theoconn

@bestattack Big thanks for your comments. That's an intriguing angle and one we have not discussed yet. It could work very well for landlords to get people out to their jobs. I also think many small landlords do not have contractors they can trust so they could also use it to farm out jobs. Greatly appreciated!

@brudgers thanks for the comments. The contractors that I've been working with on this believe it cuts down on the overhead. They have to be somewhat tech savvy but they welcome takingaway the billing and collecting aspect of the jobs. Fixsmarter wouldn't sell insurance but provide referrals and get referral fees. I think it could comply with the state insurance laws in that capacity. The AAA is great but it is basically a mini-trial and very expensive to get through. This would be agreeing to resolve dispute internally so the parties would be giving up that forum. It would be like when people submit to the jurisdiction of the People's Court rather than going to state court. Mechanic's liens secure non-payment on a job. Here, the money would be in place so that a contractor would not have to start a state court proceeding to enforce a mechanics lien. Appreciate the feedback! I still have to fully vet all the issues that you raise but my preliminary surveys and interviews point to them working out.

Thanks very much. I will shoot you a message. Video is a barrier but also a strong vehicle that should get better and better

@davemel37 I think it starts with smaller jobs but I plan on also allowing for releasing escrow for completion of labor on bigger jobs (with video documentation on each stage)

@SocksCanClose Thanks for adding to the ideas. The range is a great way to do it. range for the bid with an explanation in the video by a contractor. The video bid makes it much easier for a contractor to express his knowledge and expertise to convince the consumer that he is right for the job. A price (in the bid range ideally) gets confirmed upon inspection of the job and the money gets held in escrow.

Thanks for the comment @davemel37. Excellent points. I have been playing around with this issue because I agree the bid system is flawed. Just as when contractors come to the house to bid, I want to go with the lowest bidder but then fear I'll be getting the worst work. Many times I choose based on price and a gut feeling after discussing the project. I believe the way to overcome this is video replies by the contractor discussing the job. The reply will give a customer a sense of the contractor and their knowledge/experience for the project. The ability to bid with a video combined with a range bid explaining in the video gets both parties closer to an informed decision they could get with an in person inspection. The video record on both sides will also assist a mediator in reviewing the project. After the consumer picks a bid, the contractor will inspect the job and confirm or revise price on site. The new price must be agreed to by consumer and money for the job put in escrow with FixSmarter. If a contractor opens up a wall and finds mold or something else living in the house, the parties would then be able to revise price and increase escrow. As the site progressed, I envision it could act as a virtual construction manager where the job is broken down into segments so that escrow can be released along the way (but this would be down the road). The system is flawed generally and I'd love to hear your ideas. I think this solution takes a big step forward because it addresses two big concerns- price certainty for the consumer (revised with full disclosure when unforeseen problems arise) and payment for the contractor. I greatly appreciate your input.

Also, supplies would come out of escrow as agreed and needed. Thanks again.

It would be a streamline AIA arbitration agreement. Angie's List and the other websites have fees in order to get leads. When you get a lead, you are one of multiple leads and you are charged whether or not you get the job. Here the contractor has the fee extracted from the payment he is receiving. If the initial estimate is wrong, the contractor can change estimate (joint approval). As the company developed, a method would be instituted to evaluate the percentage of time/amount a contractor sticks to original bid. Thanks for commenting.

Good point. Escrow gets released if both parties submit approvals. If there is a dispute, videos of what was done are submitted to independent mediator who has final say (reviewed in house as well). The customer objecting will have to pay a small fee to object which is refunded with escrow if they are correct. Thanks for comment.