Help! I need a shopping centre where i can buy most of my items
Sorry this doesn't answer your question, but i think it's real important to bring up at this time
For you, or anyone else reading that's considering buying materials for a contractor
I'm not saying that this contractor is trying to pull a fast one, or is doing anything but trying to save you some money, but consider these:
Buying Materials For the Contractor Doesn't save That Much Money
Most contractors get a discount
Some add a little mark-up, some don't
The little bit of mark-up almost never covers the time (=money) spent at the lumberyard or home center picking up the items
And they can't mark-up that much-it's easy enough to find out what something goes for
The contractor doesn't want the customer calling up and (rightfully) complaining about being charged $200 for a $100 item
For larger items, or orders, it's ordered over the phone or by fax and delivered anyway...for a fee (well worth it)
It is conceivable that providing the materials could save the H/O a small amount of money
(of course, now they have a lot of work to do)
As it seems to save the contractor a low/no/negative profit headache, you'd think they'd be thrilled to let the H/O supply the materials
Read on...
Customer Supplying the Materials Increases the Headaches for the Contractor
OK, it's possible it might work out, but in reality it's fraught with problems
Most H/Os don't understand about sundries and how much of the total job things like sandpaper and nails cost...and they never buy enough
Or forget them completely
And they are rarely around when you run out and need more
This takes time (=money) away from the job at hand
Most H/Os don't understand when you showed up this morning you were going to install the vanity, and you can't go "work on something else" because "I still haven't gotten over to that store yet"
Most H/Os don't understand when you can and what you can substitute on a list, and when you can't
I could go on, but hopefully that will suffice
The point is, having the H/O supply the materials is a Huge Unknown
A contractor simply can't accurately bid with such a huge unknown
I'm not saying you specifically wouldn't be great at it, or it doesn't work out occasionally, it's just true most of the time
Which is why most contractor supply the materials
They are not making a lot of money (if any) on it
They are ensuring quality and production rates
Personally, if a customer wants a bid where they supply the materials, the labor is automatically increased by %30 minimum and is always more than if I supplied the materials
It's that big of a deal
Customer Supplying the Materials may Change the Contractors Status, and/or allow unethical contractors loopholes
In many states, the H/O buying the materials makes them the General Contractor
Sounds great, but what that means is the Homeowner then assumes all the responsibilities of an employer, including the workman's comp. and liability, etc. type deals
That means, among other things, that a worker falling off a ladder could bring a claim against you (rather than their real boss/company)
This also means the real GC, or Contractor, doesn't need the licensing they would normally need
It means they can work around the laws because in buying the materials the H/O is now the GC, and the Contractor an "employee"
It could be an issue with zoning and permits also, as that could be the "GC's" (now H/O's) responsibility
Now if the contractor doesn't have to worry about that stuff, it saves them time and money...and could allow them to work around the law
I'm not saying that your specific contractor is attempting this
I'm just saying it's a very common for unscrupulous, unlicensed (or revoked), un-insured, contractors to use this work-around to not carry insurance, pull permits, or have the proper licenses
Bottom Line:
It doesn't save the Homeowner that much money
It increases headaches and costs for the contractor (and/or adds a large unknown factor)
It allows unscrupulous contractors to skirt the law and makes the homeowner liable
IMO that's enough to cause one to stop and review the arrangement
|
Linear Mode
