Expectations from a GC

[Kim Knaust]

Hi, Can you all tell me what the normal procedures are when you work with a GC? 1) Do you pay something like 1/3 up front, 1/3 half way through and 1/3 when project is finished? 2) Do you get in writing a list of everything your GC said they would do for a certain price? 3) If your GC goes over the bid and asks for more money to complete a flip job, how do you handle? 4) Do GC's clean up the items to throw away when done? 5) When a kitchen needs new appliances, does most GC's include replacing those in their bid? 6) Are things like ceiling fans, lights, etc being replaced usually included in a bid price? 7) Any reprieve when the GC takes more than 2 times as long as said they would? 8) Does a GC make about 10% above their costs usually? In Oklahoma, for starters? 9) When a GC does a bid and didn't mention details about the outside of the home (i.e.- paint), is it assumed they don't touch the outside work? 10) Does a GC's bid include yard work normally or not? Appreciate any and all input! Thanks!

[Ron Daugherty]

1) Do you pay something like 1/3 up front, 1/3 half way through and 1/3 when project is finished? 

    No,  we spell out in the agreement the pay structure.  We start with 25% down for our work.

2) Do you get in writing a list of everything your GC said they would do for a certain price? 

    Yes and No,  the GC doesn't always include everything in their quote, some are laughable how little they put in writing.  We write our own bid with a complete list of the work we expect and then make them sign it.  We use our own contract/bid sheet.

3) If your GC goes over the bid and asks for more money to complete a flip job, how do you handle? 

We make them show what they need more money for and why.  If it's legitimate we will come to an agreement for a fair price.  Let's face it, in this business not everything can be seen and it's not always their fault.   If they can't explain the need, the answer is NO.

4) Do GC's clean up the items to throw away when done? 

Yes to a degree, they pick up but generally don't do what I would call a final ready clean.   We do that ourselves.

5) When a kitchen needs new appliances, does most GC's include replacing those in their bid? 

We don't have GC handle appliances.  We can generally get that done ourselves for less.

6) Are things like ceiling fans, lights, etc being replaced usually included in a bid price? 

We include it in our revised bid if we want it.  The more you document the better, no questions from either side.  Another reason we write our own sheet.

7) Any reprieve when the GC takes more than 2 times as long as said they would? 

It shouldn't get to that point.  You should spot that long before it gets to that point.  Communication is key here, if they aren't meeting your expectations, let them know and talk it through.   If they still can't meet your expectations, get rid of them.  

8) Does a GC make about 10% above their costs usually? In Oklahoma, for starters?   

Sounds like you are referring to overhead and profit, those are usually 10% for each on remodel jobs.  We don't pay it out that way.  We lump it into our bid as a total amount.  It's in there still, it's just a matter of how you want the quote.

9) When a GC does a bid and didn't mention details about the outside of the home (i.e.- paint), is it assumed they don't

Not on ours, we spell out everything they are expected to do.

That's what we do, when we hire a GC.  But, with that said we rarely hire a true GC.   We are generally hiring subs and handling the GC part ourself.   When we do hire a GC, we have found  the above eliminates a lot of the problems you will run into.   Don't assume anything and communicate and things will usually go smoother.   

First sign of trouble, you should be having a sit down and set your expectations.  If they still aren't meeting them, don't prolong it.  Fire them and move on, it never gets better all of a sudden, so move on.

This is how we handle it.  Probably not a perfect method, in fact I know it isn't or I wouldn't have trouble with construction people on a weekly basis, but at least it's usually other problems like shoddy work or not showing up when they say they will.