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Updated about 1 year ago, 10/09/2023
Questions to ask GC
Hi everyone,
I am a relatively seasoned investor with over 10 rentals but I just closed on a property in North Park, San Diego where the plan is to make some additions and add and ADU on the lot. This is the first time I am embarking on a project like this so the learning curve is steep.
The plans are in the final stages of approval with the city and I have multiple bids from GCs based on those plans. I plan to meet with 2 or 3 GCs this week to walk the property and discuss the project further.
I was hoping to get some advice from others on here about what kinds of questions you would recommend I ask other than the generic obvious ones. I have no prior experience in construction and have never worked with a GC before. This is a fairly large project so I am trying to ensure I do as much due diligence as possible before choosing a GC to work with.
Any feedback and/or guidance on what kinds of things I should be asking would be very much appreciated.
David
Major remodels and new construction are long and complex processes, so there's an endless list of questions that you could ask and you probably won't have (or understand) all of the answers considering it's your first time. But here are the topics that are most critical for you - the customer - to ask about and understand (not in any particular order)
1) Scope of Work - Understand what is included in their contract and what is considered an optional extra. Make sure you understand each GCs SoWs so you are comparing apples to apples.
2) Payment and draw schedule - Make sure you understand not only how much it is going to cost, but also when they expect you to pay them.
3) Timeline - pretty self explanatory
4) Experience and portfolio - Ask them about what kind of construction experience they have and ask to see photos or even in-person tours of past/current job sites. Make sure their experience is relevant to your project. Of course, you should also make sure they are licensed.
5) Change orders - ask them what their process is for handling change orders. Ideally there will be 0 change orders, but I have yet to see a customer who makes it through an entire remodel without altering the original SoW.
This is incredibly helpful! Thank you so much!!
Quote from @Ryan Normand:
Major remodels and new construction are long and complex processes, so there's an endless list of questions that you could ask and you probably won't have (or understand) all of the answers considering it's your first time. But here are the topics that are most critical for you - the customer - to ask about and understand (not in any particular order)
1) Scope of Work - Understand what is included in their contract and what is considered an optional extra. Make sure you understand each GCs SoWs so you are comparing apples to apples.
2) Payment and draw schedule - Make sure you understand not only how much it is going to cost, but also when they expect you to pay them.
3) Timeline - pretty self explanatory
4) Experience and portfolio - Ask them about what kind of construction experience they have and ask to see photos or even in-person tours of past/current job sites. Make sure their experience is relevant to your project. Of course, you should also make sure they are licensed.
5) Change orders - ask them what their process is for handling change orders. Ideally there will be 0 change orders, but I have yet to see a customer who makes it through an entire remodel without altering the original SoW.
Excuse my ignorance but I am assuming a change order is any change to the original plans?
Yup, exactly. A CO generally refers to any change to the original plans and/or SoW after construction has already begun. They will usually impact the cost and timeline for the project. Sometimes they are necessary/unavoidable but in my experience most of the time they're just a result of the customer being indecisive or getting carried away with the excitement of seeing their vision come to life. Do your best to stay disciplined and stick to the plans. It will save you a lot of money in the end.
Got it, thanks so much for that insight Ryan!
I would recommend you go and look at the contractor's previous ADU builds. Talk to the owners of those ADUs.
@David Rutledge I have a great referral if you need an ADU contractor, shoot me a PM