If you’re about to embark on a home remodeling journey, you’ve probably already begun getting estimates from local contractors. This is smart! Having a minimum of three to five quotes to compare is the best way to feel truly confident that you’re selecting the right general contractor to oversee your project. Reading these estimates, though, is another matter. You might feel lost and not confident whatsoever.
In this brief guide, you will learn about the fees contractors charge and how these all come together in your final quote. It does bear noting that not every general contractor charges every one of the fees you’ll read about here. It is, however, still wise for you to be aware of all of them. The more you know about how contractors create their estimates, the easier it will be for you to make a sound, educated decision.
- Insurance – Well-reputed general contractors carry liability insurance and worker’s compensation insurance to protect themselves and the homeowners they serve. They have to pay their premiums out of the money they receive from doing projects.
- Taxes – Just like any other small business owner, general contractors have to pay taxes on a quarterly or yearly basis. They are also responsible for paying into Medicare and Social Security for any employees they may have. All of these costs ultimately get rolled into estimates.
- Staff salaries – Some contractors have employees in their offices or in the field with them. These people must be paid out of the money the contracting company earns. It is likely that some of the money you are spending for your project might be going to cover workers’ salaries. In addition, keep in mind that the owner must pay himself or herself a salary out of the company’s earnings too. This is another component of any contractor’s quote.
- Gasoline costs/ Hotel expenses – Every day, your contractor and his or her team have to drive to your home to work on your renovation project. The gas they will be using to fuel their vehicle or vehicles is probably rolled into your initial estimate. If your project is out of town they will also make accommodations for their crews to stay closer to the job site to help decrease the expenses of fuel and time spent driving.
- Phone, internet, and other telecom expenses – In order for your contractor to communicate with you on a regular basis, he or she has to have access to a mobile phone, a landline, and the internet. All of these telecom services have to be paid for on a monthly basis.
- Marketing expenses – Contractors have to get their marketing budgets from somewhere; this money is typically also part of clients’ estimates. Without advertising their services, contractors won’t be able to bring in the new customers they need to stay afloat. For many companies, marketing money is the most important money they spend during any given year.
At Hatch Homes, we strive to provide our customers with clear, easy-to-understand quotes consistently. If, however, you have any questions about the estimate you receive from one of our technicians, we urge you to contact us. We have been serving Carolina and Virginia-based families for years and take great pride in offering incredible service to all of them.