Why Contractors Say No
“I have had X contractors look at my project and none of them want to do it. Why?” I’ve heard some form of this several times in the last few months — sometimes as direct question, sometimes as an offhand comment — so it seems only appropriate that I address the issue here.
When a contractor or the contractor’s job estimator looks over a new project, they’re looking at a lot more than just the results that the property owner wants to achieve. From a builder’s perspective, all projects look pretty much the same and require the same skill sets with only minor deviation.
But the business of contracting is made up of much more than demolition and drywall, so to speak. And when looked at from a business perspective, there are lots of reasons why a contractor might say no to a project. Reasons that can be boiled down into three broad categories.
Time frame: The customer’s job just may not fit into the contractor’s schedule in the time frame the customer wants the job completed.
Fit: The job may not fit the company business plan. In larger metro areas contractors tend to be much more specialized than up here behind the Redwood Curtain. In the metro areas its not uncommon to find contractors that only do bathroom remodels, kitchen remodels, decks, siding, windows, and nothing else!
Up here contractors tend to be more generalized, but they still have certain ideas about what “fits” them well. Some don’t like small jobs, for instance. Others only do new construction. Some focus on remodels, others prefer commercial construction, and so on.
Risk: All construction is risky. Our legal system system makes sure of that. But some jobs are riskier than others. To put it simply: the greater the number of unknowns, the riskier the job is likely to be. This is why many contractors stick with new construction. What few problems that do arise are (usually) easily remedied. It follows then
that renovation projects have a greater number of unknowns, and thus a greater degree of risk. And usually, the older the building the greater the risk.
The property owner(s) are also a factor in the risk calculus. Once the project’s risk factor is determined, questions going through the estimator’s mind are: Does the property owner have enough money to cover the likely contingencies? Are they going to be a “hard to please” customer? Does it seem to the estimator or contractor that a good working relationship with the property owner can be established and maintained throughout the project? For many companies, an answer of “no” to that last question automatically puts the project in the rejection bin. For others, it’s simply one more factor in the overall risk assessment of the project.
So yes, it can be difficult at times to find just the right contractor for a project. Especially if your project falls into the higher risk category. When you couple the needs of the contractor with your need to feel comfortable with the contractor you hire, it can be harder to find the right contractor than family physician.
Technorati Tags: remodel, renovation, new construction, choosing a contractor
