Is Your Remodelling Project Priced for Problems?


Getting a fair estimate for your project is important. But what if the price seems almost too good?

According to one remodelling industry expert, “remodelling horror stories often start with a great price.” Why is that?

Shopping for a remodelling project isn’t like purchasing a brand-name product where you get the same product no matter what retailers charge. In fact, comparing bids on price alone can be a costly mistake. A better approach is to look at what factors affect the remodelling estimate you’ve received.

For example, to give a lower price, remodellers can base their estimate on lower-quality lumber, cabinets, flooring, windows, doors, and other materials and skimp on the thickness of sub flooring or the amount of insulation they actually use. You won’t know this until too late — when things start to warp, fade, crack, jam, leak or squeak. They can also base their estimates on “allowances” for the least expensive option in lighting or plumbing fixtures they install. You won’t discover that the estimate covers only low-end fixtures until you begin making your actual selections. Then, you’ll pay extra for what you thought was already included — a price that may even cost more than the “higher” estimates you received from remodellers who priced fairly.

Labour is a major cost for remodellers. Highly skilled carpenters, project managers, and specialty tradesmen command higher salaries than those with lesser skills. However, you’ll get a better job that runs more smoothly with a remodeller who offers a well-trained production team versus a remodeller who uses low-cost, unreliable, and less-skilled or inexperienced labor.

These practices are unethical, but not illegal. Plus, by using them, remodellers can cut 30%, 50% or even more from the upfront price they give you.

Some remodellers, however, cross the line by not being licensed or even legally recognized businesses. They may not carry workers comp. If a worker is injured on your job, you can be liable for medical and other expenses. General business liability insurance may be missing as well. Or, they may ’save you money’ by not pulling a permit or getting inspections. That’s illegal.

Some remodellers may suggest you take out the permit in your name to save money. Careful! This means you’ll be legally and financially responsible for the project meeting code. Wouldn’t you rather have your remodeller responsible for their work? Plus, remodellers who take these types of shortcuts may take other shortcuts when building your project.

The bottom line is that without quality materials, skilled craftsmen, and professional project management, a remodelling project is almost guaranteed to disappoint. It can become a true horror story if the project is so under-priced that the remodeller can’t finish it. In that case, you’re stuck with a half-finished project or forced to come up with more money. You may even have to find another contractor willing to “rescue” your project.

When comparing remodelling estimates and contracts, a low-priced bid could look very similar to a reasonably and honestly priced contract. On the surface, they may both describe the same project, but as you now know, the devil can be in the details and not all remodelling estimates are highly detailed. The way to protect yourself is to make sure the remodeller you are working with is qualified, honest, has a good reputation and can show you a good track record plus highly satisfied clients.