We hate to say it, but it’s not always easy to find skilled laborers you can trust. One of the main reasons ARC Construction has proudly served the Jacksonville community for almost two decades is because we build relationships based on trust. When we give you our word, we keep it. It’s been our mission since the very beginning to deliver top-quality commercial construction services at an honest, affordable price. If you’re about to hire a contractor with whom you aren’t familiar, here’s how to avoid shady business practices.
Misleading Contracts that Include Hidden Profit Centers
If you receive a bid from a contractor that’s incredibly vague and difficult to understand, it’s important to do your due diligence. When a contractor breaks down his pricing for anticipated work, it should be clear cut and to the point. Legitimate subcontractors won’t bid on undistinguishable contracts, which means a shady general contractor may create a fake bid at a ridiculously high price to increase the cost of work.
Your guard should go up right away if you see work billed on a lump sum basis or notice any of this terminology:
- Clean-up as needed
- Miscellaneous blocking
- Coordination of LEED dumpsters
- Punch list coordination
Shared Savings is Rarely a Straightforward Set-Up
Sure, this sounds like a great idea for everyone involved. If you work with a general contractor who proposes a shared savings bonus, they may end up manipulating estimates to create savings that result in a bonus. Shady, sneaky and something to look out for.
For example, a contractor may bill you for a $200,000 shared savings bonus. If you revisit the original estimate, the contractor may have increased the subcontractor bid amounts substantially to create the illusion of “savings”, resulting in a bonus.
Additional Enhanced Fees to Look for
We don’t want you to go into your next project assuming someone plans to take advantage of you. Chances are, you’re in good hands. Of course, it’s always smart to educate yourself on the intricacies of certain business dealings. Here are a few other areas where your contractor may exceed your budget:
- A general contractor could over-quote items within the payroll burden charge. They may overstate non-reimbursable expenses like pensions and health insurance.
- The contractor could submit material bills, claim the items were used for the project then return the materials and pocket the refunded money.
The best way to avoid these murky charges is to only create and sign easy-to-understand contracts.
Trust Your Project with Jacksonville’s Leading Commercial Contractors
Most contractors around Jacksonville are honest. In our 15+ years performing work around the Bold City, we’ve had the pleasure of meeting and working with some really great crews. But for every honest businessman, there are 10 dishonest guys to give the industry a bad rap.
ARC Construction places honestly, loyalty and professionalism above all else. We work hard to provide the best possible services at a price anyone could understand. We’re in this business for the long run, and the support and trust of the community are invaluable.
Let’s chat about your next project! Reach out to us here.