Tips?

[Alfredo O.]

Good afternoon my fellow investors. I need additional input as we move closer, closer and closer to officially starting all of our rehabs. Want to rehab is done do you typically tip your contractor or are they already make enough money in there we have and I should not feel guilty after the rehab is done?

[Peter MacKercher]

@Alfredo O. I don't tip either. They bid on the work and decide what they want to make on the project. As a contractor I've never been tipped myself either.

When I GC a project I do tip my subs when we complete the work. Usually it's a case of beer, or tickets to a Cardinals game, but never cash. I'm an avid homebrewer so I'm definitely biased here, but beer seems to be a near-universal way to celebrate a finished project.

Another thing I'll do when time is of the essence is add a fun clause in my contracts. It simply states that for every day before the finish date the contractor quoted me, they get an extra $100. For every day after that finish date the price goes down $100. I'm more than happy to pay for fast work, but so far I've never had to. 

Hope that helps!