Homeowners Seeking Cheap Quotes For Services Is Often Bad Economics

Many are persuaded to have work done by a bidder who 'knocks the bottom' out of everyone's price. We've had clients who used us exclusively for years, then suddenly sought out their golf buddies yard guy 'who also does some repairs' to get work performed at a discount; only to call us to repair the mess the cheap guy made. People fail to consider how another company (in loose reference) can be so cheap, The lure of a 'whopping discount' overshadows their risk of exposure.

If Someone Can Do It To A Church They Will Do It To You.

Where I attended church several years ago a couple requested the use of our sanctuary for their daughters wedding whom had never stepped foot in the church before. Our pastor decided to grant their request. A freelance part-time wedding coordinator was employed by the family, whom tripped on her own extension cord and sought civil damages against the church to the tune of $60,000 and was awarded. Many large employers have people feigning injuries everyday,and for one to think it can't happen to them is soon faced with this reality. Unlike the big corporations who have loss prevention departments and corporate law firms protecting their interest, a home or business can stand to have their lives ruined when someone they trusted to do a job cheap takes a fall, or even feigns one.

Imagine the nightmare of the homeowner who once hired a freelancer to top out an eighty foot tree. The poor guy's chainsaw came in contact with the rope and he fell to his death. He left his parents and a small child behind. How that homeowner must have felt when he realized the liability he was now exposed to. Our company has fallen victim to false injury claims .One guy was in a bar brawl and claimed his injuries were work related, had he not signed a waiver refusing medical treatment from an E.M.T. we would have defend the case at a high cost, as well as increased insurance premiums. Don't trust homeowners insurance to cover injuries to someone performing services for you, read your policy.The crux of our advise to home and business owners looking to hire someone to perform a remodel, repair or any other service where bids or quotes are solicited are as follows....

If the low bidder is more than 10% less than the one above them find out why, are they insured? Are they licensed? Did they miss something? Are they going to request a 'down payment' and disappear? etc.

How long have they been in business? Can they prove it with documentation from prior years, such as business/contractors licenses and references ?

Can they provide qualified references that you can look at, not just call? You could be getting a good reference from their friend at the bar on the phone.

Can their liability insurance provide you with a hard copy of their certificate of property liability and Workman's compensation? Never accept a certificate directly from the person whom you are negotiating services, as these forms may be fraudulent; and never take their word that they are insured.

keep in mind that a person realizing he did not have enough money in the job, will come to you demanding more money to finish; and they will have the leverage of knowing that most legitimate companies will not easily assume a job that has been started by others.

Permits are always required inside city limits for any construction where new concrete,plumbing, electrical,or framing are to be installed. Is you perspective contractor Licensed to pull the needed permit? Will he unlawfully use another unscrupulous contractors License # to pull a permit he's not qualified to pull himself? It happens more than you think.

If the perspective contractors 'great price' causes you to throw caution to the wind, allowing them to perform the work without concern for following codes ,beware that you may be held liable and ordered to tear down a structure or bring it up to codes.

When the person you hire has been paid by you and he fails to pay his workers, Building Materials Suppliers, Paint Stores, Floor Coverings Suppliers or anyone else who had goods or services provided; You may be held liable for paying those outstanding debts even though you've already paid the person you hired.

When you pay a contractor who is not recognized by the I.R.S.as a business with a valid Federal tax identification number,they are considered as your employee,and if you didn't with hold F.I.C.A. and Medicaid tax, you may be held liable if they are audited and you will pay their tax with penalties and interest.

A good rule of thumb when considering your prices from prospective service providers is to consider the bids who are in the middle of the price scale, and if the high bidder is no more than 15-20% higher don't count them out. Contact references and Suppliers they deal with in their respective industries and get a feel on how respected they are to their peers.You may find the high bidder to be the one who will go the extra mile; to keep the work area clean, fix something he doesn't charge you for, and use premium materials. Sometimes a few hundred dollars would have been well worth the added care he would have taken to pamper you. You could be pleasantly suprised. Employers of hundreds of workers will attest that people paid their worth are most likely to look after the interest of the company. It's the same principle with anyone you hire to perform a service for you.

I could write volumes of horror stories while imploring consumers to beware of a price that's too good to be true, but if whats already been said doesn't encourage due diligence, more reasons certainly wont help. Most people posses an ample degree of judgment; but it can be short circuited by con-artist highly skilled in the art of exploiting the average humans propensity for greed. As for those clients I refered to at the beginning who sought the fly-by- night great deal, they were mostly multi-millionaires who spend in one night in Vegas what we charge them for a job that runs two weeks; and they always end up paying double for us to come and fix the disaster made by the cheap guy. As the saying goes...... 'Penny smart and pound foolish'

Please use common sense when accepting quotes to have work done.The extra money your paying to the legitimate company is for real overhead on equipment, liability insurance and taxes the cheap guy doesn't have to factor. You'll also have peace of mind knowing your money is spent for the experience and professional know-how needed to perform a quality job. When price is cut rate in relation to the prevailing average, corners will be cut and you will have perfectly good materials improperly installed voiding all warranties and costing you much more than the difference in the incredibly low bidder and the fair bidder. Until next time.....

Regards

www.tandcservicesltd.com