Repair Estimate

[dhill]

I had a guy call and ask me if I would give him an estimate for repair work on his manufactured home for insurance purposes. He lives a few miles out of town so he described the damage to me so that I could get an idea of what kinds of repair are needed. He wants the estimate on my business letter head. Here's my concern. From the description, the materials for repair are only going to cost about $100. Labor would probably be about the same, and that's completely subjective. For the sake of the insurance pay-off, he needs the repair estimate to be about 4-5 hundred. I'm not sure that I want to over-estimate that repair job just so he can collect from his insurance. Is this an ethics issue or a liability issue if I pad the estimate so that his insurance will cover the costs to him? I've decided that I'm telling everyone in the future that I won't give estimates unless I'm guaranteed to do the work, and then the estimate will be true value, not inflated. If the estimate is less than the homeowner's deductible, I'm not going to float the estimate for them. Thanks for the replies.
Dusty

[plunkinberry]

I don't know that requiring the work for an estimate will work, but I understand your perdiciment. I would give an actual cost; don't inflate it.

[dhill]

Thanks, plunkin. If I wanted the extra work, I definitely wouldn't tell people that a guarantee for the work was required for an estimate. But I don't have time to mess with these small repair jobs. It's not in me to do a repair that takes 30 minutes of work and then to charge 5 hours labor, and I'd have to charge that much to make it worth my time. So if I say, I'll give an estimate, but only if I'm gauranteed the job, maybe no one will ask for the estimate :) I've given these estimates on a couple of occassions and it doesn't serve me any purpose. I'd rather people call and say, hey, I don't have much money to fix this stuff, can you cut me a deal? I've done many repairs for less of nothing when people are honest with me and need the help. I'd rather work in that way than to try to help someone get something out of their insurance company. So, yes for sure, actual cost estimate only, and if I can't give an actual cost based on the info that I have, I'll decline to give anything.

[VALENT]

And not only that, once you quote a job like that(for a favor) you never know who will see the quote and wonder why you charge so much. Your reputation could suffer for no reason.

[Cole]

Dusty, dont do it.

Trust me.

[dhill]

Thanks, guys. I'm all for helping the homeowner, but some of these people have a different agenda. I'm thinking silence is golden in this instance for sure, and in the future, I'm not doing any quotes unless I can look at the site and determine exactly what needs to be done.

[Cole]

I'm thinking silence is golden in this instance for sure, and in the future, I'm not doing any quotes unless I can look at the site and determine exactly what needs to be done.

Good for you.

I once did a framing job for a pastor/builder. He wanted me to inflate my price $40k.

He is in jail now for fraud.

[Tom R]

Once I gave a guy a (free) written estimate for an insurance job, - - if I remember right it was about $7,000 - - several months later he calls me, - - says he's got a problem, - - the check is written to both our names, - - but he decided he's going to use it to take a little vacation, - - the guy actually has the audacity to ask me to come over and sign my name, - - yeah, right, - - never heard from him again, - - for all I know, - - he signed both our names, - - but I know I wasn't gettin' involved.

Generally, - - I can almost guarantee you, - - when the first words out of someone's mouth are "I need a written estimate", - - they've got ulterior motives, - - whether it's pocketing insurance money, - - or 'cross-checking' the estimate of the guy who's really going to do the work, - - or sometimes even giving the job to their poor unemployed brother-in-law, - - who supposedly knows how to do the work, - - but needs you to figure out how much he should charge.

I've run into many of these situations through the years, - - now I've just changed my overall policy completely, - - though my estimates are free, - - putting them on paper will cost you.

[giddonah]

I'm reminded of a line from my favorite movie- "Real Genius"

"Fraud is a Felony"