your opinion on how a contractor gives you a quote.

[spikerS]

The question is as follows, and I will give you 2 different scenarios.

Scenario 1:
You hire a contractor to build a shed in your backyard. The contractor gives you a quote for $5000. Towards the end of the build, it is discovered that the weight of the shed is causing a nearby retaining wall to deform. To fix this, the Contractor says he will need another $1200 to fix the retaining wall, and stop this from re-occurring. This issue was not anticipated.

Scenario 2:
You hire a contractor to build a shed in your backyard. The Contractor gives you a quote for $7500, and mentions that it is high, but covers any unforeseen problems. Towards the end of the build, it is discovered that the weight of the shed is causing a nearby retaining wall to deform. The contractor fixes it, and stops it from re-occurring. This issue was not anticipated, but upon completion of the job, refunds $1300 back to you.

Which scenario would you prefer to see played out as someone hiring a contractor?

*edit, Baygirl says I need to be more clear in the question.*

Would you rather get quotes that cover unforeseen circumstances and knowing that upfront and receive money back, or would you rather get a quote that did not and pay for any additional expenses as they arise?

[GTS4tw]

Ive been a contractor most of life, even built some sheds! I suggest scenario 1 is much much better for the customer..... But 2 is a much better marketing and sales tactic and will result in better margins assuming that both contractors get the same number of jobs. As a contractor Scenario 2 will exclude you from most things that people get multiple bids for as you will seem way high.

The industry standard is Scenario 1. :dunno:

[egmilano]

Scenario 1 for sure. If Additional work need's to be completed he should bring it to your attention and invoice you..

[GTS4tw]

Originally posted by egmilano
Scenario 1 for sure. If Additional work need's to be completed he should bring it to your attention and invoice you..

Also gives you an opportunity to view the supplemental work and approve it rather than hearing about it after the fact.

[firebane]

Lets throw a wrench into your scenarios here.

For Scenario #1 is the contractor forcing you to pay for the additional fix or is he giving you to the choice of now or later? And if later would he give you a reduction in cost if you chose to use him for the fix?

[spikerS]

No wrenches. Scenarios are exact as above.the $7500 quote is given with the explanation that it covers unforeseen circumstances should they arise. if none show up, the $2500 is returned.

[Black Gts]

Hindsight being what it is I'd choose one. Of course should I ever need I'll post and you'll all point me to this thread lol.
Should add scenario 3 contractor 1 doesn't say shit and 2 years down the road who do you blame, yourself for not planning or shoddy workmanship? Of course that's yet another beyond thread lol

[GTS4tw]

Originally posted by spikerS
No wrenches. Scenarios are exact as above.the $7500 quote is given with the explanation that it covers unforeseen circumstances should they arise. if none show up, the $2500 is returned.

So in scenario 2 did he tell you beforehand then that the actual price was $5000 or just say it was "high"?

[Weapon_R]

I'd prefer to keep the money and pay later rather than give it to someone else and chase it after

[A790]

Scenario 1 for the same reason as Weapon_R.

[msommers]

Option #1 hands down. If problems come up, so be it, deal with it then. As a customer, I'm extremely skeptical of any contractor willing to give me money back at the end of the job.

[TomcoPDR]

I might be interpreting the scenarios wrong. But wouldn't scenario #2 just be "quote high within reasons; invoice a little lower after job is tallied" (like you worded it as "refund")... IMHO, I think if scenario #2 is worded as "quote high for unforeseeable, give customer heads up of worst case scenario higher price, do what's needed, INVOICE the work/product at completion; turns out to be lower than originally worst case quoted"

If that's the case... I think it's equally acceptable/perceived to me as a consumer.

[blitz]

I don't trust anyone until the job is complete, so I prefer to commit to as little money as possible upfront. I never actually believe that a contractor would refund me money if his cost come in low.

I'd also never pay 50% more for a simple job like a shed just for the possibility of "unforeseen problems".

[max_boost]

Originally posted by msommers
Option #1 hands down. If problems come up, so be it, deal with it then. As a customer, I'm extremely skeptical of any contractor willing to give me money back at the end of the job. :werd:

[spikerS]

ok, the masses have spoken, I guess I was doing things a bit backwards.

The way I would do it for example was quote the $7500 for the job. Get $2k up front, and start building, and then get doled out more as more supplies were needed. But my quote would be high, and I would tell them that, and that it was high in case something went completely sideways. if nothing did, then it was way under budget, but if something did happen, at least there was some extra funds budgeted.

I looked at it that if I had to go back and say that something happened that was not expected, and I needed more money than what was budgeted for, that is a strike against my skills and abilities. It has worked for me up until this point as even with my "higher" quotes, I am still cheaper.

I will look into changing how I do a quote.

[Amysicle]

.

[revelations]

For LARGE projects for RICH clients its way better to over quote than to constantly adjust the price up a little bit.

For small projects, best to not overestimate.

[danno]

So you don't actually give money back as you only take the $2000 up front? You quote for 7500, and it only costs 5000 total. So you receive another payment of 3000.

That's how I see it and that's how I do things for the most part. Except I typically take nothing up front, no one has screwed me yet. I do very few side jobs these days. I like the people to understand what is going on and that I'm not out to screw them, adding on a cost after I'm done seems shady.

[pheoxs]

I'd rather you break up the quote up to the actual expected estimate with a sub part as a contingency incase unexpected things arise and just make it a % of the job or something and explain that.

The thing about bidding high and then giving a refund is, you don't tell me how much it'll be. You could refund 100$ or 1500$ in your scenario