The Four Types Of Contractors

  1. The Unlicensed Contractor:
    • Everyone wants to get the best price, so it is always tempting to hire someone who is¬†unlicensed. In reality, the unlicensed contractor buys their supplies from the same sources as a licensed contractor and, hopefully, pays their employees a fair wage. The only way they can save money is to cut corners on your project! Something a¬†licensed¬†contractor isn’t likely to do because they are being held accountable
    • Benefits of hiring an unlicensed contractor: Perceived lower cost.
    • Risks of hiring an unlicensed contractor: Generally contractors without licenses don’t have them for a reason, which is a huge red flag. Licensing requires passing written tests on codes and building practices, experience requirements and many other aspects that prove you are competent at what you are doing. If somebody isn’t licensed there is probably a really bad reason why not.
  2. The Disorganized Contractor:
    • The disorganized contractor tells you they can get something for a low price, and then tells you later that it isn’t available. They will forget to call you back, have another appointment, or simply just decide they don’t want to do business with you and not show up to appointments. They will more than likely “ball park” their estimates and try to do everything with a handshake agreement. Things take a long time, and there is always an excuse. You have no recourse though, because the agreement you have isn’t legal. It’s your word¬†against¬†theirs. These are the people that give contractors a bad name.
    • Benefits of hiring a disorganized contractor: They seem really friendly and confident
    • Risks of hiring a disorganized¬†contractor: You will spend every day trying to get this person to do the work they agreed to do. Your home will be a mess until “this one special part” gets in stock. If the work fails, you may end up in court because they have no warranty. These people may know how to build, but they don’t know how to run a business.
  3. The Prestigious Contractor:
    • The prestigious contractor builds things well, and charges accordingly. They have brand new trucks, a showroom, salesmen, huge advertising budgets, accountants, lawyers, middle¬†management¬†etc. The only problem with all of this is that none of this stays in your home when they leave. You will pay for all of this in a line on your invoice called “overhead” and “markup”.
    • Benefits of hiring a prestigious contractor: Perceived higher quality
    • Risks of hiring a prestigious contractor: Having to sacrifice on things you want, to pay for their overhead, markup and¬†profit. How would it feel to save up for years, just to know that you are paying for someone whom you have never met to go on vacation?
  4. The Value Contractor:
    • The value contractor seeks value in every decision they make. They make their money by doing a lot of really good work, for the lowest possible amount. You get the quality of the¬†prestigious¬†contractor, without paying for all the “overhead”. By keeping their overhead down, and mistakes to a¬†minimum, they can run the most efficent business possible and get you the best remodel for the best price. The only thing the value¬†contractor¬†needs is for you to be so satisfied with their work, that you recomend them to a friend.
    • Benefits of hiring a value contractor: Great quality work, at a great price
    • Risks of hiring a value contractor: Wanting to remodel your whole house instead of just your bathroom