General contractors: what do you need?

Question

If you're in the business of managing the various sub-contractors during remodels and flips, I'm very curious to know what your biggest challenges are. I'll go out on a limb and guess that it's currently not finding enough work to stay busy.

What's your biggest headache? What are you wishing you just didn't have to deal with, or could have someone else take care of? What do you wish your clients understood that they just don't seem to get?

Matt M. · Answer

@Jordan Kohl

At this point I am a one man show. Over the last ten years I basically transitioned to working primarily for investors. I don’t make as much money, but I avoid the headaches of homeowners, kids, pets, their schedules, furniture etc.

I’d much prefer an empty house, by myself, music loud doing my thing.

I have a great bunch of clients, and barely have to write estimates, just send bills. I am always busy too.

Bruce Woodruff · Answer

My largest problem has always been the customer. More in recent years. Unreasonable expectations of time and budget....even though they have complete control over both. Constant changes to the approved plans, requiring Change Orders. Not a couple per job, I'm talking 30-40 per project...and then of course the shock when the schedule and budget became affected by their COs, and with the blame always on the GC and his subs.

Now, I was working with high-end customers and projects - average remodel:$500k+, average build $2mil....but you would think these people would be smarter than your average client, right? Nope. One lawyer didn't want a drain in the shower because it was ugly.....you can't make it up....

And then came HGTV....people would watch that at night and expect the same on the real-world jobsite...like the lady that wondered why my painter was taking a month to paint her whole house when she saw a HGTV painter do it in a half hour...

Rant over.

Matthew Paul · Answer

The HGTV syndrome for sure .

Yes sir , we can gut your house , put in a custom kitchen , a second story , new landscaping in a weekend for only $15,000.  While you live there with minimal disturbance in your normal daily life .

Joe Splitrock · Answer

@Jordan Kohl I am not sure that sub-contactors have a shortage of work to stay busy. What market are you in?

Will Barnard · Answer

Makes us wonder how in the heck this guy passed the bar exam!!!

Back on topic, biggest headache is always clients and the city (building and safety for permits). Homeowner clients think that everything in construction should go perfectly, no mess, no dust and if there is a drop of paint out of place, they will find it and let you know about it. As to the city, at least Los Angeles building and safety, they should all be hog tied and dropped in the ocean, none have a clue what they are doing!

Charlsi Kelley · Answer

@Gavin Mathes you are in the right place to learn. While yes it’s true you don’t necessarily need the cash if you provide the right value and have a good partnership agreement with someone who can fund the project- the fact that you have some hands on experience will help too. However, in my opinion (completely my opinion here!) 2022-2023 will likely see some shifts in the market and a slight cooling off/correction as interest rates are expected to rise. Inventory is still lagging far behind demand so it shouldn’t be a huge “crash” by any means, but A lot of the folks on here who started with nothing had the benefit of a strong tailwind with a crazy up and up market over the past decade. Make sure you run your numbers conservatively and are confident in the ARV. You could also consider getting your RE license and save some % on commissions- that is a nice (albeit small) buffer.

Bruce Woodruff · Answer

Correct. I had to explain why they were a necessary item 😂

Jordan Kohl · Answer

I went back and read my original post and I can see how it was confusing, apologies.

Jordan Kohl · Answer

@Joe Splitrock I was trying to say that these days, contractors and subs have no problem finding work. Most markets with which I'm familiar have lots of work. Given that, I'm asking contractors what challenges they are facing.

Tristan Scott Zell · Answer

@Jordan Kohl

Great question, though I am not a GC I do have experience being a sub and doing our own projects with my dad. I think the biggest thing is unrealistic expectations from the customer, we have learned that communicating upfront about the realities of remodeling especially older homes and how unexpected things that pop up need to be fixed can cause delays.

General contractors: what do you need?

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