Anytime you decide to remodel a part of your home or build something new, you must prepare to hear a contractor quote a massive price for the work. While you obviously want to support your local businesses, you must have wondered – why does contracting work cost so much?
There are many different reasons why your contractors can quote you the price they do. This can come down to the number of available projects, the particulars of the project you are carrying out, the kind of team they have, and their discretion and view of you.
It is normal to feel overwhelmed when your contractor is quoting you a huge price, but it is important to understand what may have gone into the quote before you get angry. In this article, we will look at why contracting work can be so costly.
Why Does Contracting Work Cost So Much?
You’ve finally decided it is time to remodel a part of your house, and you have a huge project planned out. When you reach out to a contractor to carry out your dream plans, one issue stands in the way – the huge cost. Why does this happen? Why is hiring a contractor so expensive?
The Number Of Projects At Play
The projects your contractor currently engages in will greatly impact the price they quote you. Consider a contractor going through a relatively slow time in terms of the projects they are getting.
In that case, they will be willing to take on jobs even when they’re not as profitable because they need to keep up with overhead costs and ensure their team has work to do.
In the other case, consider a contractor getting more jobs than ever. For them, the project you offer is an added benefit but not a necessity.
They will need to stretch themselves out more to complete your project so that they will charge a more hefty profit as an incentive. The price is up for you to take or leave, and you will probably not be able to negotiate it down any further.
What is the better choice here? The answer depends on several things. If the busy contractor is someone who you know can deliver but at a higher price, they could be a good choice. After all, the contractor with no jobs has less to show for their work.
However, contractors who are busy will be able to spend less time on your project, which may lead to inadequate or underwhelming work.
Their Assessment Of Your Project
When you come up with a plan for remodeling your home, you have an idea of the expected costs. Let’s say you want to upscale your kitchen. When you let a contractor know this is what you want to be done, you have a clear picture in your mind.
The contractor will attach their own understanding of what that project requires. For example, in terms of kitchen cabinets, they may consider that you need a specific kind of wood that is pricier than what you expect.
On the other hand, another contractor might assume you want to use the cheapest materials that will get the job done. Neither of those assumptions may be what you want to do with your kitchen cabinets.
This is why it is essential for you to have clear communication with your contractor. Come up with a clear written description of the scope of the project and the costs associated with each material, and have an honest conversation about what their quote includes.
This will allow you to be clear and for the contractor to communicate what they can do within their quote.
The Kind Of Team They Have
Contractors rarely work alone and often either work in a team with their own crew or a group of other subcontractors they hire to complete the project for you. Therefore, they have to account for the quote each subcontractor offers to complete their part of the project, which will, of course, consider their own profit margins for the job they complete.
When you hire a contractor, it is important to know whether you are hiring a team, or a group of other subcontractors, as this will make a difference to your overall cost. The former option, which would be a team under the main contractor, is often cheaper.
However, this does not always mean that it is the best option for the project that you have in mind. For example, if you are fixing up your kitchen, you need the right people with the experience, knowledge, tools, and resources to complete the job.
If the contractor’s team is not qualified, you can end up with a mess. While subcontractors are the costlier option, they will ensure that everyone has the right skills to complete the work they’re doing, but make sure to do your research, so you are certain who is right for what part of the project.
What They Think Of You
Just like you, your contractors are just human, and their assessment of you factors into the quote they give you. After all, you will likely judge the contractor based on their appearance and how they interact with you, and they will do the same.
The assessment of you is based on how well you will work with them as a client. For example, they may wonder if you have a clear idea of what you want or if you are constantly changing your mind.
Or whether or not you have the right idea about the time and cost it will take to complete the project. And even the house you live in factors into this. If you signal that you can afford an expensive project, you will likely be quoted a higher price.
At the end of the day, it is important to understand that contractors are running a business. They have their own costs and margins to account for, and their assessment of you and your project plays into their quote.
However, communication is key in getting a fair quote and ensuring your project turns out how you want it to be. So ensure clear communication and research who is the right fit for your project.