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Updated about 1 month ago, 11/11/2024

User Stats

16
Posts
3
Votes
Fernando Tello
Pro Member
  • Fort Lauderdale, FL
3
Votes |
16
Posts

Who pay's utilities while in construction?

Fernando Tello
Pro Member
  • Fort Lauderdale, FL
Posted

Hey BP Community,
Is the first time I am doing a multifamily ground up construction. I hired a GC to manage the build out, but there has been no consensus on who is responsible for the utility payments (Water and Energy). 

Now, I know someone could say the cost should be "negligible" couple of hundred dollars a month, in comparison to the whole buildout budget, but still I do want to know what are the best practices out there. The contract I have in place is a fixed sum contract, and in the breakdown there are no utilities. (Didn't catch it on time). 

Thanks for sharing your experience! 

  • Fernando Tello
  • User Stats

    11,574
    Posts
    13,392
    Votes
    Bruce Woodruff
    Pro Member
    #5 All Forums Contributor
    • Contractor/Investor/Consultant
    • West Valley Phoenix
    13,392
    Votes |
    11,574
    Posts
    Bruce Woodruff
    Pro Member
    #5 All Forums Contributor
    • Contractor/Investor/Consultant
    • West Valley Phoenix
    Replied

    The Owner should be paying the utilities unless otherwise specified in advance. I mean, it's your property......

    At least that's how I always handled it....

    User Stats

    128
    Posts
    73
    Votes
    Jamie Hora
    • Developer
    • San Antonio
    73
    Votes |
    128
    Posts
    Jamie Hora
    • Developer
    • San Antonio
    Replied

    If it is not in the contract, the contractor has the right to believe they are not responsible for it. 

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