Why are contractors so expensive?

Great question, aside from the fact of the principle of supply and demand. There are many factors that affect the cost of a contractor.

Skill level and experience are the qualities customers seek when hiring a contractor. It is as simple as you get what you pay for. Good craftsman do not cut corners or cheap out on proper material installation.

When it comes to performing the labor, many people think to themselves, “I can do the labor.” This may be true to extents, but experience takes time to accumulate and so do the tools to perform the job! The fact is, you want the job done right the first time. Selecting the right material the first time takes experience and trip gas. This could mean time killing costly trips to the hardware store or Home Depot.

Next, having the correct tools and experience using power tools are part of a contractors job. They can safely and efficiently operate tools and know where to rent tools if they are in need of heavier equipment, and guess what… tools and tools maintenance costs.

Is that enough reason? Think about the economic inflation. The costs of running a business is not cheap. Most contractors are required to purchase liability insurance and a separate bond insurance. If there is a license, required there are licensing fees. If they have 5 or more employees, the employer is required to purchase Workers Compensation insurance. Business owners also have to provide the safety equipment. These expenses called, “Business Overhead Expenses,” are part of the “Business Operating Expenses,” and these expenses must be calculated in the contract or bid as a percentage of the total contract.

Aside from the hours in the office or at the desk bookkeeping and accounting, drafting bids and contracts are time consuming, and often done off the worksite. There is a considerable amount of paperwork to be done. Contactors have to add Allowances for items not specified in the contract such as specialty fixtures and finish materials. Contingency Percentages should be added for the unanticipated problems that occur on nearly every major project, and Mark-ups have to be added for profit margin.

So if you have a good contractor, consider the task a contractor takes on. Consider the liability they assume. Your contractor is your Project Manager. These tasks can be very large or simple, but they are always assuming a risk that can add their business and your property. That is the most important point. Don’t short yourself on quality.

Alfred Robinson Robinson All Phase Plu

mbing LLC