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re: Contractor won't give me an estimate
Posted on 9/1/16 at 2:53 pm to tgrbaitn08
Posted on 9/1/16 at 2:53 pm to tgrbaitn08
quote:
I ask people everyday, "Whats your budget"? Some will answwer some wont...
I understand that...but I doubt my company does this. I know we would like to not bid on some work simply because we know we won't get it but in most instances the company asking us to bid has probably already done an in house estimate that will be close or in line with ours...at least I would think so.
0
Posted on 9/1/16 at 2:56 pm to Festus
quote:
But the prices allowed are set by the government.
False, most of these estimates are written in Xactimate estimating software. It is not the government setting the price. It is true that prices are updated monthly, but Xacimate will push out updates faster if the price is rising.
ETA: Xactimate gets its pricing from a number of sources including direct from contractors and supply stores.
This post was edited on 9/1/16 at 3:00 pm
Posted on 9/1/16 at 2:59 pm to Meauxjeaux
quote:
What's the budget for this project?" is one of the most common questions in contract negotiation there is.
Yeah there's no way I would ever tell a contractor that. If I don't like his price I am going with someone else. There's no scenario in which the budget for the job will determine how much he charges. The work, not my bank account, determines his fee. Which kind of gets back to the point about the adjustor and the contractor. The adjustor should answer to the homeowner, not the contractor doing work.
Posted on 9/1/16 at 3:00 pm to wickowick
quote:
It is true that prices are updated monthly, but Xacimate will push out updates faster if the price is rising.
We usually use RS Means to give ball park prices.
Posted on 9/1/16 at 3:00 pm to Festus
quote:
So before they start, contractors have no idea what amount is going to be allowed.
Why do they need to know? Homeowners need to know, obviously, but the contractor needs to know the scope and should bid accordingly. If the bid comes in high and all the other bids come in high, then eventually the system will take the higher labor or supplies into account.
I just fail to see any practical reason the contractor SHOULD know what the FEMA grant for the scope is going to be. The chances of the bid from the contractor coming in LOWER than FEMA is incredibly low, but if he does, so be it. If contractors are setting their prices based on the most the government will pay, taxpayers are being taken to the woodshed.
Posted on 9/1/16 at 3:02 pm to slackster
quote:
Homeowners need to know, obviously, but the contractor needs to know the scope and should bid accordingly.
This is why ever homeowner should have stamped drawings drawn up to be absolutely clear on this point. If nothing else for quality control and code compliance.
Posted on 9/1/16 at 3:02 pm to Meauxjeaux
quote:
A contractor has a duty in this environment, to himself, his company, his employees, his funders, etc, to discern what the market is willing to pay for the value he's bringing and charge accordingly.
And discern it he should, but he doesn't need to know what the FEMA will pay.
Posted on 9/1/16 at 3:03 pm to slackster
quote:
know what the FEMA grant
Why do you keep using this term?
Posted on 9/1/16 at 3:05 pm to NYNolaguy1
quote:
There's no scenario in which the budget for the job will determine how much he charges. The work, not my bank account, determines his fee.
This. All of this. The argument that it is some sort of standard practice doesn't mean it is the proper way to do it.
Posted on 9/1/16 at 3:05 pm to slackster
quote:
If contractors are setting their prices based on the most the government will pay, taxpayers are being taken to the woodshed.
Your're confusing this with government contracts. Ask anyone with a flood claim, that has received their estimate, if they are being allowed higher or lower numbers? The amounts I've seen are ridiculously low. And I know several people that can't find any contractors that will get close to doing the job for the amount being allowed by NFIP.
Posted on 9/1/16 at 3:08 pm to Festus
quote:
Your're confusing this with government contracts. Ask anyone with a flood claim, that has received their estimate, if they are being allowed higher or lower numbers? The amounts I've seen are ridiculously low. And I know several people that can't find any contractors that will get close to doing the job for the amount being allowed by NFIP.
