Yeah, your prices are too cheap

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Minuteman

Senior Member
We had an inspector here that got caught contracting in the same jurisdiction. He no longer inspects.


No secret that I "wear 2 hats" as an AHJ as an an electrician.
#1. Conflict of interest if you work and inspect in the same jurisdiction.

I try to keep a good rapport with the other electricians when I work as an AHJ because it helps with communication during stressful times when I have to be firm.
#2. You ain't the AHJ bud, you work for the Authority.

When I heard this I confirmed that his price was way too low and it would be best for him and the profession if he would raise his prices to be more competitive with that of his piers (including me).
#3. Self serving. You are using your position of authority to protect your own business.
 

ivsenroute

Senior Member
Location
Florida
We had an inspector here that got caught contracting in the same jurisdiction. He no longer inspects.

#1. Conflict of interest if you work and inspect in the same jurisdiction.

#2. You ain't the AHJ bud, you work for the Authority.

#3. Self serving. You are using your position of authority to protect your own business.

The point of this thread seems to have been lost so I will follow the thread drift.

1) No, I don't work in my jurisdiction. I get inspected when I work in other jurisdictions.
2) I am the BCO for the municipality, electrical inspections are part of what I inspect. This is a 3rd party and our state may not be set up like yours.
3) No, he brought up the subject, he offered the information and I told him that I agreed with his electrician friends who want him to raise his prices. I need to know what he is charging anyway since that is what the permit fee is based on.

A few months ago he did a 200A service so I knew what he was charging back then but did not discuss it with him until the recent phone call when he initiated the conversation and offered his information unprovoked. I think his friends are pressuring him as he has stated and there is no pressure from me.

His prices are way below mine and I won't be adjusting mine lower any time soon.

There is not a problem with me agreeing with what he tells me. There is a big difference if I provoked the conversation and prodded him for information. If he feels comfortable talking to me then that is his decision.
 

George Stolz

Moderator
Staff member
Location
Windsor, CO NEC: 2017
Occupation
Service Manager
No, I don't work in my jurisdiction

why wouldn't you?
Because it would be a conflict of interest. You can sign off your own work, or be exceedingly hard on the other ECs to decrease their profit margins.

Ivsenroute, I salute your cool disposition in this thread, just thought I'd throw that out there. :cool:
 

NolaTigaBait

Senior Member
Location
New Orleans,LA
Because it would be a conflict of interest. You can sign off your own work, or be exceedingly hard on the other ECs to decrease their profit margins.

Ivsenroute, I salute your cool disposition in this thread, just thought I'd throw that out there. :cool:

uh, yeah....but come on now, i don't believe that he doesn't
 

Minuteman

Senior Member
I understand the intent of this thread. I talked with another EC about 2 months ago and when prices for service calls came up, we are $15 per cheaper than him. He said that another EC that we both know is $20 more than us. He said in a kind but firm way that we should raise ours.

Last week, I was taking to an EC that I have seen in the supply house but have not talked to much. Prices came up and he is $20 cheaper than us for the first hour and $30 less for ever hour there after! So I hear you.
 

480sparky

Senior Member
Location
Iowegia
No, I don't work in my jurisdiction

why wouldn't you?

I don't get it..... seems like a conflict between the two statements.
emoticon_test_by_vampire_meme.gif
 

ivsenroute

Senior Member
Location
Florida
Because it would be a conflict of interest. You can sign off your own work, or be exceedingly hard on the other ECs to decrease their profit margins.

Ivsenroute, I salute your cool disposition in this thread, just thought I'd throw that out there. :cool:


Thank you George, I appreciate that. I always try to do what is right and "take the high road". Not everyone believes or agrees but that is how I operate. The electrical work is fill in work for me since the inspections are down and there are not enough to support me. I get licensed in the munis that require it and have a Master Electrician License in a large city that has a testing procedure for journeyman and master.

Oh and for the record, I am a 6 y/o boy from Oregon Heights, MN:D
 

Rockyd

Senior Member
Location
Nevada
Occupation
Retired after 40 years as an electrician.
Thank you George, I appreciate that. I always try to do what is right and "take the high road". Not everyone believes or agrees but that is how I operate. The electrical work is fill in work for me since the inspections are down and there are not enough to support me. I get licensed in the munis that require it and have a Master Electrician License in a large city that has a testing procedure for journeyman and master


__________________
"If you always do what is right to others you can't go wrong"
USMC 1982-1988.

Good enough for me, till someone else can prove differently.

USMC 1982-1988 Speaks pretty clear for me. I started playing EM in the U.S. Navy from 78-82.
 

iwire

Moderator
Staff member
Location
Massachusetts
but if you were an inspector and caught someone working without a permit and then after getting the permit he was there for two weeks on a job that he listed as costing $2K it would be a little suspicious.

