Cost factors for estimates by experienced contractors versus discount builders in Maryland, Virginia and Washington, D.C.
In a previous post, we discussed the how contractors determine the prices they charge for home improvement jobs. They generally break their estimate figures into thirds between (1) materials, (2) labor, and (3) overheads and profit. Why, then, do so-called design build firms and other higher quality contractors oftentimes offer higher initial estimates than their discount competitors? Are they simply charging more money for comparable work?