Contractor not delivering , next steps

[Carlos Eliz]

Hi,

I recently bought my first investment house. I found it thru my real estate agent. It was owned by her client and in need of repairs. I requested bids from several contractors in the area. None of them wanted to commit to specific delivery dates because of covid and a hot market. They are having a hard time retaining workers on site, seems there is a bidding war for their skills. A three week effort is now going into fifth week. I need to protect my investment.

What do I need to do now to get things moving?

If the suggestion doesn’t work, what do I need to do next and how do I prepare to take action?

[Allan Smith]

Take bids and select the best one. And yes the good ones are booked out a few weeks. That's life now.

[Lynnette E.]

You could also put in the contract a bonus if they are done by a specific reasonable date, and another lesser bonus if they are finished a month or two (depends on how much work is needed).  That way your project stays at the top of their work schedule.

[Carlos Eliz]

@Allan Smith thank you for the reply. Life now is what I don’t understand all the books and advice I have is based on pre-pandemic terms. What is a reasonable delivery now?

[Carlos Eliz]

@Lynnette E. That is a good contract term. I could not get commitments on delivery dates because of scarce workforce in my area.

[Bennie Leija]

The Cheapest bid is not always the best selection.

You have a specific schedule to follow and make sure the contractor follows this target date. If the contractor is unable write in contract that a retention will be retained for every day unable to meet date.

And if they meet schedule provide them a small bonus. I usually give them $1,000. Trust me. This will make the target date reachable.

Bennie 

[David Avery]

As a contractor, money talks!!

You may get one that is hungry or slow on work,  Give them a bonus to start by a certain cay or give them an extra $500 on the first day of start of project and a bonus if done by a certain day.

Money talks and contractors also need money just like getting a tenant out of a place  to keep a deal together.

Money talks and this is why your not getting anyone to commit.

good luck