I understand that and if the permit is based on the cost of the job it makes sense that he asked, I also notice he was nice enough not to fine the guy for no permit.

Now that said, once he determined the price on the permit was accurate he should not be telling the guy he does not charge enough.
 
I understand that and if the permit is based on the cost of the job it makes sense that he asked, I also notice he was nice enough not to fine the guy for no permit.

Well, there's a couple of ways to say it's too low. On the one hand, "Gee that's awfully low, I don't know anyone that could do it for that little", and there's "You don't charge enough and that's starving the rest of us."

Now that said, once he determined the price on the permit was accurate he should not be telling the guy he does not charge enough.

To throw out something about prices- I don' have a problem with the AHJ questioning the job price on the permit. If the permit said $200, why shouldn't someone cry foul? Look at it this way, if you sell a two year old car (that isn't all beat to ####) and put $500 on the bill of sale, you can bet the MVA/DMV will flat out tell you it's too low, and probably tax the sale on the blue book value. I'm not suggesting that we go that route, but we know there are contractors that 'forget' to get permits, undervalue the jobs, and cut whatever corners they can.
 

iwire

Moderator
Staff member
Location
Massachusetts
Well, there's a couple of ways to say it's too low. On the one hand, "Gee that's awfully low, I don't know anyone that could do it for that little", and there's "You don't charge enough and that's starving the rest of us."



To throw out something about prices- I don' have a problem with the AHJ questioning the job price on the permit. If the permit said $200, why shouldn't someone cry foul? Look at it this way, if you sell a two year old car (that isn't all beat to ####) and put $500 on the bill of sale, you can bet the MVA/DMV will flat out tell you it's too low, and probably tax the sale on the blue book value. I'm not suggesting that we go that route, but we know there are contractors that 'forget' to get permits, undervalue the jobs, and cut whatever corners they can.

I am really not following you, twice I have said I understand why an inspector would question the price because of the inspection fees

But this

When I heard this I confirmed that his price was way too low and it would be best for him and the profession if he would raise his prices to be more competitive with that of his piers (including me).

Clearly goes beyond asking about the price and into telling a contractor that he will be inspecting that they are not charging enough. IMO there is no way to spin that in way that makes it right.

To me it is the same as inspectors who tell the customer the EC is over or under charging .... it is not any of the inspectors business.
 

Minuteman

Senior Member
Bob, the way the OP explained it to me, sounded like he was saying that the EC opened the pandora's box about pricing and therefore the conversation was completely legit.
 

iwire

Moderator
Staff member
Location
Massachusetts
Bob, the way the OP explained it to me, sounded like he was saying that the EC opened the pandora's box about pricing and therefore the conversation was completely legit.

IMO it is not a 'legit' conversation no matter who started it.

Lets say the EC was trying to pump the EI for info about how much other ECs are charging? Lets say the HO asks the EI if the EC is charging to much?

IMO when your in an authority position many things become off limits to you, at least while 'on the job'.
 

satcom

Senior Member
Northeast, Pa has everyone with a pick-up and a gun rack working a side contracting business, most are not insured, and have little or no experience in whatever trade they push. So they may be very experienced, or have little knowladge of the trade, no licenses requires in most areas, only permits, and usually only when your caught, the side workers work for anywhere from $6 to $10 an hour, and are happy to get that in most cases, at times, they might fight over a $200 job, we all have to realize every part of the country is different in laws, wages, and job options, go easy on the guys trying to get by, they may be in a depressed area of the country.
 
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Minuteman

Senior Member
3) No, he brought up the subject, he offered the information and I told him that I agreed with his electrician friends who want him to raise his prices. I need to know what he is charging anyway since that is what the permit fee is based on.

His prices are way below mine and I won't be adjusting mine lower any time soon.

There is not a problem with me agreeing with what he tells me. There is a big difference if I provoked the conversation and prodded him for information. If he feels comfortable talking to me then that is his decision.

:confused:
 

growler

Senior Member
Location
Atlanta,GA
Now that said, once he determined the price on the permit was accurate he should not be telling the guy he does not charge enough.

There is really no way to determine if the price is accurate. It's pretty much on the honor system. They have to take the contractor's word for the cost of a job or audit his books and they are not going to do that for one small job.

Most remodeling jobs in this area get de-valued by about 50% when the GC goes to pull his building permit. An $80K remodeling job gets a stated value of say $40K-$50K. The building department gets to see the plans but not the contract. Values on new construction are more accurate.

This guy says that he is doing $2K of work but neither the inspector nor the building department gets to see what's paid for materials or labor. There could be a $10 job going on but the contractor is never going to admit that because he pulled a permit with a stated value of $2K.

I have to assume that contractors in that part of the country are no more honest than they are here when it comes to stating the true value of a job. If a contractor is questioned then he can always say that he works cheap.

There are no laws against working cheap and there are laws against lying on a permit application.
 
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