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Started By
Message
Why is the Home remodeling industry saturated with shady people?
Posted on 3/11/16 at 9:36 am
Posted on 3/11/16 at 9:36 am
I've been having issues(foundation, plumbing,electricity, and overall gut) with remodeling a home I bought(knowing the issues) and I've been hearing countless stories of unreliability, terrible workmanship, scams, and over-charging people. I've experienced these same issues, like a company wanting to charge me $7,000 for a foundation job that was only $1,400 to do ($800 in materials, and two guys in 1 day of work). Contractor quoted me $45,000 for a kitchen that I'm putting together for $15,000(through being my own contractor and filtering through a bunch of other scam artists). $2,500 for changing out a water heater, I did it myself for $500.....$2000 for an hour of his time?
Why does this industry have more than other industries? Does it have something to do with blue collar people and integrity/ethics? These people are really the scum of the Earth, and I hope they live in flood zones.
Why does this industry have more than other industries? Does it have something to do with blue collar people and integrity/ethics? These people are really the scum of the Earth, and I hope they live in flood zones.
This post was edited on 3/11/16 at 9:42 am
Posted on 3/11/16 at 9:38 am to Kujo
Because they know people are stupid enough to pay those prices.
Posted on 3/11/16 at 9:41 am to Kujo
Because they know you have to have them.
Posted on 3/11/16 at 9:44 am to Kujo
Don't get me wrong there are some excellent contractors and subs out there- but for the most part many of these people are money hungry idiots. Hence why they are self employed "contractors" and don't work for a reliable company.
Posted on 3/11/16 at 9:46 am to Kujo
quote:
Why does this industry have more than other industries?
There are reputable contractors out there but the problem is that most homeowners go cheap as possible and hire people without the proper licensing and insurance. Someone that has those things has to charge more to cover the cost of carrying them and they usually will do a good job because they don't want to lose their insurance or license over a claim. The contractor board revokes licenses and imposes fines on people every month.
Some homeowners also have wine taste on beer budgets and almost always try to get more than they were quoted and get pissy when the contract is fulfilled exactly as bid.
In short, it's like every other industry and you're ignorant to say that it's "full" of shady people. The same as saying all lawyers are scum.
This post was edited on 3/11/16 at 9:52 am
Posted on 3/11/16 at 9:47 am to Kujo
I have a father in law who does construction/remodeling projects and sometimes people will screw him and not pay him full(he does good work,honest etc)
Posted on 3/11/16 at 9:47 am to Kujo
Working on selling an old house. I needed to get 3 junction boxes installed in the attic over some exposed wire connections.
Got a quote for $675 ( )
- Evaluate wiring system for code violations $75
- A $150 charge to correct violations at splices
- 3 separate $150 charges per junction box
So they quoted me a $150 charge to fix the splices... then quoted $150 per splice.
Ended up getting B&D Electric to do it... they charged me $120 TOTAL
Got a quote for $675 ( )
- Evaluate wiring system for code violations $75
- A $150 charge to correct violations at splices
- 3 separate $150 charges per junction box
So they quoted me a $150 charge to fix the splices... then quoted $150 per splice.
Ended up getting B&D Electric to do it... they charged me $120 TOTAL
This post was edited on 3/11/16 at 9:53 am
Posted on 3/11/16 at 9:52 am to terd ferguson
quote:
Got a quote for $675 ( )
- Evaluate wiring system for code violations $75
- A $150 charge to correct violations at splices
- 3 separate $150 charges per junction box
So they quoted me a $150 charge to fix the splices... then quoted $150 per splice.
Ended up getting B&D Electric to do it... they charged me $120
it's like they feed off insurance like Doctors....take your blood pressure, $500.
Posted on 3/11/16 at 9:54 am to stout
quote:
There are reputable contractors out there but the problem is that most homeowners go cheap as possible and hire people without the proper licensing and insurance. Someone that has those things has to charge more to cover the cost of carrying them and they usually will do a good job because they don't want to lose their insurance or license over a claim. The contractor board revokes licenses and imposes fines on people every month.
Some homeowners also have wine taste on beer budgets and almost always try to get more than they were quoted and get pissy when the contract is fulfilled exactly as bid.
In short, it's like every other industry and you're ignorant to say that it's "full" of shady people. The same as saying all lawyers are scum
This along with there being an extremely low barriers of entry for new companies. A dude with his tools and some paper can be a "contractor" when the owner doesn't know how to buy these services.
