Why does a remodeling project seem to be so expensive? Well, there are a lot of things–seen and unseen–that go into a project that contribute to the seemingly high price. There are plenty of factors that affect expenses. Here are some of my top home improvement costs to consider in Phoenix, Arizona.
Labor, especially skilled labor, is the biggest cost factor on any job. We’ve all seen low quality workmanship. Whether performed by a homeowner or a handyman there are plenty of examples around us of work that lacks all manner of mastery. You’ve also probably heard, you get what you pay for.
Skilled craftsmen spend a lot of time perfecting what they do as well as invest a lot of money in all the specialty tools they need to excel at their specific trade. Their skills are extremely valuable and this is one reason home improvement projects can seem pricey.
Insurance is another cost to consider. Contractors are required to purchase costly general liability and workman’s compensation insurance. These policies are designed to protect homeowners from workers who may be injured or accidentally damage property while remodeling is underway.
If you’re unsure whether your contractor and subcontractors are licensed, bonded and insured, just ask them to provide you with their certificates of insurance. It’s important to verify so that in the event of an injury or accident on the job you, the homeowner, are not held liable.
Taxes also have a major impact on the overall cost of a remodeling project. Like insurance, taxes are another element that can only be seen in the price. In addition to corporate taxes, and employment withholding taxes for every worker on the job, contractors must pay city and state sales taxes on everything they buy for your project, all of which are built into the price.
All of these are indispensable yet substantial expenses related to your remodeling project. Some contractors, in order to get more jobs, lower costs by cutting corners and avoiding some or all of these expenses. Please keep in mind that a low bid may not always deliver the greatest value. Understanding home improvement costs to consider will help you make the best decision for your build.
At Rictor Contracting we pay as much attention to what’s in the walls as we do to what’s outside of the walls, and we always comply with every building safety code. As always, for help with any projects around your home, feel free to contact us at (623) 842-5413.