Complete Rehab in DC: How many bids should I get

[Jacob Chaney]

Hello All,

I'm closing on a 6 unit apartment building on Capitol Hill by Dec 6. and two of the upper two units have been gutted down to their walls. These will need complete rehab and renovation.

This is my first time doing a project of this size and I was wondering two things: 1) How many bids/estimates do you usually get to make sure you're not being overcharged and 2) Do you have any recommendations for good reputable contractors in the DMV area that deliver on time/budget?

Thanks BPers

[Lee Marsteller]

Jacob,

Before you get a contractor on board, you will need and architect and engineers to prepared drawings for submission to DCRA for permits. They may be able to help you with some contractors referrals as well. Most of them have contractors that they have worked with on your type of project.

Getting multiple bids is always a good thing to do, but IMHO that will not always get you the best project for your money, unless you have a well defined scope of work and a compete set of construction documents which is a must for a successful project. When you do get multiple bids, make sure they are scoped the same to make sure they are apples to apples. Otherwise, the lowest bid really won't mean anything.

I have several small multi-family projects for investors that I am doing right now in DC. Most of my work is open book, negotiated design-build, that includes permiting as well. We actually become part of the development team on the project and typically have a fiduciary relationship with the owner/investor. We find this to be a much better delivery system than your typical design - bid - build process that your are planning on utilizing. I have been doing these type of projects and delivery system in DC for a lot of years and have decades of raving fan clients. That being said, we do some bid work from time to time when we aren't too busy with our current investors or we are looking to expand our current client base. It really all depends on the season and time frame of the project. More and more investors are choosing this delivery method in our markets as they typically get the biggest bang for their buck this way and virtually eliminate they need for any change orders which can get out of hand without and good well defined scope of work and complete set of construction documents.

One recommendation that I can make without hesitation is to be certain that you use only DC experienced and licensed general contractors when you bid it out, as I have seen lots of developers/investors get delayed due to regulatory issues associated with stop work orders and the like because a lot of contractors don't know the process and the system in DC. You will need public space, DDOT and maybe DDOE permits during the project depending on the scope in addition to your building permit and MEP permits. You should also consider third party plan review as well as that can save you months of carry as DCRA can be really difficult and time consuming as I am sure you already know if you work in the region.

The most important thing you can do is to do you own due diligence on your contractor/builder. Check his current proejct owners for references as well as immediate past project references as well. Also ask for and check some of his current suppliers and subcontractor references to make certain he is liquid and has a good reputation with them as well. Ask the specific questions to their references related to performance on quality, time and budget. This can help you find a contractor that at least has ongoing successful projects and clients and will certainly give you a much better chance of a successful project.

If you need some contacts associated with third party plan review, let me know and I can steer you in the right direction. It should run about $1200-1500 a unit depending on the provider, but can save you months and months of delays in the permitting process. Depending on your carry, it can actually save you some money and most definitely save you lots of time.

Good luck on your project. Lee