Posted on 3/11/16 at 9:55 am to Kujo
quote:
Contractor quoted me $45,000 for a kitchen that I'm putting together for $15,000(through being my own contractor and filtering through a bunch of other scam artists). $2,500 for changing out a water heater, I did it myself for $500.....$2000 for an hour of his time?
FYI, when a contractor feels the owner is going to be a PITA to deal with they bid it very high because they don't really want the job but will take it for obscene money and put up with the PITA owner. I do it a lot.
Posted on 3/11/16 at 9:57 am to jamboybarry
quote:
there being an extremely low barriers of entry for new companies. A dude with his tools and some paper can be a "contractor"
The contractor board has been making an effort to curb this. You have to be licensed and insured for any job over $15K now. Used to be $50k. They are also adding new classifications and if you work outside of your classification you can be fined no matter if it's under the $15K or not.
The issue is the general public doesn't know any of this or take the time to fo the contractor board website and make sure they are dealing with someone licensed for the full scope of work.
Posted on 3/11/16 at 9:57 am to stout
quote:
$2,500 for changing out a water heater, I did it myself for $500
They have to pay for their $1000/mt truck note and $500/mt rent. Their wife may have lost her job at the Dollar General in Watson, hard times out there for some folk.
Posted on 3/11/16 at 9:58 am to stout
quote:
proper licensing and insurance. Someone that has those things has to charge more to cover the cost of carrying them
quote:
The typical contractor's GL Insurance costs $380 to $1,380.
Average Premiums, Deductibles and Limits on General Liability Insurance Policies for General Contractors
Name USD
Median policy premium:
$380 - $1,380
every single job has to be marked up for the full cost per month?
Posted on 3/11/16 at 9:59 am to ellishughtiger
quote:
They have to pay for their $1000/mt truck note and $500/mt rent. Their wife may have lost her job at the Dollar General in Watson, hard times out there for some folk.
Plumbers probably make more than you FWIW and his wife does need to work. Especially new construction plumbers. Those guys can make enough money to make directional drillers jealous.
That guy was probably also a member of the plumbers union though and they have to get their cut off of each job he does. Which is dumb on his part. No need to be union if you work independently though some are.
This post was edited on 3/11/16 at 10:04 am
Posted on 3/11/16 at 10:02 am to Kujo
I wish my GL was just $1380
There's also workman's comp, payroll tax, E&O, opportunity cost to consider, etc
Just like any other business in regards to having expenses but you seem to fit into the mold of thinking a contractor should work for 10% above cost on a $500 job.
There's also workman's comp, payroll tax, E&O, opportunity cost to consider, etc
Just like any other business in regards to having expenses but you seem to fit into the mold of thinking a contractor should work for 10% above cost on a $500 job.
This post was edited on 3/11/16 at 10:03 am
Posted on 3/11/16 at 10:04 am to Kujo
So you value your time at $0?
Having read your posts, I agree.
I don't think you understand how business works, at all.
Insurance, taxes, travel expenses; you don't have any of that acting as your own contractor. Not to mention the countless hours you spend wading through the deadbeats...
Good luck on your project.
Having read your posts, I agree.
I don't think you understand how business works, at all.
Insurance, taxes, travel expenses; you don't have any of that acting as your own contractor. Not to mention the countless hours you spend wading through the deadbeats...
Good luck on your project.
Posted on 3/11/16 at 10:06 am to Kujo
I don't see it as being different from any other profession. There are a lot of dentists who are scum. I was one of the few honest dentists I knew. No different than car salesmen or mechanics for that matter.
Posted on 3/11/16 at 10:08 am to stout
quote:
Especially new construction plumbers.
This would be my choice if I had to pick a trade.
I'm not precise enough to be a finish carpenter.
"Just caulk that up."
Posted on 3/11/16 at 10:10 am to stout
quote:
FYI, when a contractor feels the owner is going to be a PITA to deal with they bid it very high because they don't really want the job but will take it for obscene money and put up with the PITA owner. I do it a lot.
most of the time Stout just posts a bunch of garbage but he's hitting the nail on the head here
contractors do this in just about every industry and it's perfectly justifiable, i'm in the EPC biz and this type of bid is very common
Posted on 3/11/16 at 10:12 am to TexasTiger34
quote:
most of the time Stout just posts a bunch of garbage
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