Wednesday, February 27, 2013

Contractor Ad On’s


Contractors often have complaints at the end of the project about additional costs that were charged during the project.   Here are some reasons why additional costs may incur:

·         The customer decides to change materials after project inception.  This may cause new materials to be torn out increasing cost and/or may trigger a restocking fee by the distributer.

·         The project scope increases.  The customer decides they want to add new things that were outside of the original scope.  Things that may seem small in material cost, may add a lot in labor costs.

·         Problems that were not known at the time of the inception of the project are found. For example, layers of asbestos tile are found under 3 layers of vinyl tile.

·         Unknown health and safety issues are found like poor wiring or significant code violations.

·         Housing inspections and permit inspections by local officials may create new unforeseen costs, like requiring smoke and carbon monoxide detectors in certain rooms.

·         The customer decides to go with something that requires custom products or custom work after the project begins.  For example with tile work, pricing can be directly related to the number of cuts required for special boarders, inlays or medallions.  Specialized products often require more labor and thus a price increase. 

To protect yourself from sticker shock, make sure that your contractor provides you with change orders outlining additions or changes that have been made throughout the project.  Take accountability for your part in the cost increase.  Contractors generally want to please the customer and will make the changes customers request.  Because changes cost the contractor time, materials, and labor they will pass these charges on the consumer.  Be savvy and make sure you ask how much the changes are going to cost and demand a revised bid.

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