What does it cost?

What does it cost?

How much does is cost? Why is it so expensive? You want how much?

It cost a lot to be a licensed contractor. The state and insurance companies have their hands in our pockets. Contractors are bearers of bad news. We add things up. We include hidden items the owner doesn’t think of. We have all cost on our shoulders. We also have the responsibility guaranteeing that the project gets completed. By federal law, contractors have to manage and train our personnel.

People who don’t work with their hands are critical of those who do. I always ask the client if they have hired a contractor before and been thru a remodeling project. The client has high expectations. Most people have never had to make payroll. Getting employees to be responsible and productive is a contractor’s nightmare. Cost of liability and workers compensation, FICA, training, lead paint, OSHA, safety gear adds up to a lot to the LABOR BURDEN RATE. The skilled employee cost a lot to keep going and must be productive. The productive hour includes company overhead, owner’s compensation, tools, equipment, office personnel, training, all insurance cost, all vehicle cost, etc. Contractors today have to put up with employee drug use and alcoholism. I don’t hire anyone with a back pack riding a bicycle without a drug test. Even in today’s economy finding qualified help is a problem. Employees don’t come pre-trained. With over 700 employees thru the years and as hands on contractor, I have stories to tell.  I tell home owners that there is nothing you can think of that I haven’t done! If only I had a clone.

Depending on the project, there is day after day after day of activity. In renovation work, you have to take the building apart first and prep the build for construction. You cost a lot of money- you get a lot. Home owners tend to simplify everything. Contractors are required by law to protect the public, work according to code; regulations approved plans, specifications, scope of work, and a contract. Then provide a warranty for everything for a year.  What warranty do attorneys and doctors provide?  Contractor competition is not an issue, comparable scope of the defining project work is. Remember the design professional is working for the building department. Here I got your permit!

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