A question we get a lot is “Why are estimates so all over the board in the construction industry?” It is difficult for customers to understand why bids for the same job, the same amount of work, and the same amount of materials can vary so greatly from one contractor in Augusta to the next. And we understand the confusion, and sometimes, the frustration. There are several reasons why a contractor’s pricing varies so much. And although we can’t speak for other companies, these are some of the reasons we see from our experience.
Contractor in Augusta Costs
It costs money to run a construction business if you do it on the up and up. Things like state-certification, proper license, and adequate insurance all add up. Some contractors attempt to avoid the fees by cutting corners. Therefore, they do things without pulling a permit or having the necessary insurance to cover both the homeowner and their workers to keep everyone safe, both monetarily and physically. So the first question you should ask yourself if an estimate is super low is if they are doing what is required in the industry and literally paying their dues. If they aren’t, any savings they are passing along to you is not a “deal”.
Construction materials, like any other goods, fluctuate with the market. For example, since the pandemic hit, the renovation industry has been experiencing a huge boom. That is excellent for contractors, but the downside is that with high demand, comes low supply, which equals inflationary costs. So the materials that might have been ready and available just six months ago are on backorder. That has driven the cost of materials sky-high. The same, job quoted a year ago, is going to be higher because the cost of materials has increased. Also, since some materials are flying off of the shelf, a contractor’s choice might be limited. Therefore, they might have to choose a higher-cost material, instead of what they normally would, out of pure necessity.
Contractor’s and Subcontractor’s Price
Contractors can set their own prices according to their experience and skill level. When they contract the work out to someone else, they have to accept paying whatever the agreement is between the two tradesmen. So when they estimate a job, they put in their labor costs. They then add the cost of the subcontractors if they have to hire people to do what they can’t. You calculate an estimate using the cost of materials plus the estimated number of man-hours that the job will take. So if one contractor’s rate of pay is more than another, naturally, their estimate will be higher. But usually, if a contractor’s rate is low, there is a reason why. And the reason is usually not good for the homeowner.
Experience Level of the Contractor in Augusta
It is never easy to look at a project and factor in everything from beginning to end. Things like dumpster rentals, timing and schedules are all very difficult to anticipate. A contractor with experience in the industry can look at a renovation project and tell you more accurately its cost than someone new to the industry. The main reason is that contractors with experience know that when you start moving things around and open up walls, you are bound to run into hiccups. And to encounter things you couldn’t see from the outside.
All of those little things can begin to really add up. Often, an inexperienced contractor will estimate one price, and then if they find things that require extra work, they will add more cost to the project. An experienced contractor will know that there will inevitably be expenses that can’t be foreseen and will accommodate accordingly. So what might look like more from the initial estimate could end up costing less if the contractor turns to you every time there is a glitch in the project for more money.
It is never easy to come into a renovation or building situation and know exactly what things are going to cost, hence why it is called an “estimate”. At Clean ’n Brite, we have enough experience in the industry to know what a quality job will cost. We will probably not be the cheapest estimate, but we guarantee that it will be done right and that we won’t come back to you nickel and dimming you for every hurdle along the way. Contact us today and let us have a look at what you dream of building today.