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Updated over 7 years ago,

Account Closed
  • Investor
  • Miami, FL
32
Votes |
80
Posts

Saving by hiring out of state builders / contractors

Account Closed
  • Investor
  • Miami, FL
Posted

I am in the process of building an industrial facility in Los Angeles, and i am currently taking bids from GCs and subs. I have received bids from local compagnies and out of state contractors willing to travel, and it appears that out of state contractors are generally giving quotes at least 50% to 60% inferior to local compagnies!

These compagnies seem legit with solid portfolios, they are licensed in CA and insured. 

A 50% - 60% price discount obviously makes a huge difference

To me, beside the price difference, the interest lies in the fact that these guys may want to get the job done quickly as their interest is to move to the next one asap. And time is a lot of money.

Unlike local contractors who have dozens of projects at the same time and are not in a hurry, out of state builders are fully commited to the job and will eventually complete it in a shorter time, which may translate in greater profit for the investors.

Another advantage i can see is that it widens your options when the workers you need are in limited supplies in your area. Due to the boiling real estate market, and surge in prices builders are extremely busy these days and i've already been turned down many times by contractors fully booked until mid 2018

What's your take? Has anyone here already dealt with out of state contractors for large projects?

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