First And Foremost
Posted by fccmo on April 20th, 2018
Hiring The Cheapest General Contractor - A Dangerous & Risky Mistake
First and foremost, they are less likely to be insured. This is a big red flag. A lot of new and cheap contractors are not insured when they should be. Or if they are insured, they only carry general liability insurance and not workers comp insurance. This creates a lower bid because you are not paying for their insurance. However, this is not something you should overlook because a lack of insurance can cost big bucks down the road if something goes wrong. A natural disaster, a job site injury, or any other human error has the potential to cost you, the building owner, more than anything else on this list. If something bad happens, you could be held liable for the damages even though the contractor is the one that’s uninsured. Make sure you hire someone that has general liability and worker’s compensation insurance and while you’re at it, make sure they are also licensed and bonded.
The building will be of lower quality. You will have to pay more down the road in repairs because of poor craftsmanship. Do you want to be performing roof repairs, for example, five years from now when it should have held up for 15? Or how about needing to replace a floor one year after you replaced it the first time? Those would be quite the expense. Also, it’s likely that the lowest bidder is using cheap materials to win your business with a low bid. With a commercial building, especially those that get a lot of traffic, using high quality materials is vital to the longevity of the building.
You will have to pay to fix mistakes or you will have to take the contractor to court. The worst-case scenario is when the cheap contractor actually makes big mistakes that will need to be fixed. In this case, you will have to find another contractor and pay them a lot of money to do the work. This could cost you almost twice as much as hiring an inexperienced contractor in the first place. If you want to take the cheap contractor to court and sue him for his faulty work, you will have to spend a lot of time and money and lawyers aren’t cheap.
If they are still the cheapest contractor, typically the quality of their work is poor or they are unreliable.
Prices are going up and it is recommended that you find a contractor who will be open about the true cost of things and explain why the price that he is quoting is what it is.
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About the Authorfccmo
Joined: February 16th, 2018
Articles Posted: 66
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