Remodel Nightmares - Episode 2 - The All-Inclusive Fence (nightmare avoided)

I was recently bidding on a fence project that wasn't “concrete” in the design. The customer wanted a bid for a fence, more than 150 feet long, and also numbers for a retaining wall. The retaining wall was 68 feet long and required a materials price of over $1,500. After I provided the customer with my bid he informed me of a few things. The first thing he said was that my work photos look great and he liked the reviews my company has. Then he hit me with the “bad news” - another contractor was able to replace the fence, as well as the retaining wall for the same price as my offer for the fence alone. At first I was frustrated at hearing this but after I took some time to think about the situation I quickly realized something was wrong. How could this contractor offer so much labor, and so much materials, at such a cheap price. I thought through the minimum cost for materials and started to see that the other contractor couldn't possibly offer that price and give the project the time it needed. Either he was cutting himself way too thin or he was planning (intentionally or not) to come back at my customer later for more money. So I did the best thing I could think of – I told the customer to dig a little deeper.

I'd like to begin this paragraph by saying I offer a very fair price. I'm far from the most expensive business in town but I'm not so cheap that I'm struggling to survive. My business is growing and I'm confident that the price I charge on a contract is what the customer will pay at the end of the project. So to protect myself and my customers I instruct a lot of them to do a little research before selecting their contractor. The first is to find average prices through various websites. More information on that can be found in our “How to Find a Contractor” and “What's a Fair Price?” articles. The second thing I suggest all potential customers to do is look up the contractor. A quick search through your state Contractors Board website will tell you everything you need to know about a company, with the exception of customer reviews. Which leads me to my last suggestion – check their website and available reviews.

I instruct most people to do things in that order for a few reasons. Checking the average price lets you know what the ballpark cost will be for a similar project. I say similar because every project is unique and every price list is a starting point. I tell people to check the contractor second to make sure they're properly licensed. I don't care if a contractor has great reviews if they're not licensed, bonded and insured, which is why looking for reviews is the last step.

Back to my story of the potential customer. After a few back and forth messages he chose my company and I scheduled an appointment to sign a contract and required notices. After a few minutes of our meeting he mentioned the other company - “So I did what you suggested and looked him up. Apparently he has insurance but hasn't been licensed in years”.. And there you have it. This “contractor” was trying to outbid me by cutting himself short. And while some people would be comfortable with the cheaper price this customer wanted to know why it was so cheap. Luckily for him he found out in the beginning, not at the end. Without the CCB there is very little protection for the homeowner. There is nothing to stop a person from taking money for materials and labor and never showing up. I can't say for sure that this would've happened to my customer but I'm glad that we don't have to find out.

So remember – Find the price. Find the history. Find the reviews.