25 May 4 Factors That Determine Contractor Prices
A contractor is a very important person for the success of your construction project. For the professional to give you good services you need to pay him / her well. There are many factors that determine the prices charged by the professionals. Some of the factors include:
Price of covering risks
When contractors take on a project they take on great risks which can see them not only reducing their profit margins, but also even make losses by the completion of the project. Before they charge you, many professionals will visit the construction site and study it. This is to help them understand the site better and find out the risks that they need to be wary of.
Regardless of how careful the contractor can be, he / she may face a number of unpretented risks such as labor disputes and site problems such as digging up an old grave or deep rock formations.
Experienced contractors always factor in costs of visible and invisible risks.
How fast do you need the work to be done? Many professionals will charge you a premium amount if you want the project to be completed within a short period of time. You should sit down with the professional and agree on the best time to complete the project.
While it's good to have the project completed fast, you should not hurry it too fast to the extent of the building collapsing.
Change of plans
It's common for homeowners to change their house plans every now and then. Experienced contractors understand this and they always consider it in their price quotations.
While you can change the plan and favor the contractor (make the contractor use fewer raw materials and take shorter time), most contractors assume that the changes will see them spending more materials and time.
Experience and reputation
Work experience strongly determines the price that the professional charges you for his / her services. As you may expect, highly experienced and reputable professionals will charge you a premium amount while new and inexperienced professionals will charge you just a small amount.
You are always discouraged from hiring the cheapest contractor as he / she might jeopardize the project. While an expensive contractor is deemed better it's not always the case.
Before you hire the professional you should research on how he / she relates with other sub contractors and developers. You should also find out how the contractor crew conduct themselves on the construction site.