How to get a contractor to meet their timeliness?

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How to get a contractor to meet their timeliness?

Member since 2020 · 223 posts · 233 votes

I've had so much trouble getting contractors to just get CLOSE to what their job time line estimates were. Any tricks or ideas to put into a contract to incentivize a realistic time line? Some kind of money incentive? Some kind of legally binding contract? How do you do this without pissing off the contractor, or making them simply disappear if they go over the time frame?

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Mark Miles

Rental Property Investor · Philadelphia, PA · Member since 2016 · 542 posts · 715 votes

Lolol, I love all the ambition in this thread. There isn’t a single contractor in the Poconos who will sign any agreement with a penalty clause in it 🤣🤣🤣

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Mark Miles
Rental Property Investor · Philadelphia, PA · Member since 2016 · 542 posts · 715 votes
3y
Quote from @Scott K.:

I've had so much trouble getting contractors to just get CLOSE to what their job time line estimates were. Any tricks or ideas to put into a contract to incentivize a realistic time line? Some kind of money incentive? Some kind of legally binding contract? How do you do this without pissing off the contractor, or making them simply disappear if they go over the time frame?

Ugghhh… you’re operating in the Poconos, right? Good luck - the Poconos workforce is garbage 😢
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Penalties in the contract that accrue per day they are late. They will then give you priority.
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Scott K.:

I've had so much trouble getting contractors to just get CLOSE to what their job time line estimates were. Any tricks or ideas to put into a contract to incentivize a realistic time line? Some kind of money incentive? Some kind of legally binding contract? How do you do this without pissing off the contractor, or making them simply disappear if they go over the time frame?

Yep, you tell them you finish on time I will give you more work, or if this is your only job, you will give them a 5% bonus. If not penalize them
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Mark Miles
Rental Property Investor · Philadelphia, PA · Member since 2016 · 542 posts · 715 votes
3y
Lolol, I love all the ambition in this thread. There isn’t a single contractor in the Poconos who will sign any agreement with a penalty clause in it 🤣🤣🤣
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
3y
If no contractor will sign a penalty clause, incentivize them to hit budget and time deadlines instead. The flip side is once they realize they will not hit their bonus you may be de-prioritized.
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Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y
Quote from @Scott K.:

I've had so much trouble getting contractors to just get CLOSE to what their job time line estimates were. Any tricks or ideas to put into a contract to incentivize a realistic time line? Some kind of money incentive? Some kind of legally binding contract? How do you do this without pissing off the contractor, or making them simply disappear if they go over the time frame?

Hey Scott,

What I used to do whenever contractors never finished the work early, I would incentivize them if they got the job done at a specific date that I wanted, this has worked for me most of the time and it allows to build a better working relationship with your contractor and ensures that they also don't do a bad job. Also on another note, make sure that you have the contractor to write out a written timeline on when the job will be finished so that you both have the right expectations.

If this approach doesn't work, then I would just recommend looking for someone else, most of the time it isn't worth the trouble going after them with an attorney. There's always someone willing to do the work and someone that can finish it within your proposed timeline.
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Leslie Anne Morris
Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
3y
Let me know when you figure it out! It is an issue everywhere due to the nature of contractors taking on too much work. This is usually why folks in real estate get a contractors license.
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Get them on a payment schedule, make a list of things that need to get done before payments. If project is 60k I split the payments into 4 draws of 12k, and rest upon final walkthrough
If your contractor gets pissed from a contract fire them
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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
3y
Quote from @Mark Miles:

Lolol, I love all the ambition in this thread. There isn’t a single contractor in the Poconos who will sign any agreement with a penalty clause in it 🤣🤣🤣

I dont know a single contractor that would sign a homeowners contract , the contractor provides the contract and it certainly doesnt have a penalty clause .
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Larry Turowski
Flipper/Rehabber · Rochester, NY · Member since 2014 · 1k+ posts · 1k+ votes
3y
I agree with others that the carrot works better than the stick. However, projects running beyond schedule is almost universally true, from us little guys to big multi-million dollar projects. To protect yourself, run your numbers to account for projects taking twice or even three times as long as expected.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
If you can get them to agree to it, offer a bonus for finishing early and penalties for finishing late. For example, if they need 30 days for the job, give them a 5% bonus if they finish five days early and a 5% penalty if they are more than one week late, 10% penalty if two or more weeks late.
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Nate Sanow
Investor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
3y
Withholding pay usually works, and allows me to find someone else if necessary
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Kerry Noble JrPro Member
Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
3y
Quote from @Eliott Elias:

Get them on a payment schedule, make a list of things that need to get done before payments. If project is 60k I split the payments into 4 draws of 12k, and rest upon final walkthrough
If your contractor gets pissed from a contract fire them

agreed! thats what I like to do
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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
3y
Quote from @Nate Sanow:

Withholding pay usually works, and allows me to find someone else if necessary

That is the fastest way to get work to stop .
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Nate Sanow
Investor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
3y
Quote from @Matthew Paul:

Quote from @Nate Sanow:

Withholding pay usually works, and allows me to find someone else if necessary

That is the fastest way to get work to stop .

@Matthew Paul according to the context of the original posters post, the work already stopped. Too many get messed over by paying...for stopped (incomplete) work.
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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
3y
Quote from @Nate Sanow:

Quote from @Matthew Paul:

Quote from @Nate Sanow:

Withholding pay usually works, and allows me to find someone else if necessary

That is the fastest way to get work to stop .

@Matthew Paul according to the context of the original posters post, the work already stopped. Too many get messed over by paying...for stopped (incomplete) work.

The original post was about being behind schedule . Not stopped or incomplete work . The fastest way to get a job to stop is not paying the contractor on time .
Delays are normal on a construction project , subs are busy , suppliers are waiting on manufacturers , inspectors are a week behind , change order wasnt signed , etc .
Its gotten harder since covid , the biggest problem is finding labor .
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