ℹ️ Consumer Alert: Contract Pitfalls
The Scope Loophole
(The "Allowance" Trap)
Executive Summary
- THE RISK:The "Low Bid" often wins by verifying almost nothing, then charging for "Upgrades" later.
- THE CAUSE:Vague "Scope of Work" and unrealistic "Allowances."
- THE FIX:Fixed-Price Contracts with granular detail.
The "Trojan Horse" Bid
You get three bids for a bathroom remodel:
Contractor A: $15,000
Contractor B: $16,000
Contractor C: $10,000
You hire Contractor C ("What a deal!"). Mid-project, he stops.
"Hey, the contract covers 'standard tile.' You picked the nice stuff. That's an upgrade. +$2,000."
"Oh, the contract didn't include painting the ceiling. +$800."
Final Price: $18,000. You paid more than the high bid, and suffered through weeks of arguments.
The Allowance Trap
A shady contractor puts in a low "Allowance" (placeholder budget) for materials.
Example: "Tile Allowance: $2.00/sq ft."
Reality: Decent tile costs $5.00/sq ft.
You are guaranteed to go over budget the moment you sign.
📝 The Litmus Test: Look at the "Scope of Work."
Bad: "Remodel bathroom. New tile, vanity, toilet. Paint."
Good: "Demolish existing fixtures. Supply and install 50 sq ft of porcelain tile (Model #1234). Install 48-inch Vanico Vanity."
Bad: "Remodel bathroom. New tile, vanity, toilet. Paint."
Good: "Demolish existing fixtures. Supply and install 50 sq ft of porcelain tile (Model #1234). Install 48-inch Vanico Vanity."
No Hidden Costs.
We filter for pros who use transparent, line-item estimating.