02 Dec Follow this advice: That is only If you want a failed landscape lighting project
By Mike Gambino
Unfortunately, there’s a fair amount of “consumer awareness advice” out there that’s just plain wrong. If you want to hire a landscape lighting designer/builder contractor who is financially stable and will still be in business down the road when you are going to need them, this is the advice to avoid, and why.
Always Negotiate
A contractor who knows how to price their work properly won’t have room to negotiate. They’ve estimated the total cost of the project, then added on whatever they need to meet their overhead needs and make a reasonable profit. If they priced the job properly, What is left to negotiate?, unless you don’t want them to make a reasonable profit?
You can ask, but a contractor who knows their business will tell you that they’ll adjust the price if you adjust the scope of the work. I wouldn’t trust a contractor who’s willing to lower their price, because it means they didn’t quote me a fair price in the first place. What else are they doing that’s not trustworthy? A contractor who is operating without the proper credentials will definitely be more willing to negotiate, but at what cost to you?
Use Online Services to Find a Contractor
If you want to find a contractor, do the same thing you do to find any other professional: use Google. The best contractors in your area will have a website that allows you to learn who they are and what they do, see some photos of their work, and then make contact.
You’ll find contractors on Angie’s List, HomeAdvisor and Porch, but they are seldom the best contractors in the area. They will be the contractors who either pay for the lead or pay to advertise. Some online services even charge the contractor a percentage of the sales price; guess who really pays that fee? Think of online services as another advertising outlet, not a source of quality contractors.
Request a Detailed Breakdown of Labor and Material Costs for Each Part of the Project
This isn’t necessary if you’re working with a fixed-price contract because you were given a firm, fixed price. We’ve talked about itemizing estimates and transparency on our blog. It’s a wasted exercise for the contractor and for the client. If you don’t trust the contractor you’re working with, or if you don’t like the price they quoted you, don’t hire them.
Include a Penalty Fee in the Contract if the Completion Date Isn’t Met
This is only fair if you include a bonus if they finish before the completion date. I know the argument; they’ll rush to finish the job quickly to collect the bonus. Guess what? They’ll also rush to finish the job if it looks like they’ll have to pay a penalty. Go ahead and include a penalty as long as you include a bonus as well. Fair is fair.
Fixed Price and labor and Material (T & M) Contract Comparisons
There is a warning from some consumer rights advocates that with fixed-price contracts, the contractor might cut corners to stay on budget if their costs are higher than estimated. Keep in mind that this is also a risk if you negotiated down the price of the job, and it won’t happen at all if you hire a reputable contractor who knows how to price their work properly.
I strongly recommend against using a T & M contract. I disagree with the statement that “Most T & M contracts come with a guaranteed maximum price, or a ceiling on additional charges.” If they did, there would be far fewer disagreements, but there would also be many jobs left unfinished when the maximum price is reached before the project is completed. Labor and materials contracts should only be agreed to for work costing $2,500 or less.
Estimates
Most consumer experts neglect to tell you that you should expect to pay for an estimate on your project. It takes time to price a project, and many contractors are no longer willing to invest the time and trouble to compile an estimate for free. You’ll still see “Free Estimates” here and there, but many high quality contractors recognize that they are providing a service when they estimate your project and will ask you to pay for that service.
Pricing
So many contracting businesses fail: they don’t charge enough for their work.
Every contractor needs to calculate their own markup based on their overhead and profit needs, but to survive, most need to use a markup of at least 1.5 and many high quality landscape lighting contractors charge a much higher markup. That means they need to be adding at least 50 percent onto their estimated costs for a project. Price should not be the top priority when choosing a contractor; if it is, you won’t be dealing with the best contractors. Keep in mind that many of the contractor horror stories involve a contractor who disappears during a project. Other horror stories involve contractors who cut corners. The reason they disappear or cut corners is because they are broke and can’t pay their bills. The reason they are broke is because they aren’t charging enough for their work. In some cases, they needed your job to pay off bills from old jobs. That’s the risk you take when you hire a contractor with a focus on price.
For many homeowners, your home is your largest single investment. Hire a responsible, professional landscape lighting contractor designer builder you can trust, not a cheap one. They’ll protect your investment and you’ll sleep better.
This landscape lighting blog is published by Mike Gambino of Gambino landscape lighting inc. all 
rights reserved. Mike is a professional landscape lighting system designer/ builder and has been designing, installing and maintaining landscape lighting systems for more than 25 years. Mike resides in the Los Angeles area with his wife and 2 sons. To visit his website go to www.Gambinolighting.com . To inquire about hiring Mike please click here .
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