Time+materials contractor - ok?

11 years ago

I'm interested in feedback from people who have hired contractors on a time basis (where there is a weekly rate and the homeowner pays suppliers directly for needed materials, no markup, but possibly a trade discount), and whether the job came in more, less or equal to what fixed-price general contractors quoted. We are getting fixed price bids for adding a kitchen in an old brownstone (where currently it's just a laundry room, as the prior owners pulled out the old kitchen), from all but one person, a smaller operator who is more like a carpenter who does everything else in interiors except plumbing/electric and has a great eye for detail, who has a daily/weekly rate plus direct-pay for materials and whatever the electrician and plumber cost separately (he has people he works with who friends love and now swear by, or we could use different people). The time+materials guy does good work, I've seen more than one example, and heard from others positively. I'm told he guesstimates how many weeks it will take him and rarely is wrong. But it is still harder to budget for.

Thanks for any feedback.

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Comments (4)

PRO
Christopher Nelson Wallcovering and Painting
11 years ago
T&M for a big job would scare me.
greg_2010
11 years ago
A fixed price means that the contractor is taking the risk that it may be more work than he anticipated, so he builds that risk into the price.
A T&M price means that you are taking the risk. So it may be cheaper or it may be more expensive.
There is no hard and fast rule about which is better or else the other option wouldn't exist. It's all about your comfort level and your trust in the contractor.
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hosenemesis
11 years ago
I would not sign a time and materials contract unless the contractor was a relative or close friend.
Gina_W
11 years ago
It's better if you've worked with this person before, which you haven't. But you say you've gotten good references? I have worked this way a couple of times - right now actually, with someone I've worked with and who friends use as well. So I wouldn't dismiss the idea altogether.

From my (and friends and neighbors) remodeling experiences through the years, there are roughly three types of contractors -

- those who give you an estimate

- those who give fixed cost

- time and materials people

There are downsides to all these.

With those who give fixed cost - sometimes these guys are not good at bidding work, they tend to bid low in which case they screw themselves and may need to come to you for more funds during the job, or bid high to be on the safe side in which case they may not get your business. Look for a more detailed bid and a more methodical person for success in this scenario. Even experienced contractors can screw up here. This scenario helps if you are more methodical and knowledgeable as well - so you can see if anything is missed on the bid, or any item looks too low or too high. If I work this way, I let the contractor know up front that if unforeseen circumstances occur, or of course if I have changes I am willing to add to the budget, and then each day I like to go over the progress in a quick conversation or even email. So no surprises.

Those who give estimates - my least liked scenario. If I haven't worked with them before I tend to shy away from this, although for a large job an estimate is the best a contractor can do in some cases.

Time and materials is my favorite way to work now that I have people I can trust who I've worked with before. It helps if they are busy and have jobs lined up after yours so they have motivation to work more quickly. Not to say they work slowly - mine don't. But my current guy will work longer hours and Saturdays to get jobs done so he can finish and go on.

When you call references, ask detailed questions about budgets and time spent to help you decide.