can a builder be too cheap?

brians_daughter

ok, i know we're MSE on here, but can a builer be TOO CHEAP?

We have had quotes for a small extension (foundations already in place). We have had 2 quotes at £13,00 1 at £10,500 and then one at £7,500!

The lesser quote is from a friend (mates rates) who has been in the trade 20 years but has, 12 months ago set up as SE and is really short on work so his price stands for the next month or so until he starts a big job.

We have had breakdowns from the cheapest quote and 1 of the £13,000 quotes and the materials are all coming in there or there abouts so its not as if the friend has missed out any major expenses or anything but it just seems too cheap iykwim?

I have expressed my concerns as i dont want his to start then realsie hes charged us far too less nor do i want him to cut corners to do it cheaply (explained all this too him) and he is confident he did his extension (same house, same extension) plus what he would charge for labour and it will not be over £7,500....I am happy for him to do the work as i have seen work he has done and spoke to ppl who have employed him and it all seems to check out etc. I just have a feeling that it will end up costing more. I do have around 15% extra set to one side on top of the £7,500 just incase, but i cant help thinking its too good to be true?

Innys

I'd take him up on his offer, but beware you may be gazumped if someone else offers him a contract paying more in the meantime. Better make sure you draw up a written contract.

bertie200

we recently had a builder do work for us which was around £2k less than other quotes,

this builder had been recommended by a local firm, so we went with it.

superb job done, quickly, reliably and professionally, also gave a guarantee. the quote was so low and we were so happy with it that
we actually paid him a bit more.

latecomer

In general yes, but in your circumstances I would probably go with it given he;s a friend, provided you trust him to stand by him word. As others have said, what will happen if he gets offered a big job somewhere else at full rates.

liam8282

brians_daughter wrote: »

We have had quotes for a small extension (foundations already in place). We have had 2 quotes at £13,00 1 at £10,500 and then one at £7,500!

I do have around 15% extra set to one side on top of the £7,500 just incase, but i cant help thinking its too good to be true?

So you have £7,500 + 15% = £8,625 = You can't afford the other two quotes.

You could go back to the other builders and see if they are negotiable, or why they are higher.

It is true that a lot of builders are struggling for work at the moment, so they can offer to do work a lot cheaper. Supply and demand, and all that.

Remember also that builders will be getting trade discounts on materials, so the cost you see may not be the actual cost they pay and there may be a mark up on materials, if the builder recommended to you has just done an extension he may already have some left over materials he can reuse on your extension, which would also bring costs down.


Another thought, are the other builders VAT registered?

Ihatecameron

ok, i know we're MSE on here, but can a builer be TOO CHEAP?

Anyone who goes in very low should be treated with great suspicion. It is a ruse to get the contract, once they start work they will have you over a barrel, there is no going back once you agree to let them do the work, (well there is but it will cost you far more to get someone else to continue the work) then you will see the costs spiral and if you do not pay they walk off the job.

What you need to find is a reputable builder, one that is in work. There is a reason for this, good builders are hard to find because they are always in work, cowboys are 10 a penny and can start at a moments notice and surprise surprise, they are dirt cheap.

ormus

thats why you agree to a stage payment plan, in advance of the work starting.
and retention money at the end of the job.

Ihatecameron

ormus wrote: »

thats why you agree to a stage payment plan, in advance of the work starting.
and retention money at the end of the job.

And if they say they have mistakenly under priced the job, more work needs doing and they need more money, what then?

McKneff

If they give a written quote they are legally obliged to do the job for what is quoted, dont accept an estimate.

And get everything, but everything in writing and with a guarantee

Ihatecameron

Easier said than done, at the end of the day the last thing you need is a court battle to prove a point. Better to hire a reputable builder in the first place even if he is more expensive, it will be cheaper in the long run.

redlee

Just because he's quiet doesn't mean he's no good - that may have rung true in the past few years. Jan-March are generally slow for most trades, this year seems to be far worse than normal.