8 Reasons a Contractor Might Give You an Outrageously High Estimate

You Forgot to Consider Labor Costs

“If an HVAC unit has a defective part that needs replacement, most of my clients will immediately ask how much the replacement part costs,” says HVAC technician Tamer Sayed. “I always tell the current market price and the misunderstanding often starts here. A few clients forget to take into account the labor and consultation fees. They assume they only had to pay for the replacement part.”

The same thing can happen with plumbing and electrical jobs. The part needed to get things working again may be small and inexpensive, and it may only account for a small portion of the quote. Sometimes the labor quote seems excessive, and that’s usually because the client doesn’t understand what’s involved with the repair.

You Underestimate the Scope of the Project

Jake Vincett, a builder from the UK, makes this observation: “A lot of the time, the customer is comparing quotes for different work, because the cheaper one has included a surface repair whereas the more expensive one has quoted for fixing the underlying problem…It’s common that the customer doesn’t know or consider the amount of work going into a project. A new driveway isn’t just laying tarmac – it’s digging out the old one, laying the sub base, etc.”

Plumbing, electrical and HVAC expert Bob Cardwell adds: “It’s often not only one problem to fix but a bunch of small fixes. Even though it might be possible to fix the original problem without addressing the additional issues, an experienced and reliable technician will not ignore them, will try to fix them and will discuss them with the homeowner.”

Failing to provide a quote that addresses underlying issues and then delivering a sky-high bill at the end doesn’t just make the customer unhappy, says HVAC and plumbing expert Ryan Osterkamp. “It can make them feel like we don’t know what we’re doing.”

You’re Undervaluing Professional Expertise

Osterkamp is used to hearing customers say: “I can go get that part for $X at Home Depot.” What they aren’t thinking about is the amount of training and expertise that made it possible for our technician to quickly and accurately diagnose the issue, have the supplies they need in their truck and be able to do the repair same day. Sure, you may save money by going with the guy on Facebook that works out of an old, unlabeled truck, but if his work doesn’t hold up, will he fix it without giving you the runaround? Is he insured? Does he offer a warranty?”

Costs Are Rising

Tariffs, inflation and the economy in general are pushing prices up, and the dollar has lost a lot of its purchasing power for the average American. The same is true for contractors. “The fact of the matter is, we’re working harder now and making less,” says remodeling contractor Kevin Cullen. “In today’s economy, a lot of people are chasing the price to the bottom and shopping for the cheapest number. Unfortunately, they usually get what they pay for.”

The Contractor Is Trying to Avoid Surprises

A contractor who knows problems might creep up, such as a rotten subfloor that needs replacement during a toilet repair, makes an effort to warn customers as part of the quote. Potential problems aren’t always obvious. “There are times,” says Nika Tveretinova, who operates an HVAC business in Sacramento, “when the actual fix isn’t that complicated, but it’s the access that makes things tough—especially with equipment installed in an attic or cramped quarters. Sometimes we also find an old installation that needs a safety or code correction before we can put everything back together.”

In such situations, a higher-than-expected quote that you can reject is far better than a higher-than-expected bill you have to pay because the work is already completed.

You’re Relying Too Closely on Online Pricing Guides

Joshua Kurz founded NumeralQ, a home improvement pricing guide, and he cautions against comparing a bid you receive from a contractor to information you find online. “Owners often find an estimate online, and rather than waiting for a bid, they assume that number will be the actual cost. These estimates are helpful when determining a budget, but they are not interchangeable for actual bids. A 1,500 sq ft roof in one market will not necessarily cost the same in another market, and bids can even differ for neighboring houses.”

The Contractor Needs to Redo Previous Work

If you find a guy on Facebook who charges a low price to do a repair, there’s no guarantee that the repair will last or be up to code. When that person makes a mistake, a licensed contractor working on the same system at a later date might have to fix it, especially when inspectors are involved.

“Over a 40-year career,” says Cullen, “I’ve found many surprises: unsupported headers, no king or jack studs, undersized headers, poorly installed headers that aren’t flush and have gaps, termite damage, carpenter ant damage, water damage, mold. That’s not every job, but you never know when a homeowner bought a house in which a Rube Goldberg did the work on it.”

The Contractor Doesn’t Want the Job

Sometimes a house is in such poor condition that a small repair, such as stopping a plumbing leak, can turn into a major project that involves replacing pipes, walls or subfloors. Rather than simply declining the repair, some contractors will offer a ridiculously high quote to avoid falling into a sinkhole of extra work. If the customer accepts the quote, the contractor won’t lose money by taking the job. A customer who rejects a bid can keep shopping with no harm done.

About the Experts

• Tamer Sayed is the owner and lead project manager at Tamas Mechanical, an HVAC company based in the Toronto area.
• Jake Vincett is the co-director of Heritage Build Group LTD, a construction company based in Kettering, Northamptonshire, UK.
• Bob Cardwell is the owner of Cardwell HVAC. He brings over a decade of hands-on experience serving South Jersey homeowners and businesses.
• Ryan Osterkamp is the founder and co-owner of Quality Comfort Home Services, a family-owned HVAC and plumbing company based in Cincinnati, Ohio.
• Kevin Cullen owns Creatively Done Homes Improvements Inc. of Hicksville, NY, a Nassau County remodeling company founded in 2015.
• Nika Tveretinova is the Vice President of CABS Heating & Air Conditioning, a family-owned residential HVAC company serving the greater Sacramento area and parts of Yolo County.
• Joshua Kurz is the founder of Numeralq.com, which researches localized costs of 18 services across 147 markets.

The post 8 Reasons a Contractor Might Give You an Outrageously High Estimate appeared first on Family Handyman.