Where Does the Price Difference Between a Company, a Private Contractor, and a Crew Come From?

Useful information for the customer

Why are companies more expensive?

Company rates are considered the baseline, but they don’t yet include overhead costs, planned profit margins, and VAT. All of these mandatory items are added to the final cost of the work.

Overhead costs cover the organization of the process: office, equipment, tools, and so on. Planned profit margin is the company’s profit. VAT is a tax paid to the state.

As a result, the actual cost of a company’s services is always higher than its base rates. And the base rates themselves are noticeably higher than those of independent crews.

What do specialists and crews get paid for?

Specialists are paid only for the work itself: square meters, linear meters, volume, etc. Their price doesn’t include supervision, documentation, or a damage-compensation guarantee. It’s simply payment “for hands.”

What about responsibility?

Can specialists act as legally responsible parties? No. They work as hired employees and are only accountable to their employer within the scope of labor law.

Can specialists guarantee quality? Partially. For a couple of square meters of tile, you can ask for a redo. But if a specialist ruins a hundred square meters, it’s too late to demand anything — they simply won’t have the funds to cover the damage. A guarantee must be provided by a supervisor or a company, not by an individual specialist.

When you hire a crew

You should understand that you’re cutting not only documentation from the list of services, but also supervision and a damage-compensation guarantee.

If you require a guarantee from a crew — ask yourself: did you pay for that? A guarantee is like insurance: if it wasn’t paid for in advance, there will be no compensation later.