Is My General Contractor Trying to Rip Me Off?

general contractor pricing next modular goshen indiana

Recently we fielded an interesting question from one of our new home customers about managing his home building project. He shopped around, gathering quotes, trying to find a General Contractor. He soon discovered that there was quite a difference in pricing and he wanted to know why.

So, he asked one of the higher priced contractors why they were more expensive than the others.  Here is how they justified their higher pricing:

“the reason [the other builder] is so cheap is because they use cut-rate subs.”

An overpriced general contractor will always use this excuse to try to justify their inflated prices, but the real reason their prices are high is that they don’t want to take the time and energy to find high quality, reasonably priced subcontractors to work with. The reality is that anyone can open the yellow pages and call the first high-priced electrician they lay eyes on, but it takes real effort to find the best-priced subcontractors.

What to Look for in a General Contractor

There are several things you should look for in a General Contractor, but some of the more important things are as follows:

  • Find someone who will take the time to find the most qualified subcontractors at the best price.
  • Never accept anything less than a detailed list of charges.
  • Check to see that they are fully insured, and licensed.
  • Qualified Subcontractors

Oftentimes when you hire a big name electrical company that you heard about on the radio, they send out journeymen (ie: inexperienced) electricians to do the work. Then they send an overpaid manager to make sure the work meets the MINIMUM standards to pass inspection.

However, when you hire the small, reasonably priced electrician, more often than not the actual owner of the company is the one coming out to do the work, so you end up with a higher quality job in the end.

At Next Modular, we take the time to build lasting relationships with small, high-quality mom and pop subcontractors who truly pour their heart and soul into their work, and pass those savings along to you.

Flat-Rate General Contracting Fee

When it comes to the site work (foundation, septic etc.), we charge a flat rate General Contracting fee to run the job. Many other builders will just give you a lump sum, and you have no idea what anything costs on a line-by-line basis. We like to be a lot more transparent than that.

Should My Contractor Have Insurance?

Another thing to be cautious about is a contractor’s insurance policy. Not only should you general contractor carry plenty of insurance, but all their subcontractors need insurance too. Without proper coverage, a single accident can become a financial nightmare for a new homeowner.

At Next Modular, we carry $2 million dollars worth of general liability coverage, and we only work with licensed and insured subcontractors.  We make all my subs send us a certificate of insurance to prove that they are adequately insured before they can work on our jobs.

Why is Next Modular less expensive than other General Contractors?

We cost less because we hire local subcontractors that we know. We pride ourselves on finding the most-qualified people who truly care about the work they do. Not only that, WE care. You will often find the owner of Next Modular at the job site, personally handling the details of your project. Give us a call and let Next Modular manage your home building project.

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