Electrical Contracting Ethical Dilemma

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xptpcrewx

xptpcrewx

Power System Engineer
Location
Las Vegas, Nevada, USA
Occupation
Licensed Electrical Engineer, Licensed Electrical Contractor, Certified Master Electrician
A friend of mine received a quote from a licensed electrical contractor the other day to add/modify some circuits to his home. The estimator came out and quoted the job at an elevated price, then immediately suggests he could do the work for 33% less if my friend contracts with the estimator directly in cash (behind the company's back). The estimator divulged the company's profit margin, fees, and overhead costs as justification for hiring him directly to save money. The stated reason for offering such a service was to "help save money", but I think we all know the estimator just wants to help himself by inflating the contract price, putting his employer at a competitive disadvantage, and creating an incentive for the average lay person to opt for the cheaper option... The estimator (a non-licensed electrical contractor and employee of the licensed company) is obviously acting in a very shady/unethical/illegal manner since he has a duty to act in good faith, not compete with his employer, and not hold himself out as a contractor unless he's is licensed/qualified.

I am curious to see how you guys would handle this situation? Ignore it, notify his employer, report it to the state licensing board, hire the estimator?
 
I had that happen to me with a water softener company. I was very tempted to contact the company owner and tell him about it. A friend of mine said to stay out of it- not your problem. I went with another contractor who was cheaper
 
your friend should agree to it and see if he can have something in writing for “protection”
If he can get him to do that then turn his ass in with proof. Get a text even or email something linking him then Nail him
 
That is actually a pretty common scam in the contracting business. Sometimes it's a legitimate scam and other times it's a scam scam. The estimator want you to make a quick decision so he's giving you a big discount to encourage you. Some people he decides would prefer to have a scam so he presents it as a scam even if it's not, or it could be.
 
petersonra said:
That is actually a pretty common scam in the contracting business. Sometimes it's a legitimate scam and other times it's a scam scam. The estimator want you to make a quick decision so he's giving you a big discount to encourage you. Some people he decides would prefer to have a scam so he presents it as a scam even if it's not, or it could be.
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So how would you handle it?
 
Xptpcrewx said:
A friend of mine received a quote from a licensed electrical contractor the other day to add/modify some circuits to his home. The estimator came out and quoted the job at an elevated price, then immediately suggests he could do the work for 33% less if my friend contracts with the estimator directly in cash (behind the company's back). The estimator divulged the company's profit margin, fees, and overhead costs as justification for hiring him directly to save money. The stated reason for offering such a service was to "help save money", but I think we all know the estimator just wants to help himself by inflating the contract price, putting his employer at a competitive disadvantage, and creating an incentive for the average lay person to opt for the cheaper option... The estimator (a non-licensed electrical contractor and employee of the licensed company) is obviously acting in a very shady/unethical/illegal manner since he has a duty to act in good faith, not compete with his employer, and not hold himself out as a contractor unless he's is licensed/qualified.

I am curious to see how you guys would handle this situation? Ignore it, notify his employer, report it to the state licensing board, hire the estimator?
Click to expand...
Me, ignore it and move on. Someone that insolent can usually talk their way out of a situation. Not really worth my time and effort.

look for a different contractor.
 
Would you want that to happen to
you? would you want to know if it did?

Karma is a b***h... if you don’t report him, it will come back on you some day in some way.
 
Clients are advised to check local permit records to see who's competent with inspections for the work they need.

Then advised to tell each bidder they're competing against 2 other licenses with permits.

When they gripe to me about permits, and wan't me to do it illegally, I tell them:

"See why home-owner claims can be denied by default, because criminal conduct can be assumed, and is not insurable."
 
Hussman used to service their refrigeration equipment, heard many stories about their techs telling their customers they would do a repair job for less, undercutting their employer, their wages & bennies were covered by that high overhead, & would not be surprised if that was a major reason they got out of the service end.
 
I would be cautious about who you rat out to whom. There was a local remodel contractor here in the area whose sales people used to promise people a discount if they could do the work without a permit. They would get permits anyway. It was just a marketing thing. Some people just love to be in on a scam.
 
norcal said:
Hussman used to service their refrigeration equipment, heard many stories about their techs telling their customers they would do a repair job for less, undercutting their employer, their wages & bennies were covered by that high overhead, & would not be surprised if that was a major reason they got out of the service end.
Click to expand...
Or they might not have wanted to be in that business anyway. I needed some brickwork repaired one time when a van ran over it. None of the local masonry contractors I talked to to were interested in it but two of them told me they would see if one of their employees was interested in some side work. one of those guys actually ended up doing the work for me.

Service work is a tough way to make a living due to the insane overhead. But you also do not want to tell customers "No" because they will remember that.

Probably not something that is done much these days though, if nothing else due to liability concerns.
 
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