Washington post Reports: Contractors Making Deals to Stay in Business

Homeowners looking to remodel will find contractors willing to negotiate

By Sandra Fleishman

Special to The Washington Post
Saturday, September 25, 2010 

 With homeowners holding on tighter to their hard-earned dollars -- or trying the do-it-yourself route -- remodelers are fighting to hold on to business by offering to do more for less, said remodelers and experts at this month's annual Remodeling Show in Baltimore.

Some remodelers are cutting their margins sharply; others are willing to do competitive bidding again; and some are offering faster completion dates or more services than before, said industry experts such as Sal Alfano, editorial director of Remodeling magazine, a co-sponsor of the show. "This market is good for homeowners, but not for remodelers," Alfano said.
For a while this summer, it seemed the worst was over. Harvard University's Joint Center for Housing Studies in July issued its Leading Indicator of Remodeling Activity (LIRA), projecting that national homeowner spending for improvements would be up 5 percent in 2010 over 2009 and that the market would continue to improve in the first quarter of 2011.

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