Bonuses for your Rockstar Contractor? (David Greene BRRRR Book)

[Miko Yeo]

Good Day Fellow Rockstars! I have been reading David Greene's BRRRR Book and on a section with the GC he mentions a way on how to figure whether the GC is lying to you regarding the Timeline or not. His Process is as follows:

1. Carl mentions that he can get the Job done at 8 Weeks. You then ask "Are you Positive on that? Just asking so that I can plan around it."
2. Carl now mentions "Alright, 9 Weeks". You then respond "Actually Carl, I'm gonna give you 10 Weeks and a 5% Bonus from Total Job cost if you finish on time."
3. Now Carl will be Ecstatic, But here's the trick. You follow up with "But if you are to go above 10 weeks I will have a 5% Penalty of the Total Job Cost for every week you go beyond the agreed Tenth. I need to be very sure you’re being real with me here, and not just telling me what I want to hear."
4. Now if Carl is Excited and accepts it. It shows that he can really do it at the Set Timeline but if he were to make excuses, stammer or backpedal then we know Carl has been Full of Crap this entire time.

With the above said, Is this something one would still apply when you have found your Rockstar Contractor? And if not, How would you talk to your Contractor about him not having a Bonus and Additional time on a Project anymore? (Do you convince him otherwise for instead of Bonuses and Time you can bring him "More Volume"?)

Thank you & Would love to hear your Inputs Fellow Rockstars! ;)

[Alecia Loveless]

@Miko Yeo My GC is non conventional. He can’t be pinned down. But in my market if I looked for someone else I’d likely be out 10 months and then get 1 job then be out another 10 months.

Just tonight, 11/1 I had a no heat call. The tenant thought they were out of oil and got a fill up. Then the delivery guy couldn’t restart the furnace and told him there was no power to it but it wasn’t the breaker.

I called my G/C who does a bit of everything and he dropped what he was doing and within 45 minutes I received a text that the furnace was fixed.

I expect to have an apartment build out done this month. The walls are done and the shower is in but everything else must be completely installed from floors to the kitchen including a fire escape.

I’m in the process of buying another property and once it closes we’ll have to immediately install new smoke detectors and carbon monoxide detectors which he’ll have to take time from the apartment project to coordinate with the electrician on.

He’s worth his weight in gold and I wouldn’t risk our relationship by offering him a “Bonus” threatening him with a timeline.

[Matthew Paul]

No contractor is going to insert that type of verbage into the contract they have you sign . It will have verbage covering them due to delays beyond their control , extras , etc . 

[Miko Yeo]

@Alecia Loveless Thank you for much insights, What you said really made sense. And gotta say, That is one hell of a Contractor you got there, He is most certainly worth his weight in gold :). (A Total Rockstar just like yourself haha!) 

Aside from that, Thank you once more and Best of Luck on your Apartment Alecia :)

[Miko Yeo]

@Matthew Paul Yes I agree, Thank you as well for the Insight. Will definitely keep that in mind. Much Love & Happy Investing Matthew! :)