Making decisions on construction costs and pricing for your home remodeling project.
Straight Talk about Construction Costs
I am not a spendthrift. But I’m not a cheapskate, either. Good pricing is an important detail. But I know people who are not happy in a deal unless they feel like they’ve beaten the other guy down to nothing. That approach to business is costly and inefficient. Because most times it will end up backfiring in a bad way.
Price vs. Cost
Price is what you pay today. Cost is the overall price you pay in money and in other ways over the long term. Allow me to illustrate with an example.
Let’s say you are remodeling your house and doing a room addition. You want to know what the construction costs are and have asked three contractors for bids. You call in the lowest bidder and begin chiseling him down on his prices. He is desperate for the work so he agrees to renovate your home for what it costs him. He will be able to keep his workers busy and pay them, but he won’t make a dime of profit on the deal.
You feel great because you think you are a shrewd negotiator and won the best deal for yourself.
Getting the cheapest deal don’t necessarily mean you’re getting the best deal.
But what you don’t realize is that during the course of your home renovations, you will be making changes to the work order. Dozens of them increasing and inflating construction costs. And every time you make a change order, he will screw you. It will be a screwing he believes you deserve. By the time the house is done, he will have his profit and more. And you will have paid a higher price than you normally would have. And made an enemy in the process.
In most cases, the lowest bidder in a contractor bidding war offers his services for such a low rate because he knows his work is slip-shod, performed too quickly without attention to detail, with unskilled labor and done with low quality materials. In a short amount of time your house starts falling apart. You’re now suffering a loss of money, time, and patience by dealing with the inconvenience and embarrassment of massive hassles along the way. The total long run construction costs that you end up with is not worth the low upfront price you originally paid.
As a contractor and an investor in San Diego residential real estate for over 30 years, I’ve seen this scenario play out 100s of times among friends, colleagues and through horror stories from customers about their experiences with other contractors. I’ve learned from my business and financial relationships that getting the cheapest deal don’t necessarily mean you’re getting the best deal. Learn more here about comparing contractor bids.
Pros and Cons of Hiring a Cheap Contractor
Is hiring a cheap contractor really a good deal?
There are hundreds of books and articles on how to save thousands of dollars by hiring a cheap contractor. Is cheaper always better? Most exaggerate the amount of savings and the ease of doing things along with the associated the risks and difficulties involved. You are sure to come across some success stories when hiring a cheap contractor. Let us help you get to the bottom of the truth. See if it’s worth it to you by hire a cheap contractor and making all those savings while compromising on quality of services.
The only ‘pro’ of hiring a cheap contractor is that you save some money… at first.
It’s wishful thinking to believe that anyone can do the job on the cheap and that it’s okay to find a cheaper contractor of lesser experience. The truth is it takes time to develop the essential skills required in a good contractor. After all it is not easy to plan and manage a building project and stay clear of any costly mistakes.
Your cheap contractor might bill you less but he just cannot have the skills to do the right planning and preparation because of his lack of experience in construction. Thus you can expect more than average share of unpleasant surprises and unexpected problems to crop up and these can actually add to your construction costs and time wastage at the end of the project, or worse yet, years down the road. So the better the planning and with a more experienced contractor, fewer will be the mistakes and unexpected costly surprises.
Advantages of Hiring a Quality Contractor
An experienced contractor brings a wealth of knowledge and that can make the whole process go smoothly. You will in fact be making some good decisions that will prove to be good in the long term. This will save you much money and many headaches later on. One is sure to get quality work and better results because the experienced professional team knows what materials to use and essential building details that will stand the test of time. The quality contractor will actually save you money on construction costs because he knows how to manage the work efficiently without adding extra costs.
The list of issues can just keep piling up with an inexperienced and cheaper contractor. You could avoid most of these problems by hiring a reputable and experienced company like HK Construction for the task. With an experienced contractor by your side, you can be sure that he will avoid most of the problems because of his expertise and better planning, and your project is sure to go smoothly.
Poway based HK Construction & Remodel can help you make some real savings as you get the best of both worlds. Our construction team is experienced and has competitive prices in the industry. So choosing HK Construction will make you feel more confident and ensure that your projects are in the hands of a knowledgeable and experienced team of home remodeling construction contractors.
Look for These Three Qualities in a Contractor
When doing business with someone as a customer, look for three qualities:
- A good match (someone who brings you something useful that you need).
- The right personality (someone you enjoy working with).
- The right deal (a deal that is fair for both of you).
The Bottom Line
I treat people the way I want to be treated. With fairness, honesty and respect, and always providing the best value possible.
Whether you’re selecting a contractor you want good value and a great experience. You don’t want to overpay for it. So find a contractor who knows how to keep construction costs low while maintaining a high value. In contrast, you don’t want super low construction costs because then you’ll pay later in the form of problems and hassles. At HK Construction & Remodel we have over 25 years experience in home remodeling. So we do our very best to provide a wonderful experience along with great service at a fair price.
I you need more info or have any construction costs or pricing questions then please let us know. Because we’re happy to help you any way we can!
Company: HK Construction Company, Inc.
Owner: Marc Gieselmann
Location: Poway, CA.
Phone: (858) 748-6580
Social Media: Connect with us on Facebook, Youtube, Pinterest, Yelp for more portfolio images, new construction, and other home remodeling ideas.
Service area: All of San Diego CA and surrounding cites and counties. See complete service areas list.
NARI Member and BBB A+ Rated
HK Construction is a long time NARI member in good standing. So you know we are the real deal. Additionally we maintain an A+ Rating with the Better Business Bureau. Because we believe your satisfaction as a customer is our top priority!
HK Construction is Member of NARI and BBB