Contractors gouging or are the prices fair?

[Anonymous]

Can someone with inside knowledge of contractor business models please enlighten me? Almost every time we ask for a bid on work, for example patio construction, drainage improvements, bathroom renovation, the bid we get basically works out to $1000 per day per worker, and I'm including the estimator/business owner as a worker in this count, even though they only show up at the site for 30 minutes on the first day and never again. These workers tend to be hard workers but not very educated, unable to speak English, and basically just doing things like digging ditches, pouring concrete, laying down pipes. I'm not saying it's easy work, I realize it's hard labor, but it's not heart surgery either. So for example if we're getting French drains installed, we're paying $8000 for a project that takes two days, with 3 guys doing the actual work and 1 guy being the estimator/business owner who's getting a cut, paying for insurance, gasoline, marketing and so on. The materials in this case add up to less than $1000.

Is this the way contracting is supposed to work? Or is this a particular gouging disease that has afflicted the Bethesda area? I've lived in many places around the world, including in New York City and Boston, and I've never seen these types of prices anywhere. But maybe these prices justified? Genuinely trying to understand.

[Anonymous]

Supply and demand. Your 2 day project isn't that valuable to them when your across the street neighbors have a 2 month project.

The last contractor I called had a $30k minimum to do any work. My project was "only" going to be about $12k, so he wouldn't touch it.

[Anonymous]

Is it worth $8000 to you not to do it yourself?

Then it's a valid price.

[Anonymous]

If you think it’s so easy and unskilled, save yourself $7k and do it yourself.

[Anonymous]

Anonymous wrote:Is it worth $8000 to you not to do it yourself?

Then it's a valid price.

Aha ok so it is in fact price gouging. That is the very definition of price gouging.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Is it worth $8000 to you not to do it yourself?

Then it's a valid price.

Aha ok so it is in fact price gouging. That is the very definition of price gouging.

This is not the definition of price gouging.

[Anonymous]

Now is the worst time possible to do reno and repair. Contractors are ripping people off big time. Wait until there's a recession and they'll be crying for work. It's probably coming in 2023.

[Anonymous]

I had to have some deck repairs done (railings were getting loose and some wood needed to be resecured). I also needed power washing, stain and some fence repairs. First quote was $6800(!!!). Second was $1800 which I thought was actually fair. In this economy you definitely need multiple quotes.

[Anonymous]

Anonymous wrote:Now is the worst time possible to do reno and repair. Contractors are ripping people off big time. Wait until there's a recession and they'll be crying for work. It's probably coming in 2023.

You were saying that in 2020 too.

- signed someone paying a contractor $10K and keeping my mouth shut because I can’t even nail a wall

[Anonymous]

Profiteering.

That's the word, OP. Building contractors have always worked this way, because their financial health directly depends on boom times. So in recession, when no one can afford repairs or renos, they fall over themselves for the contract and give you stuff at cost. In wealthy areas that are insulated from recessions, and in boom times (we haven't gone through the Covid backlog of people desperate to renovate their homes), they can pick the larger, more lucrative projects and pass on the rest, or increase costs on the smaller projects just to make it worth their while.

[Anonymous]

12:55 again. Do the French drain yourself, or hire a handyman or willing teen/college student to help you. It's not financially smart to pay a building contractor for unskilled labor. My husband, along with both our immediate neighbors, all do as much work as they can themselves.

[Anonymous]

Anonymous wrote:Now is the worst time possible to do reno and repair. Contractors are ripping people off big time. Wait until there's a recession and they'll be crying for work. It's probably coming in 2023.

This! A contractor admitted to me they are gouging people, but people are paying it anyway! His advice was to NOT do any work now. Wait until there’s a recession and/or when prices come down.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Now is the worst time possible to do reno and repair. Contractors are ripping people off big time. Wait until there's a recession and they'll be crying for work. It's probably coming in 2023.

This! A contractor admitted to me they are gouging people, but people are paying it anyway! His advice was to NOT do any work now. Wait until there’s a recession and/or when prices come down.

Sure, and in the meantime OP can just let water flow into her basement for a couple more years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Now is the worst time possible to do reno and repair. Contractors are ripping people off big time. Wait until there's a recession and they'll be crying for work. It's probably coming in 2023.

You were saying that in 2020 too.

- signed someone paying a contractor $10K and keeping my mouth shut because I can’t even nail a wall

2020 would have been the worst recession ever but the govt dumped unprecedented stimulus and cash into the economy, which is why we have so much gouging from contractors now. Wiait until the sugar rush ends and contractors are struggling for work during a recession.

The amount of money we dumped onto the economy was absurd. I know small business owners. One owner of a restaurant basically got $600k for free through PPP. He used all of the money to reno and repair the restaurant while jacking up prices. That's why you have so much business for contractors at the moment. So much money flooded into the system. It will end. Sugar rushes always end badly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Now is the worst time possible to do reno and repair. Contractors are ripping people off big time. Wait until there's a recession and they'll be crying for work. It's probably coming in 2023.

This! A contractor admitted to me they are gouging people, but people are paying it anyway! His advice was to NOT do any work now. Wait until there’s a recession and/or when prices come down.

Sure, and in the meantime OP can just let water flow into her basement for a couple more years.

Wait til she has to regrade her basement, install new flooring and sump pumps. She’ll be crying while drawing down on that home equity line.

Here’s a tip PP - don’t advise anyone to put off repairs that can degrade the very foundation of their home.