Just got a rehab quote...what do you think?

Question

Good evening BPC,I need some work done to my duplex and was provided with the below quote. I've already reached out to the contractor for some specifics on what will be used for some of the items and am waiting on a reply. I just wanted some feedback on what the community thought about the pricing as well as what the proposal may be missing. I definitely want there to be a definitive completion date and he verbally committed to the work taking 7 days. In addition to the below, they are also going to lay down a 35X20 concrete car port for $1600.Looking forward to responses.OUTSIDE WORKRepair front porch steps. Replace rotting wood on rear of unit. Secure gutter on first floor, rear roof. Remove vines growing on the rear of unit. Replace missing downspout on rear of main roof. Repair fence in rear yard. Extend downspout on rear of first floor roof to ground and away from foundation. Must bring side porch to code and pull permit. Install return arm (storm door closure) to side porch screen door. FIRST FLOOR Secure flooring in bathroom. Install CO detector in living room. Remove sheets from wall and basement. Recaulk between tub and floor in bathroom. Replace cracked outlet cover on left wall in the kitchen. Documentation of furnaces serviced within the past two years Properly connect dryer exhaust pipe in the basement. SECOND FLOOR Caulk between tub and floor in bathroom. Repair water damage ceiling in kitchen. Clean, sanitize and secure carpets in unit. Repair ceiling in living room. Replace CO detector in hallway. Replace hardwired smoke detector in attic. Replace sheetrock at the top of attic steps. Replace treds on attic steps, as needed. ADD ONS (in addition to certificate of habitability inspection) FIRST FLOOR: Replace fire extinguisher. Repair holes in basement stairway. Repair hole under kitchen sink. SECOND FLOOR: Replace living room closet door. Repair middle room/bedroom closet ceiling. Reinstall kitchen counter end cap. Install new kitchen floor. Install two replacement windows in attic. Repair rotted face boards along right side of house. XXXXXXXXX. agrees to do all said work for the sum of $7,725. Payments are to be made as follows: ½ down - $3,862.50 balance upon completion - $3,862.50 _________________________________________ __________________

Manolo D. · Answer

Why do you think a bunch of words, without pictures, and an online community that might or might not know what they'll be posting be better than a real contractor's quote? Not to burst your bubble but I don't think you'll have enough info here, as most of the responders can only speak for their area, and each city might have a different price. It is funny how investors think small of the contractors, and getting stiffed by contractors, but I could replace all the "contractor" word into "investor" and will still be true. A small job like that, most "reputable" contractor could carry the cost and bill you once until the end, but what assures the contractor from not being paid by a client? It is still, a two way street.

Aaron Mazzrillo · Answer

How many square feet is the house?Half down to me sounds like you're about to watch your money run away. With the exception of the kitchen floor and side porch repair, there is maybe $1,000 in materials. Why does a contractor need half down for that scope of work? Most likely to pay for the other job he's still trying to finish. Then he'll finish yours when he gets half down on his next job. This may be the way contractors operate in your state, but my opinion (based on over a decade of experience) find another contractor. When your first getting started, you really should get 3 bids on each job. Yes it is time consuming, but you'll learn a lot in the process and after a few jobs, you'll be able to pick the BS artists out quickly.The last licensed contractor I hired built me a 2nd story deck on the side of a cliff. Deep cement footings, all Trex decking and wrought iron rails - not cheap stuff. He asked for $1,000 deposit and I made progress payments as he worked. $1,000 or 10%, whichever is less is the law here in California and I don't see why any contractor needs any more than that to start a small residential job. When it comes to rehab work, first few days are most likely going to be nothing more than labor for demo any way.

Juliano Pereira · Answer

Not knowing your location, the costs will will vary greatly. I used to be a contractor in the Boston area years back. The amount of work listed for the cost provided does not add up. Also, it is impossible to give a definitive answer as your quote is very basic with not much of a breakdown. Based on the amount of work listed on the quote (not knowing any specific details of the house), this project is upwards of $10k + all day! Numerous factors come into play when evaluating a property for repairs. My advice is to work on your roller decks. Evaluate all tradesmen based on knowledge, yrs in business and reputation. REPUTATION is king! Make sure to ask for "at least" 3 referrals from the last 6 months. 6 months because this should give you an idea as to how busy they are/ have been (I.e company or individual you are interviewing) Any reputable tradesmen (or woman) should and will have numerous references upon request. Heck, they will even go out of their way to provide them to you. References are key for finding the perfect fit for your current and future projects/repairs. Good luck ... JP

Aaron Mazzrillo · Answer

John D. - Are all the other bids asking for 1/2 down as well?

Aaron Mazzrillo · Answer

The biggest challenge you have posting a question about a rehab bid on a public forum is that prices are different in different markets. Here in California, I can get work done much less expensive than costs in Massachusetts. Even using licensed contractors. So, I would probably disregard pricing from anyone out of your area and really focus on terms. I think 1/3 payments are acceptable and often do similar payment structures with my reliable contractors However, even the best take on too much work at times and get into trouble. Never get so comfortable with a contractor that you're making much bigger payments than the completed work justifies. Taking money from one job to finish the last job and looking for the next job to get the cash to finish the current job isn't as uncommon in that world as one might think. Just because a guy can do amazing rehab work, it doesn't mean he is a good businessman and can manage money.Stay on top of him and check in on the job often. Get change orders quoted in writing. Just recently one of the most highly recommended rehab contractors who worked exclusively with investors went BK and took hundreds of thousands of dollars. Personally, I lost somewhere in the neighborhood of $50K on two deals, but I have at least two friends who are out six figures. Contractors are a lot like restaurants; They might be great today, but good places go bad and bad places go out of business without notice.

Matt John · Answer

3% is probably going to be the cost to him for running the card. He is just passing that cost straight to you. That's makes sense.

John D. · Answer

@Aaron MazzrilloThey all have asked for half down. However, when I met with him yesterday, he was agreeable to doing it in three payments. He also advised payment can be made via credit card but we'd have to tack on 3%.

John D. · Answer

Does anyone have any input on the 7 day completion timetable? Thanks again!

Mike Reynolds · Answer

The main thing I see is the language. You should learn the lingo on a bid. That one seems vague. Repair and replace are pretty self explanatory but secure usually means add a few nails and leave it at that. I would get him to "secure" his language on his bid first. I concur that there only seems to be less than a thousand in materials there. I would give a third down then after a substantial completion another third then the rest on the final.

John D. · Answer

@Juliano Pereira thanks for your feedback. I spoke with the contractor today and I am actually going to go to see his crew on a project in person as well as follow up with the referrals he has given. I was referred to him by more than 1 person including some folks at city hall. (he is actually working on some projects for the police dept.) ...and since this looks like your first post JP...welcome to BP ;)@Aaron Mazzrillo thank you. The home is 1600 SF. I have actually gotten 4 bids thus far and they are all in a similar ballpark. He does accept credit cards so that gives me some protection wouldn't you agree? I do appreciate your input! @Manolo D. I completely get where you're coming from and it was not my intention to imply contractors are thought of as "small". I was just looking for some opinions since this is my first foray into REI.