Keith Austin Homes, Inc.

Bonnie went to a jobsite, back when she was selling trusses, at the request of an owner builder.  It was just a dirt lot, the lot wasn't cleared, it wasn't surveyed, formed or layed out.  She met with the homeowner and got a set of plans and was getting ready to go when the plumbers show up.

There are five things that have to happen before the plumber shows up to install the underground pipes.  Sometimes more, depending where you build.  The plumbers contract states that the job must be ready or they charge $125.00 per dry run.  It's not the plumbers job to tell you when it's time for to call them.

Contractors know the order things must happen.  If we screw up we eat the $125.00, you do not.

After Tropical Storm Fay KAH, Inc painted many houses with a 10 year warranty paint.  Many of the customers asked if our price included paint.  Many of the other houses in the neighborhood were painted the year before, by another company, with no warranty at a greater cost.  Of course our price included the paint.

Contractors use the trades all the time therefore we get better prices.  They also know I will pay them even if my customer doesn't pay me. 

Why are contractors prices on some things higher?

This happens for many reasons.  Some trades lowball to get work. (These are the guys that usually don't ever finish.)  Some don't have licenses.  (They tend to stay under the radar by being cheaper and asking for cash.)  The biggest reason is no insurance.  If I come into your house and move a wall with all the electric and plumbing moving with the wall.  And later that night a wire (w/o a wire nut because a nosey neighbor that came over to tell you that you are doing it wrong moved the wire and the nut fell off) causes a small fire that is quickly put out when it burns through the PVC water line.  Now you house is flooded.  Guess what, me and all the trades I use have at least $1,000,000.00 of insurance.

The guy without insurance disappears and you are stuck with a wet house.  Then you can call KAH, Inc.

Why should I pay a contractor's fee if he is just going to sub some work out?

Again we use the trades all the time.  You can call the same trade I use and generally his price will be higher to you than my price to you, for the same work.  It takes a lot of time to get prices, meet people two or three times, make selections, change selections, change selections again.  While I am doing that on my time for the trade he can be getting other work.  In building a house this saves the trades thousands.

On big projects it saves you.  You only have to meet with one person.  On just a bathroom remodel you could meet with 10 or more trades.  Not to mention the trips you make to pick up supplies for the trades that aren't "turn-key."  (The drywall guy doesn't show up with drywall.)

Let's not forget about pulling permits and dealing with the county and various municipalities.  The time you miss from work letting people into your house or waiting on inspectors. 

To go back to the earlier example of the guy who called the plumber to early.  He is building a big house, it's taken almost two years and the cabinets just went in.  Here is a mistake list:

• Called the plumber too early which not only cost him, now he is at the back of the plumbers priority list.
• Played trades against each other to get them to beat the other guys work.  This actually cost them more due to poor workmanship and the homeowner having to provide more items for each trade.
• There roof was bid $20,000.00 too low.  As a result it was not attached correctly.  To remedy this the homeowner called the city he was working with-now he needs a new roof because the tile is installed incorrectly.
• He paid his framer in full before the framing inspection. The framer won't come back now.
• Had to buy screws, mud, and tape for the dry wallers.
• Ordered wrong fireplace.  Re-stocking fee.  Install twice, pay installer twice.
• Ordered wrong windows.  See above.
• Used wrong paint.
• Painted stucco too soon.
• Have a strange bathroom layout because they didn't check plans.
• Engineering on plans wrong.  Had to pay again to get the corrected.
• Laid kitchen out wrong, wrong cabinets ordered.
• And so on!