Qshake: The homeowner asked for an average cost of replacing a cracked beam in an old house. Very little info to go on. You suggested he get a contractor over (bypassing the engineering) and essentially "use" the contractor to get a free estimate and an outline of the work to be done. As far as debt goes the homeowner is not "in debt". If he goes directly to a structural PE and events unfold the way you outlined them the PE has provided a valuable service and has been paid for his work. No debt as the homeowner now has something of value in place of the dollars spent. A cost yes....no debt. The homeowner can now solicite bids from contractors. Some will charge for their work and some won't. In each case an expense is incurred by the contractor. He either makes it up by spreading it over all jobs awarded or charges the homeowner directly. The current trend is to make one site visit at no charge. Salesmanship comes into play here. If, as in the original scenario you suggested, the contractor is the first contact of the homeowner a ball park estimate may be given but is worth little. Step 1. We start with a design contract. We would provide some details and engage an engineer. If the project stops there then we are paid for our time and so is the engineer. Step 2 is the Cost Analysis. It can't be done without the design. It is detailed and takes considerable time (pulling subcontractors together, checking material prices, schedules, etc.) If the homeowner goes no further he has a comprehensive package of what each part of the project involves. If the beam is in a finished basement, is wrapped in drywall, textured and painted but this owner is not using the basement for anything other than storage he can choose to delete the framing, drywall and painting and put that money elsewhere (repair landscape damage for instance). Finally, Step 3. The homeowner can proceed with the work and usually will engage our services. By this time the homeowner has a good idea of whether they have the level of confidence in us to do the job. If they don't or if we feel that the "partnership" won't work out from our end everyone can go their way with no hard feelings. When the homeowner contacts another contractor the engineering will be done, the Cost Analysis done (maybe the scope of work will be smaller) and the cost of doing the work will be close. The homeowner is much more knowledgable about the cost and disruption of the project and has received value for money spent. No debt.
The present day system you describe with the contractor working for free is fast becoming the "prior system". The definition of an estimate may be the sticking point. It too is seeing increasingly limited use. It would not be found in a contract. These day an estimate is a guesstimate or ballpark. We provide those is some cases (verbal only) because some homeowners have no clue as to what is involved. A good example would be the difference in window installation on new work vs replacement. On new the framer puts in the rough opening and the "installer" unboxes the window, levels it up and puts in the fasteners with a few pulls of the trigger on his nail gun. A replacement requires furniture movement, site protection inside and out, removal of the original (now covered with brick, maybe a window guard, drywall return and a delicate sill) The replacement is custom made for the opening (more expensive) is more difficult to install and clean up is more extensive. If the homeowner has watched a house built on the lot next to his he has no clue. So when we tell them it will be $1,000 per window (ball park) they may respond, "I had no idea". That's about all the estimate is worth. We have to tell them why it costs that much.
It is perfectly reasonable that the homeowner should chose the contractor they feel most comfortable with. We don't think that is the one that is cheapest or the one that will provide details later. We give them everthing up front and they appreciate the work we put into it. Our method allows us to eliminate the tire kickers, and we don't have to jack up our rates to the real customers just to cover our costs. We also want to still be in business so that we can handle any problems our clients may experience. The cut rate guy won't be there. It's good business for all concerned. Odin
