I'm in the middle of job replacing a good bit of damaged subfloor in a house. Basically it's an older home where they put 1/2" ply on the floor joists with 3/4" particle board on top of that. The particle board has gotten very wet in several places (entire kitchen, half of living room, 2 bathrooms, a hallway, 1/2 of a bedroom).
I figured on worst case scenario having to replace both layers of subfloor (1/2" and 3/4") but after some demo it was apparent that the majority of the 1/2" plywood is in good condition and doesn't need replacing.
The customer is asking if I am going to reduce my price since the materials are less and labor will be less now.
I'm not sure if I should do it or not. My train of thought is that if started the work and it turned out to cost me more than I expected I would not go to the customer asking for more money. So why should I give a refund when the job turns out to be easier than expected.
When I give a price that is the price I stand by even if I lose money, unless something very unexpected in encountered (I have a clause in my contract covering that).
What should I do? It's about an 8k job and if I discounted it I'm thinking maybe $500 or so.
Does your scope include replacing the 1/2 plywood? If so adjust the price to exclude the 1/2" plywood but only by the actual amount of labor and material.
Would be different if all the 3/4 and 1/2 plywood came up easily and you completed the entire scope of work then I would tell them no.
I have to agree adjust the price, I often try and quote high hoping to come in lower then provide it as a discount, makes the customer feel happy.
Always looks good when you quote 3 hours and it takes 2 and you reduce the price. And it works out that if it does end up taking me the full 3 hours they already knew the cost.
You want to be paid for materials and labor you didn't perform? Now had you replaced it all and you made good time then no, but since you didn't have to replace the material or provide the labor then yes. Discount it for whatever the price of material and labor was. leave a little extra in for your time if you had to return material ect.
If you were quoting to remodel a bathroom and you left the tub and surround in would you bill for that? The subfloors the same example. You shouldn't be billing for stuff you did not do.
If this was an agreed upon price to fix the floor, then no, I wouldn't lower the price. Ask them this question. "If the floor needed more plywood and labor than I expected would you offer to pay me more?"
If you had given specifics in the contract, such as replace 12 sheets at $xx and labor at $xx then I'd have to think about it.
You'll still have to return the plywood, which is labor and cost you money, so they aren't going to be getting back 100% of what the materials and plywood cost. Plus some places have a restocking fee, as high as 25%.
I must be doing something wrong, because I've had that exact thing happen without me saying a word. Actually caused the client to feel guilty when I wouldn't take more.
The one that boggled my mind though, was when a job I quoted at $2K turned out to be only worth $1500, so that's what I billed. They paid me the $2K plus a $400 tip, and absolutely refused to take no for an answer.
About 3 or 4 times a year I will knock off a couple hundred on some repair job that went well.
Long after people admire your quality workmanship they will remember you were cool and knocked off a few bucks becuase the job went easier then you thought.
But it seems like there is more to the story. I would guess that you gave too much detail to the customer in order to justify the cost of the repair. At any rate they know too much. Sounds like in any case, regardless of what you contract says, if you want to keep this customer happy, you are going to have to throw them a bone of some size.
Leo's suggestion allows you to be compensated for the time and effort in planning, purchasing and returning the materials. If they expect a full credit they are doing to you what they didn't want you to do to them. They don't want to pay for work not completed and you don't want to loose money planning and prepping for the worst case scenario.
Next time just tell them the their needs to be repairs to the subfloor and it will $X to complete. If that happens, then you simply have to say, "Did we repair you floor?". "Yes."
One of the problems us "legimate tradesman" have is contract writing. I would adjust the bill down. It will go a long way in future referrals. Just make sure next time you put a clause in there outling worst case or credit.
I always put a clause in contract for "unforeseen" work but make every effort in the sales meeting to identify the concern.
I had a customer rant to me recently about a flooring contractor who spent a week making tapered furring and subfloor not they did not plan because they didnt notice the tolerance were so out of whack with the carpet in place. The client was furious and said, "what if we didnt have the money?".
So I think about that and make sure I for warn them because we all know people dont read contracts and if they do they might not understand the math.
i have actually told a customer to his face when he asked for a discount----if the job went worse than expected could i charge you more?......that one didnt go well and the customer turned into my worst customer ever
on average i give $0 back.....under rare circumstances i do give a bit back...i had one the other day in which i made $3,000 for 6 hours work....the job looked horrible, but turned out well....i did give a $500 discount....i still made out like a bandit and i gave the builder a bit back.....for me its about sleeping well at night....if you totally over charged to the extreme (like my $3,000 for 6 hour job) i feel you should give a bit back.........if were talking a couple hundred over id give $0...if its thousands go ahead and give back a few hundred....
bottom line......is the loss of a referral be worth keeping the $$.......if you give back a few hundred will the customer BE A REFERRAL? or will he still be unhappy??
sometimes i keep the $$ because i know the customer wont be a good referral anyways.
go with your gut....your 100% justified with keeping all the $$....but there is still some grey area here...in the customers mind i guarantee its 100% black and white though...
One of the sweeter contracts I've seen basically says any reduction in scope, any other cost savings, the contractor and HO split the savings (T&M or just materials) 50/50. It's used as a selling point to the customers, and can beef up profit margins.
You could have just tore out the whole thing and replaced it, and collected your check. Doing others favors isn't always appreciated...
It's one thing for the job to go well and for it to take you 1 day instead of 2. It's another situation entirely when you've changed the scope of work. Change in scope = Change Order, either up or down.
On the same note, quit changing the scope in the other direction for free, you are pulling money out of your families pocket.
I would adjust the bill my man. I wouldn't want to pay for work that wasn't performed either. If you have to return material, then adjust for that. I always try to be fair even if it digs into my pocket sometimes. Karma called and she is a b.
You work out the details, but if you budgeted 3 days and 3 workers, the workers are getting paid, regardless if the job was easy or hard. You've passed up on other jobs that you could have been doing in the same time, because you were committed to this job.
I agree on cutting out the material costs, as you didn't use it, but time is money, and its time you allocated.Be reasonable, and be fair to yourself, and your customer.
Back a couple years ago we did the work on a contract addendum to a home inspection. Things went great and we knocked everything out in one day. Dad knocked $300 off the bill which was around 20% if I recall correctly.
The realtor who was selling the house was so appalled that we would reduce the bill because it went well. Say what you want to say about that.
We have done well over a million dollars business because of that $300 discount. This lady swears we are the best contractor she has ever seen. Gives our name to everybody, sends out emails to her neighborhood recommending us, etc. you get the idea... Sometimes you do the right thing and get rewarded.
I have had one good experience with Realtors. After a dozen or so encounters I began openly treating all but two realtors with the disdain I feel for them. I will not return their calls about work or give them advice or refferals to other trades or anything else.
I am also the first president in our HBAs history to not allow realtors to come to functions without joining and paying dues.
Same here. I have one realtor that I do business with and that's it. I have been burned, used and abused by too many. If he sends me I referral I know that I will get the job and get paid what I am worth. Other than that all of the others are just looking for a free cost reduction counter offer bid to line their own pockets.
Best way I found to stop them in their tracks and shut them up real quick is to tell them about the $250 charge for a detailed quote. Funny, they never call back.
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