‘‘What is a fair price"

Q: We have had several estimates from different
building contractors to build our new home.
The price quoted is in excess of our budget, but
my wife is happy with one of the quotes because
she has seen the quality of his work and has had
favorable responses from his past clients. What is
a fair estimate?

C. Benjamin, St. Patrick’s

A: I will bet this exchange between husband and wife
happens hundreds of times. We are constantly flooded
with enquiries from people who do not understand
estimates. All too often difficult jobs are described as
being no problem or easy. I know what happens before,
during and after each construction project.
First, let us think about this contractor’s business. He
needs to have all sorts of equipment and a place of
business; a portion of these costs must be allocated to each
of those completed project. Some contractor’s offer free
estimates; the time spent doing this activity costs money
and must be applied to those successful contracts.
My guess is that you want this contractor to be around if
you have a problem later on down the road. That is a very
reasonable expectation, for this to happen his business
needs to be profitable. Yes, it is not sinful to make a profit.
The marketplace usually weeds out contractors who charge
excessively.
To find out what the average price is for your project, you do
need to compare quotes and choose the one that is closest to
your budget but keep in mind that good quality work comes
with a price tag and you want the contractor to be able to
complete the project on time and within budget.
Finally the contractor has to purchase materials and pay
for labour; you may be shocked to learn