Free Estimates – A Curse Or A Blessing? - William C. Rott & Son

Free Estimates – A Curse Or A Blessing?

The recent winter storms have caused a deluge of calls for “free estimates”. The majority of homeowners all across America have traditionally been drawn to the magical words “Free estimates”!

As a family owned business that started over 100 years ago, the challenge is ever ending to find the 60% of homeowners who want a good job at a fair price and in fact know the real value of the word free.

These people look beyond the words for value, longevity and integrity. The dilemma, legitimate contractors face is a lot of people have no regard for his time and expenses. He gets calls from homeowners asking for estimates just to get an idea of what something would cost.

Other homeowners need a legitimate written estimate in order to get a loan or insurance monies so they can do the work themselves, or hire a friend or fly-by-night person to do the job. And some contract with under insured sub-contractors who tell the homeowners to get the permit under their own names, then hire them to do the work to save some money. Other insurance adjusters tell homeowners to get at least three estimates, then in most cases take the lowest one. Some won’t even take the lowest bid, but tell the homeowners they can get it done for less by someone else and in these instances the homeowner has no idea or input into the quality of repairs. Some insurance adjusters will compromise the quality of storm damage repairs to save the company money. With these facts in mind, homeowners need to understand the time and expense of dealing with insurance companies sometimes require 3-4 phone calls and job site consultations and thus, a fair fee for these written estimates is essential to cover minimal costs incurred.

You would in the long run you would be better served to seek out a maximum of three contractors to bid your work and often one is enough. Why? Discerning homeowners know that a good quality contractor’s time is valuable to him and to his customers. Forcing legitimate business people to waste their time giving comprehensive estimates when you really aren’t going to give him the work, truly raises the cost of doing business to everyone.

Over the past 40 years the Erie County Consumer Protection board has hosted a dozen hearings to determine what are the reasons why so many homeowners get “ripped off” in WNY. After carefully investigating almost all of these complaints the homeowner got several “free estimates” and inevitably took the cheapest price – more laws will never change this phenomenon.

The Home Improvement Council of WNY has for over 45 years conducted hundreds of arbitration to resolve disputes between its contractors and homeowners. We have seen both satisfied and dissatisfied homeowners.

There is a clear cut pattern to both.

Generally, most dissatisfied home improvement projects evolve around homeowners limited their focus to:

[How much will the project cost?] and [when can the work get started?]

The Council and other recognized authorities strongly suggest the Four Keys to Successful Home Improvement:

  • The Contractor – Who is this company and the owners? Are they really qualified? How long have they been in business under this ownership doing the work you need? Are they truly “completely insured” for your protection? A minimum of one million dollars comprehensive liability. Are all their workers their employees on your job protected by workmen’s comprehensive insurance? If they use sub-contractors, are their men completely covered? You can lose everything if you don’t demand to see these insurance certificates before signing a contract. Do they provide a written proven long term workmanship warranty? Automatically reject any contractor who cannot prove proper and adequate insurance. What is, in fact, their track record on warranty complaints? Automatically reject any contractor who says he never had a complaint.
  • The Project and problems – What are the best solutions and options available for the project and/or repairs? Ask for detailed, written specifications on how the work is done, and how long it will take. this is essential.
  • Materials – How do you select the most appropriate materials for long term durability and appearance? (Remember the best material available not installed properly will likely fail in just a few short years).
  • Price – How do you determine what is a fair price and a legitimate price for the work to be done? Some contractors deliberately quote a price to get the job and after the job is started find ways to charge you more. Keep in mind, on rare occasions hidden damage will arise and you surely don’t want it covered up just to stay on budget!
Select a contractor as carefully as you would your doctor or lawyer. An established and qualified contractor has just as much integrity and value as these professionals and you normally wouldn’t ask them for “free estimates”..

A Curse or a blessing –Free Estimates

The past winter storms produced a deluge of calls for “free estimates.” Homeowners across America have traditionally been drawn to the magical words in advertisements and phone books for “Free Estimates”!

As a contractor managing a family business, which started over 90 years ago, the challenge is never-ending to find the 60 percent of homeowners who want a good job at a fair price and who know the real value of the word “free.”

These people look beyond the words for value, longevity and integrity. The dilemma legitimate contractors face is a lot of people have no regard for their time and expenses. We get calls from homeowners for estimates just to get an idea of what something would cost.

Homeowners also need to understand the time and expense of dealing with insurance companies sometimes require several phone calls and job site consultations. Thus, a fair fee for these written estimates is essential to cover minimal costs incurred.

“Attention Homeowners!” (a phrase that often appears with “Free Estimates”) in the long run you would be better served to seek out a maximum of three contractors to bid your work, and often one or two is enough. Why? Over the past 40 years, the Erie County Consumer Protection board has hosted a dozen hearings to determine what are the reasons why so many homeowners get “ripped off” in Western New York. After carefully investigating, almost all of these complaints the homeowners got several “free estimates and inevitably took the cheapest price.

More laws will never change this phenomenon. The cheapest estimate is not necessarily the right estimate for the homeowner.

For more than 35 years, The Home Improvement Council of Western New York has conducted hundreds of cases of arbitration to resolve disputes between its contractors and homeowners. We have seen both satisfied and dissatisfied homeowners.

There is a clear-cut pattern to both. Generally, most dissatisfied home improvement projects evolve around the homeowners limiting their focus to the question: How much will the project costs, and when can we get the work started?.

The council—and other recognized authorities—strongly suggest these Four Keys to Successful Home Improvements:

  • Ask about the company/contractor – Who is this company and its owners? How long has it been in business? Under this ownership? How long has it been doing the work you need? Is it “completely insured? for your protection? Are all the workers employees of the company and protected by workmen’s comprehensive insurance? You can lose everything if you don’t demand o see these insurance certificates before signing a contract. Automatically reject any contractor who cannot prove proper and adequate insurance. Does the company/contractor provide a written long-term workmanship warranty? What is, in fact, their track record on warranty complaints?
    Automatically reject any contractor who says he never had a complaint.
  • The Project and problems – What are the best solutions and options available for the project and/or repairs? Ask for detailed, written specifications on how the work is done, and how long it will take. this is essential.
  • In regards to materials – How do you select the most appropriate materials for long-term durability and appearance? (Remember, the best material available, if not installed properly, will fail in just a few years).
  • Finally, in regards to price: How do you determine what is a fair price and a legitimate price for the work to be done? Some contractors deliberately quote a price to get the job and, after the job is started, find ways to charge, hidden damage will arise and you surely don’t want it covered up just to stay on budget.
Select a contractor as carefully as you would your doctor or lawyer. An established and qualified contractor has as much integrity and value as these professionals, and you normally don’t ask them for “free estimates.”

“Homeowners who want a good job at a fair price know the real value of the word “free”.

William C Rott, Jr., C.R.C., president of William C Rott & Son, Inc. is past chairmen of the Home Improvement Council and of the Contractors’ Network of America.