Managing Contractors With Flips

[John Sweeten]

Hey fellow Bigger-Pocketers!

So I've recently jumped into the Flipping world and it has been a journey. A " I hope I don't drop the ball" project turned into a " Made more than I thought" project. 

I have been fortunate enough to have stumbled upon a contractor who's work, so far, has been quite stunning. Of course in my ignorance I did not have him under a contract. Yes the time expectancy was about a month and a half overdue, under budget on labor but just over double for supplies. There were unexpected findings with the house that caused some of the supply cost to go up ( Termite damage, water main issues etc ). 

I was curious how the more seasoned flippers manage their contractors, especially regarding expected time frames and estimated supply costs. I realize there is a specific budget for such things, but when do overages turn into completely unacceptable situations?

Any and all tips/advice would be greatly appreciated! Thanks!