It will take several months for the prices to stabilize, until that happens everyone will be dealing with increasing construction cost.
Posted on 9/1/16 at 3:09 pm to wickowick
quote:
Why do you keep using this term?
Because FEMA uses that term for housing assistance.
Posted on 9/1/16 at 3:10 pm to wickowick
quote:
It will take several months for the prices to stabilize, until that happens everyone will be dealing with increasing construction cost.
I agree, but the problem with that is that homeowners are getting their contractor bills for the demo, and they are much higher than what is allowed in the estimate.
Posted on 9/1/16 at 3:11 pm to Festus
quote:
Ask anyone with a flood claim, that has received their estimate, if they are being allowed higher or lower numbers? The amounts I've seen are ridiculously low. And I know several people that can't find any contractors that will get close to doing the job for the amount being allowed by NFIP.
I would expect as much, which is once again why I've got no clue why the contractor wants to know how much FEMA is paying so he doesn't "leave money on the table."
It makes absolutely no sense in the context of this conversation.
Posted on 9/1/16 at 3:12 pm to slackster
quote:
I've got no clue why the contractor wants to know how much FEMA is paying so he doesn't "leave money on the table."
Oh, I didn't pay attention to the "leave money on the table". If that's what he's doing, he's a shitty contractor.
Posted on 9/1/16 at 3:13 pm to sleepytime
It's a shame the way these deals happen.
Most contractors will charge more if they know insurance covers it.
Most want their money up front too.
Most contractors will charge more if they know insurance covers it.
Most want their money up front too.
Posted on 9/1/16 at 3:14 pm to Festus
quote:
Oh, I didn't pay attention to the "leave money on the table". If that's what he's doing, he's a shitty contractor.
Yeah I mean I understand he needs to see the scope of work, of course, but how much money FEMA is paying is irrelevant to him. The homeowner is probably very interested in what FEMA will pay, but it shouldn't matter to the contractor. You know your rates in this market, so work them into the bid with the particular scope. Let the prices fall where they may.
Posted on 9/1/16 at 3:19 pm to slackster
quote:
Because FEMA uses that term for housing assistance.
There is no housing assistance with flood insurance, you are mixing terms. We are talking about flood insurance and flood insurance only.
Posted on 9/1/16 at 3:20 pm to slackster
I've seen a claim for a friend, family and friends gutted 90% of house, 100% of all flooring taken out, and maybe 25% of the sheetrock was completed. All by friends and volunteers. They hire contractor to finish gutting and cutting out sheetrock. Contractor sends a bill to them for everything. Just took total number of SF in house and multiplied by amounts. And wants payment for it all, not just percent that they completed.
I don't even think they are paying attention to what's being done, or what they are billing.
I disagree with you here. On a normal homeowner's claim, yes. But market rates have been thrown out the door as far as I can tell.
I don't even think they are paying attention to what's being done, or what they are billing.
quote:
The homeowner is probably very interested in what FEMA will pay, but it shouldn't matter to the contractor. You know your rates in this market, so work them into the bid with the particular scope. Let the prices fall where they may.
I disagree with you here. On a normal homeowner's claim, yes. But market rates have been thrown out the door as far as I can tell.
Posted on 9/1/16 at 3:26 pm to wickowick
The OP specifically said the contractor wants to know how much FEMA will be paying before they submit a bid.
However, if it is for traditional flood insurance, it is highly likely it is being done through the NFIP which is at high-risk of default according to the GAO. That default would fall on the shoulders of taxpayers, but even if it was a completely private entity, it doesn't change whether or not the contractor has any reason to see the reimbursement rates from the claim.
However, if it is for traditional flood insurance, it is highly likely it is being done through the NFIP which is at high-risk of default according to the GAO. That default would fall on the shoulders of taxpayers, but even if it was a completely private entity, it doesn't change whether or not the contractor has any reason to see the reimbursement rates from the claim.
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