I AM ASSUMING YOUR QUESTION IS: YOU HAVE THE CHOICE AT TWO SUBS
ONE PRICIER YET BETTER AND ONE MUCH CHEAPER YET INCONSISTENT?
RISK MANAGEMENT
VARIES:
BUSINESS PHILOSOPHY OF CONTRACTOR WITHIN SPECIFIC MARKET NICHE: HIGH OUTPUT LOW COST DEVELOPMENT>LOWER MARGINS FOR CONTRACTOR AND RISK OF HIGHER MARGINAL ERROR
EX: HIRE CHEAPER FRAMING SUB, THEY FALL A DAY BEHIND, ARE RUSHING TO CATCHUP TO SCHEDULE, AND ULTIMATELY STUDS ARE OUT OF PLUMB ON ONE WALL CALLING FOR WALL TO WALL CUSTOM CABINETS-
YOUR DRYWALL IS HUNG-CABINETS MEASURED ON SITE AND ON ORDER. ISSUES ARRIVE WITH CABINET DELIVERY AND TECHNICIAN AND YOUR CRITICAL PATH IS AFFECTED.
COST ANALYSIS: OUT OF PLUMB WALL VS DIFFERENCE IN THE TWO FRAMING COMPANY’S ORIGINAL BIDS ON PROJECTS.
I believe the cheapest price isn’t always the best contractor. It generally comes down to the cheaper has less experience and want the job more. But when you pay for cheap you generally get cheap quality. You pay for what you get.
Your expectations and tolerance for possible problems that cost more in the long run answer this. We are quality oriented so my opinion is skewed but I’d personally rather pay a solid co to do right and handle inevitable issues. I have seen “run and gun” co do good work but the margins for error with that catches up.
Choosing a subcontractor is like choosing a business partner. A subcontractor must fully stand by his work, meaning if there are issues with the job down the line that he will be responsible enough to come back and right those wrongs. Nothing is ever just about price. Reputation counts more than anything in regards to choosing a subcontractor. This includes past performance as well as present performance and expected future performance. Of course, better subcontractors will be more expensive. But, as the saying goes, “you get what you pay for.” If you are willing to take on a subcontractor who doesn’t have insurance and isn’t licensed for a lower price, you are risking a lot and most likely will have to pay out of your own pocket to cover that insurance if you are a general contractor. How well the subcontractor deals with homeowners is critical as well. You want to make sure you are hiring someone who knows how to handle customers, the good and the bad. You also let the subcontractor know that you are not going to pay an extreme price and that there are many other subcontractors out there willing to bid lower prices in order to keep his proposed price fair and honest. The biggest mistake someone can make is choosing a subcontractors solely on price. You are risking the quality of the job, the satisfaction of the homeowner, the safety of the workers, and the reputation of your own company.
We would recommend past performance due to the critical nature of project completion and quality. We have found Quality results deliverd on Time is the most important factor in any project.
Cheap price may not always give best quality. Of course if the diff isnt that much in price, its to go with whichever. But if the diff is a lot, i wouldn’t recommend using past work pictures
Performance is the most preferred from conversations we have had with our home owners.
If all you are looking for is the lowest price then beware of the end results or if you
ever get to that point. Keep in mind that a quality product takes time and planning then more time.
Most home owners have either heard of a horror story or two or have had one bad experience
of their own, Its always worth paying a little more if the reputation and quality of work is there.
Past performance is always key to whether or not your going to get the best bang for your buck. If the Price is an issue think of it this way. Do you want to have the hassle of having someone do something incorrectly and you’ve paid them? Do you want to have to pay 2 people for one job? These are questions that make you consider consistency, and time the particular Sub has been doing what he/she has expertise in. There is a phrase when working out "do it right, do it light, do it wrong do it long. So make it a one time thing and pay attention to Past Performance, pay for the work that you want.
