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Updated over 13 years ago,
Managing contractors
Hi,
I am having some confusion on how to develop a working relationship with a contractor, so I am hoping someone here can help me. As I work on expanding my business, I am working with a contractor who just finished rehabbing one of my properties and is getting ready to begin work on the next one.
But here are my questions:
1) If I find a contractor who does quality work, do I still get bids from other contractors to make sure his bid is competitive? The reason I ask is because when he submitted a bid for the current project he finished, I negotiated the price with him based on bids submitted by other contractors. So I am not sure if I should continue getting bids from other contractors just to make sure he's giving me good price. He does good quality work, so that's not an issue, price is the only thing I am confused about.
2) Do you guys let your contractor buy material, or you guys buy the materials and have the contractor provide only the labor part? I have had a really bad experience with a contractor in the past, so I am extra paranoid about dealing with contractors. I just want to make sure that I am not overpaying for anything.
3) What's your disbursement timeline for the project? This contractor that I am working with currently requires 100% of material and 50% of labor before beginning any work.
Thanks in advance for replies.