Choose a flat fee or hourly rate to keep costs low.
Depending on the scope of the project, a flat fee or an hourly rate may be more cost-effective for the homeowner. However, the choice must be fair to both the contractor and the owner. Does this Spark an idea?
Flat Fees
When the scope of work is well defined and there is a series of objectives to be met, a flat fee for home repairs is the best form of payment to a contractor.
Hourly Rate
If a home repair project cannot be delineated easily or the requirements are not known, then an hourly rate is best for the owner and contractor.
Comparisons
Both a flat fee and an hourly rate can provide adequate compensation to a contractor for work provided. The flat fee requires a quote for services, and the hourly rate must be provided with an estimate of the number of hours to complete the home repairs. The cost associated with both methods can be revised if there are changes to the scope of a project.
Contrasts
The flat fee requires a contractor to foresee how a project will be completed on budget, whereas an hourly rate allows flexibility when the budget or work required changes. Without revisions to the agreement, a flat fee can be unfair to a contractor if there are additions to the scope of work. However, the owner may be adversely affected if the contractor does not keep to a minimum the hours worked.
Conclusion
Both a flat fee and an hourly rate are appropriate for home repairs. Both the owner and the contractor must agree upon the method chosen, and it must be appropriate for the scope of work. In either case, a written agreement should be made between the two parties.
Tags: hourly rate, flat hourly rate, flat hourly, scope work, Both flat, Both flat hourly
