Knob and Tube Rewiring Pricing. Fixed Estimate or Hourly Rate?



This Electrical Contractor did so many Knob and Tube rewiring jobs in Toronto that we literary could do the job with our eyes closed


From our experience a seemingly same job in two identical houses could take up to five fold less or more time to complete.


When we start jobs replacing just a few remaining knob and tube lights, switches and receptacles with the alleged 10% - 50% of remaining knob and tube wiring, we often end up replacing 50% - 100% of the wiring. Intentionally or not previous renovators hide the knob and tube. Some previous owners, handymen or lousy electricians replace just the visible parts or ends with the new wire, hiding the rest of the Knob and Tube or use a bunch of other tricks.


In many old homes one, two, or three remaining K&T circuits supply power to 60% or more of the house, and usually they are connected to the most remote rooms on the top floor. These lines are frequently over-fused, overloaded, deteriorated or abused and present a high risk of fire.


And even recently replaced or installed wiring often does not conform to code or is outright dangerous. In most cases neither electrical contractor, nor estimator, nor inspector could find that without breaking walls or without extensive electrical tests.


Understandably, when doing estimates contractors are only allowed to do visual examination without breaking walls just to have a look inside.


We think therefore, that no one could give the right estimate for the alleged percentage of knob and tube replacement, the amount would depend of so many things. Estimate in such situation is a tremendous waste of time. Coming for an estimate makes no much sense because no one could see through the walls to find out what the exact scope of the work is. Figuring out the percentage of K&T, aluminum, ungrounded, and NOT to CODE wiring could take many hours. Illegal splicing inside the walls is often impossible to detect without breaking the walls and is much easier/faster to just replace (without breaking the walls).


That is why we would like our customers to consider giving us a job on the hourly rate basis + materials + inspection.


From our point of view it is the fairest deal when the customer pays by the hour exactly as much as the job is worth. And the contractor earns exactly as much money as time, effort and materials were required to do a good job in this particular house or building.


The final cost based on the hourly rate could be lower or higher comparing to the fixed price. Same job in two side by side houses/buildings, for example, could vary by 10% to 500%. And it's not a secret that to protect themselves from the worst case scenario, each contractor would give the highest estimate that is based on the worst case scenario.


Hourly payment method has great advantages for bigger, unclear, and/or complex renovation jobs. It gives the customer much more freedom and flexibility in deciding what to do and what NOT to do. Hourly method would practically eliminate the possibility of disagreement, dispute or conflict. And the customer could make as many changes and additions as he/she wishes. Such changes are unavoidable during most renovation projects and are highly problematic with the fixed amount contracts or fixed price jobs.


As an additional protection for the customer, contractor encourages the customer to exercise the strict control, keep meticulous time-sheets, do unexpected, unannounced inspections, to videotape, to invite an independent electrical contractor or an ESA inspector to check the work at any given moment.


As a contractor, we undertake to do the work to the best of our ability, honestly, to the code, on time, and without delays. Contractor promises to work hard, without unreasonable talking on the phone, coffee, or any other breaks, and without stoppages. Contractor shall not spend more than 40 minutes a day per worker on lunch and/or on all other breaks. Contractor encourages customer to closely watch, control the work and ask any questions.


Here is an example of benefits the hourly rate approach gives you, the customer:


As any other electrical contractor in Toronto we could upgrade only obvious, probable, or only suspicious wiring. Or we could replace all the wiring. Or we could rewire just those circuits that customer told us to, or those lines that are visibly or clearly detectable as Knob and Tube, aluminum, ungrounded, or unsafe.


Hourly method facilitates discussion of all these options during the work. Hourly rate payment method allows you to adjust to the situation and make informed decisions. This flexibility could substantially speed up the process of rewiring and decrease the total cost to the customer.


We would come, have a look, talk with our customers and give an estimate or take the job on the hourly rate basis. The choice is yours.


To sum up, if the job goes smoothly with a few or no obstacles, then the customer would end up paying less if she/he has chosen the hourly rate and more if he/she has chosen the estimated lump sum approach.


If there were many obstacles and complications, then customer would end up paying the same or even higher amount of money comparing to the estimated lump sum amount.


The parties are not allowed to switch the options once it has been chosen and agreed upon.



torontoknobandtubereplace@gmail.com