Lesson in Out of State Construction

[Ryan Heywood]

The Goal: Have the two wooden fences that create enclosed patios replaced before I paint the building. The fourplex is in Phoenix while I live and work in California.

What I Did: First I talked about the repair with my father-in-law, he lives very close to the area and got me several quotes. He's very good at getting a cheap price and ensuring good work, but sometimes this comes at the expense of priority and reliability. I also had asked my PM, and their quote for a replacement was a little bit more, but still comparable. Hoping that they would get it done sooner I gave them the green light. The cost came to $1,850.

What Happened: After a couple weeks the PM got their tech over. It must have taken them part of a day. I then got a email stating the work was done and several photos from a distance. I had my FIL check it out, it turns out they only replaced one fence, and the quality of work wasn't very good. Lots of gaps and sub-par materials.  

My Mistakes: I did not give a detailed scope of work, I was lazy and basically just asked for them to "repair the fences and some trim". Thats it, and any other details were shared over the phone and leaving no record for me to reference. This is entirely my fault. Now I'll have to fight for every little detail, as nothing was specified. I also paid the PM up front, leaving me with basically no leverage. It will be hard to get someone to come back and fix work that they have already been paid for, and any repairs will likely be done in a resentful and half-assed manner if done at all.

Lessons Learned: I need to get a system figured out for composing detailed scope of work proposals in a timely and efficient manner. I should make sure discussions are documented in email whenever possible. Have a third party verify completion of work when possible, or include provisions for photo/video walkthroughs in the scope of work. Always use a pay schedule tied to the completion of items on the scope of work.

Next Steps: I'm emailing the PM to see why the back fence was not completed. Ideally, I'd like to get reimbursed for the half not completed and invest time into finding a GC that can do a better job. Start researching an excel document for scope of work. 

I'd love feedback and suggestions. I hope this little story is valuable information for other OOS investors. 

[Brian Pulaski]

Sorry to hear it. One thing I like is detailed scopes of work. I use a spreadsheet, and have the contractor check off each item (included or excluded) when he submits his bid. It can also incorporate added items or deducted items along with the costs associated with them. I don’t always have them, but any time I have new contractors or multiple bids, I make sure to have a good SOW for apples to apples bids that can be used later in case issues arrive.