The construction industry is one of the only industries with very low
barriers to enter. Due to the overwhelming numbers of contractors in the
industry, it can be difficult to separate out the contractors who
provide quality service. Typically there are more non-professionals than
professionals in this industry. Thus causing a wide variance in bid
prices.
The common practice for a homeowner is to ask one or more
(usually 3) contractors for bids on a project “Some people think the
more quotes they get, the cheaper the job will be- and they’re right,
they’ll get cheaper, because someone will do it cheaper”. Homeowners
fixated on low price overlook elements essential to a job done right, on
time, and on budget. Homeowners who select contractors based on price
alone have the process wrong and reversed.
Homeowners should follow this process:
- Educate yourself. Go to manufacturer’s websites, contact
manufacturers, and/or visit local
distributors of supplies and materials. Knowing the right types of
questions will let you know if the
contractor is on the level.
- Choose a contractor or contractors for bids. (always personally
meet the contractor, NEVER
higher a contractor you don’t meet with)
- Receive bids and thoroughly examine the details. Make sure your
getting the best.
- Meet with contractor again to iron out any details and answer
any questions. Once again asking
the contractor the right types of questions will let you know if the
contractor is on the level.
- Choose the correct contractor for the job.
Here is a thought to keep in mind when choosing a contractor.
Companies that lower their prices are ignoring simple business
sense; cost of material, labor cost, insurance and the GROWTH of
their companies. Low bidding companies put their own operations AND
you at risk, operating at the edge of bankruptcy. They are playing
Russian roulette with your investment. These companies are here
today and gone tomorrow. Is that the type of investment you want?
It is important to look at price when dealing with contractors on
your home. If you receive a bid that is lower than the others,
question it. It is your investment on the line not theirs.
