a little money. Right? But you are opened up to so much liability if you take this chance. If your contractor is uninsured and any of the crew working on your project get hurt it will go against your home owners insurance. you could also be sued. I am not saying this as a scare tactic. It is a fact.

Please do not this blog scare you. The main thing is to do your homework on any company doing work on your project. Ask for license and proof of insurance. Check there license against your state data base to verify it and also look for any outstanding complaints.

There are some very honest contractors out there, but to be honest and play by all the rules that keep them and you safe they incur more costs thus they have to charge accordingly, so do not let price be your determining factor when hiring a contractor

Mark

Hiring a contractor? What to ask them

2008-09-21T20:54:00.000-07:00

So you have a remodeling project that you want to have done?

Do you pick up the phone book, call three company's, go with the lowest price,and expect to get well taken care of?

Do you write them a check for thousands of dollars and say , see you next week?

There is a good chance that you could do this and come out just fine. But do you really want to make that type of a gamble?

There are many blogs out there that the contractors talk to each other, and there are sites that let the consumer talk to each other, but I have yet to see one that puts the two together. So I am starting one. This blog site will give you a chance to get an inside look of how things work one my end.

For finding a contractor here is a list of ways I would suggest you go about it.

1. Contact your local Chamber of Commerce for a reference. ( Contractors that get involved with the chamber are more likely to take their business more seriously )
2.Watch for work being done around your neighborhood. Stop by the house and talk to the homeowner or business about what kind of work the contractor is doing and how good of a job they are doing.
3.Talk to the local lumber stores ( not the Home Depot or Lowe's, these companies do not allow their employees to recommend anyone.) ask for a list of contractors that have been around awhile and are paying their bills on time.
4.You can check with your local building inspectors for the names of people they fill are honest ( they deal with the contractors enough to know which ones to avoid)
5.Attend the local home shows and talk to the company's that are there.

When you find some contractors to bid your project do not be afraid to ask to see some of their past projects and ask for a list of past customers to talk to.

Always get two are three bids so you will have an idea of the price range. NOTE: Please do not go and get 10 or 12 bids. Most contractors upon hearing you are getting that many bids will not call you back. You end up wasting alot of contractors time and it is not necessary. ( If you found your contractors the way I have listed three bids will be plenty.)

Let me know how things go.

Mark

Can you trust your contractor

Should you always go with the lowest price?

Hiring a contractor? What to ask them