We have received price quotations from two contractors to finish our basement. One is for $20,000 and the other is for $36,000. There is such a great price difference between these two quotations. Why is that?
This is not uncommon. Price quotations from contractors can vary widely. In our experiences we have seen prices between contractors vary as much as 50% to 150%. This is due to several factors.
Factors may include: How busy contractors are, the type of overhead costs they are carrying, if they use union or non-union workers, whether they use skilled or unskilled workers (and in some cases even illegal workers), what market niche they cater to, as well as various other factors.Because prices from different contractors can vary by such a wide amount, we recommend that you obtain a minimum of three quotes and thoroughly research their past work to choose the best contractor for your specific project.Created on 09/06/2014 Permalink