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Trade rates
Introduction
How to get good service from your tradesperson and resolve disputes.
What's the best way to find a builder, plumber or electrician? Choosing purely on price isn't always the best policy. We explain why, and detail how to brief your tradesperson and go about getting a quote or estimate.
And if things do go wrong, we look at your options for resolving the problem.
Hiring a tradesperson
How important is price?
It's not always good policy to look for the cheapest – a skilled tradesperson might charge more but take less time and do a better job.
Large franchise operations may charge more to cover the costs of training technicians and buying top-quality equipment. However, if it's just a small job, you don't want to pay top dollar.
Word of mouth is the best way to find your tradesperson.
Ask friends or neighbours who've had work done recently for a recommendation. You could also ask the relevant trade association. Membership of a trade association doesn't guarantee good-quality work, but if things go wrong the association should help resolve the situation.
Check the tradesperson is qualified to do the work.
Plumbers and electricians must have a current practising licence.
Ask for the names of satisfied customers or for references.
With builders and painters it helps to see examples of work that was done less than a year previously.
Briefing the tradesperson
For a large job, prepare a written specification of your requirements. It should include:
- The work to be done. You may need drawings for this. It's important that the job description is as clear as possible, as many disputes arise from misunderstandings.
- Start and finish dates.
- Special requirements – materials or standard of work.
- An agreed schedule of payments, especially for projects that may take some time.
- Cleaning-up responsibilities. Your contractor should have insurance to cover any damage caused by the work.
- Require that you be advised before any extra work is done.
It is your responsibility to have the required consents.
For a small job around the home, all that's required is a few written notes on what's to be done and an expected time-frame.
Always take notes (and date them) at each meeting with your tradesperson.
Quotes and estimates
For a large job, ask 3 companies for a written quote.
A quote is a fixed price that won't vary unless you agree in writing to unforeseen extras. It should list the work to be done, the materials to be used and labour costs, and give proposed start and finish dates.
For building work, check that council levies are included in the quote.
Be wary of quotes that are much lower than the others as it could mean the low tenderer has misunderstood the project or is relying on "extras" to make a profit. If it is hard to get a fixed quote because there might be more work required, ask for a basic quote and an hourly rate for any extra work.
For a small job, get an estimate.
An estimate is more flexible than a quote as it's only a guess at what the job will cost and the tradesperson is not bound by it. However, it should be within 10 to 15 percent of the final cost. If the work is being done on this basis, make it clear you must be consulted before any extra costs are incurred.
All quotes and estimates should be in writing.
They should be signed and dated and should state whether GST is included. You should both sign and date the document to establish a contract. Make sure any variations are in writing.
If you get a job done and no price was agreed, under the Consumer Guarantees Act you are not obliged to pay more than is "reasonable".
Never pay out all the money in advance.
But it's common with bigger jobs for the customer to pay an initial deposit and/or instalments as work progresses.
Trade by trade
Which tradespeople are paid the most, and why?
Auto mechanics were the highest-paid tradespeople in our last survey in 2007 – "a direct reflection of highly skilled technicians and specialised service equipment" was one comment. And it was generally more expensive to take your car to a franchised car dealer than to an independent repair service.
Plumbers, especially those who provide gas-fitting services, were the next highest paid. Around half of them charged extra for gas fitting. Why? One said the reason was "training and course-work costs". Scarcity could be another reason – only 52 percent of the plumbers we surveyed were gasfitters.
On average, appliance repair rates were higher than those charged by electricians. The number of repair services in our surveys is falling. In 2004 some told us there'd been a reduction in demand for general electronic servicing – it was easier to replace cheap appliances than repair them. Most of the services in 2007's survey repaired large appliances such as washing machines and refrigerators.
Builders and painters charged the lowest rates. Several complained that competition from the unskilled and the "black market" was keeping down prices.
Of course, hourly rates varied across the country. Auckland had the highest average rates, along with Hamilton and Rotorua. South Island rates tended (on average) to be lower.
Other charges
Travel
Rising fuel costs are a heavy charge on trades. 66 percent of our survey's respondents charged separately for travel; others charged their hourly rate on a job from the time they left the depot until the time they returned. Electricians (87 percent) and plumbers (88 percent) were the most likely to charge you for travel. Painters (32 percent) were the least likely to do so, which may reflect stiff competition in their trade.
Travel within a centre usually incurred a flat charge, while out-of-town travel was charged per kilometre. Christchurch had the highest per-kilometre rates. Auckland had the highest flat charges.
Minimum or call-out charges
Nearly all appliance repair services had a call-out charge. More than 70 percent of electricians and plumbers had one – and some also charged more for after-hours work.
Resolving disputes
Even with the best will in the world, things can go wrong in your dealings with tradespeople. If you can't resolve the problem directly with the company concerned, you have several other options:
- Contact their trade association – these organisations often investigate and mediate over complaints.
- If there is any dispute with your council over whether the contractor has complied with the Building Code, you can apply to the Department of Building and Housing for a determination.
- If there's less than $15,000 involved, you can take a case to a Disputes Tribunal. (The limit can be raised to $20,000 with agreement from both parties).
- If your dispute is large, you can take legal action – though the court process can be lengthy and expensive so should probably be tried only as a last resort.
More information
More from Consumer.org.nz
More from ConsumerBuild
Report by Bev Frederikson.