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#003
Want to save money on your construction projects?
Building contractors price a job on how much they want it, not necessarily how much it costs...
I'm expanding on this topic from a recent Instagram post I wrote, mainly because I think this isn't talked about enough in property circles and should be highlighted...
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I am hopefully well placed to comment on this after spending nearly a decade on construction sites as a site manager & planner dealing with tradespeople, plus another 10 years as a property investor & developer. Read on to understand how, with this knowledge, you can make finding tradespeople cheaper & less painful...
I think a lot of people believe they hold the chips when employing tradespeople, whether this is using a main contractor or employing individual trades. With this train of thought, people tend to assume because they've got cash to spend and the contractor needs work, it should be relatively simple to find a good contractor to complete their project.
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In reality this is not quite how it works, however I don't blame people for thinking this way - in a black & white sense it should work like this. However as there is with all things in life & business, there is a grey area. Within this grey area is where the contractor is looking back at you trying to work out if they want the work...
There are a few variables here, with the primary one being how much work the contractor currently has on - if they're flat out busy they will still price your job, however just increase their price. If they do get the job, it's a bonus and it's worth the hassle of rejigging their calendar & workload. I don't blame them for this either - a self employed plumber or electrician doesn't get a yearly bonus or annual wage increase as is the norm in the corporate world, so they take the cream when they can. And let's face it, it's no different to what Uber does every Friday & Saturday night!
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The other variables to note are to do with risk, user friendliness & trust...
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Risk - the contractor is going to look at your job and assess the risk. This risk will be in relation to cost & effort - cost wise if they give you a price, how likely is it going to be that it will actually cost that amount, and will they have to either take the extra cost on the chin, or need to have the difficult conversation with you about more money halfway through the job. Effort wise, if a contractor is pricing two jobs and one looks more effort that the other, the price will change accordingly. I believe everyone who employs contractors frequently should have a day or so on the tools, I promise it will give you a different perspective on how you earn your money!
The way to overcome this challenge and ensure you have contractors thinking it could be a good job is to simply, be organised. The more information you can give your contractor regarding their works package, and the better understanding you have of your job and the moving parts within it, will reduce the risk they foresee. In doing this you are more likely to receive a fair & detailed quote.
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User friendliness - it works both ways, you want a contractor who you feel is user friendly and someone you can have a chat with when things change or go wrong - which it inevitably will because it's construction! This works both ways though, the contractor is looking at you thinking exactly the same thing! To be frank, if the contractor thinks you are liable to be a bit of a pain to work with, they will either decline to quote or give you an increased price.
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The solution to this is to communicate well with your contractor and again be organised, whilst also listening to their thoughts and opinions in an effort to achieve a fair conclusion on all matters. It's worth noting however, there will be a few bad apples - you might do all these things and still find contractors not quoting or giving you ridiculous prices, it's at this point you move on, as the right one will be out there...
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Trust - essentially very similar to the point above, it works both ways. You are looking at the contractor thinking "are they going to finish on time & do a good job?" - the contractor is looking at you thinking "are they going to pay me?!!".
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As with most things in life, trust is earned through continued communication and doing things the right way. When dealing with a contractor for the first time, you are both feeling your way through this new relationship, which could be quite painful if it goes wrong! Be straight and to the point with your contractor, you are not trying to make a friend, you are trying to create a working relationship which benefits both parties. Don't be afraid to call BS if you need to, however at the same time do listen to what they are saying about your project. The good contractors do it day in, day out so probably know a thing or two!
If you take note of the points above and be organised, diligent and straight to the point with the contractors you work with, however at the same time listen to their thoughts about your job, you can't go too far wrong.
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There will always be the bad guys who will try & pull the wool over your eyes, however these contractors can be found out quite quickly with a bit of knowledge. Conversely there are the good tradespeople, who I have a massive amount of respect for, who go out everyday and do a solid days graft. In a nutshell, remember that contractors are checking you out, just as much as you are assessing them - understand the importance of this and you'll achieve a better working relationship and I dare say a better price!