Yeah, Home Renovations are Expensive
There's been a discussion on an email group in my neighborhood about hiring a contractor to replace windows and sliding glass doors. One neighbor, "Chu", asked for recommendations. A few businesses were suggested, including one that my spouse and I hired years ago for some window repairs. We didn't give this recommendation, though we do consider the contractor an knowledgeable and fair professional. Many people in our neighborhood have hired them for window repairs, as they've been in business in our community for decades.
Chu wrote back to the group that the contractor had come through with a $33k bid that she thought was too high. Moreover, they didn't itemize the cost proposal to identify specific materials and units of labor. At first the amount of $33k struck me as large, too- our bill for window repairs years ago was more like $1,000- but then I saw Chu's description of the work she wants done. She's asking for 13 windows and 2 sliding glass doors to be replaced. ...Not just repaired, like fixing a pane of glass (which is what we did year ago) but replacing the whole window/door 15x.
A few of our neighbors pointed out that, yes, this project will be costly. The contractor has to cut into the exterior wall in numerous places, remove the old windows/doors, set the new casements in, then not only patch them up to the interior walls but seal them to the exterior, redoing the stucco and exterior paint.
Chu is upset that the contractor didn't provide a price breakdown and hasn't responded to her request to provide one.
I gotta say at this point, I understand where the contractor is coming from in kind of ghosting her request. For one, quotes can take time to prepare. I know in my company, there's a process around it. And when a prospective customer starts requesting multiple quotes, it triggers concern that the customer is aggressively looking for ways to argue for discounts and/or shrink the size of their order but still get the favorably unit pricing entailed in a bigger order.
Also, in any business situation, you've got to understand the market dynamic. Are the vendors hurting for work, or are they all booked up? If the vendors have staff idling for lack of work, they'll respond quickly to inquiries (they're not busy with other projects!) and they'll lead with discounts or offer them quickly to secure a deal. OTOH, when there's more demand than supply, the vendors hold the cards. They don't need to return calls lickedy-split. They don't need to write multiple quotes for choosy buyers or entertain bargain-seekers.
I believe that right now, in terms of home renovations contracting, we are facing an under-supply relative to demand. There are only so many contractors, especially good contractors. And a lot of people want to hire them. In this area there's almost always a supply-demand imbalance for skilled contractors that favors the contractors. It's a high-cost-of-living area, and people want home improvements. In addition, with home sales slow because of high interest rates the past few years, more people are paying to renovate where they live instead of moving.
I absolutely don't fault Chu for wanting to shop for 1-2 competing offers. She absolutely should. But given the first company she called is well reputed and known to be fair, I wouldn't be surprised if the other offers either come in higher or would entail cutting corners that spell trouble a few years down the road. (If you cheap out on exterior sealing you get leaks, with inside-the-wall damage!) I hope she sees that quality work isn't always compatible with getting the lowest price, and that contractors who are busy because they're good aren't going to bargain down their price.
Chu wrote back to the group that the contractor had come through with a $33k bid that she thought was too high. Moreover, they didn't itemize the cost proposal to identify specific materials and units of labor. At first the amount of $33k struck me as large, too- our bill for window repairs years ago was more like $1,000- but then I saw Chu's description of the work she wants done. She's asking for 13 windows and 2 sliding glass doors to be replaced. ...Not just repaired, like fixing a pane of glass (which is what we did year ago) but replacing the whole window/door 15x.
A few of our neighbors pointed out that, yes, this project will be costly. The contractor has to cut into the exterior wall in numerous places, remove the old windows/doors, set the new casements in, then not only patch them up to the interior walls but seal them to the exterior, redoing the stucco and exterior paint.
Chu is upset that the contractor didn't provide a price breakdown and hasn't responded to her request to provide one.
I gotta say at this point, I understand where the contractor is coming from in kind of ghosting her request. For one, quotes can take time to prepare. I know in my company, there's a process around it. And when a prospective customer starts requesting multiple quotes, it triggers concern that the customer is aggressively looking for ways to argue for discounts and/or shrink the size of their order but still get the favorably unit pricing entailed in a bigger order.
Also, in any business situation, you've got to understand the market dynamic. Are the vendors hurting for work, or are they all booked up? If the vendors have staff idling for lack of work, they'll respond quickly to inquiries (they're not busy with other projects!) and they'll lead with discounts or offer them quickly to secure a deal. OTOH, when there's more demand than supply, the vendors hold the cards. They don't need to return calls lickedy-split. They don't need to write multiple quotes for choosy buyers or entertain bargain-seekers.
I believe that right now, in terms of home renovations contracting, we are facing an under-supply relative to demand. There are only so many contractors, especially good contractors. And a lot of people want to hire them. In this area there's almost always a supply-demand imbalance for skilled contractors that favors the contractors. It's a high-cost-of-living area, and people want home improvements. In addition, with home sales slow because of high interest rates the past few years, more people are paying to renovate where they live instead of moving.
I absolutely don't fault Chu for wanting to shop for 1-2 competing offers. She absolutely should. But given the first company she called is well reputed and known to be fair, I wouldn't be surprised if the other offers either come in higher or would entail cutting corners that spell trouble a few years down the road. (If you cheap out on exterior sealing you get leaks, with inside-the-wall damage!) I hope she sees that quality work isn't always compatible with getting the lowest price, and that contractors who are busy because they're good aren't going to bargain down their price.