When Looking for a Contractor...

[Jenny D.]

Hello BP Flippers & Rehabbers...

I'm thinking about implementing the rehab/flip strategy.  I have 2 questions for folks who've completed 3 to 5 flips/rehabs.

1. What are the 3 things look for when selecting a contractor?

2. What are 3 things "you wish you would have known" when you were deep in the rehab/flip and something when wrong with the contractor?

I appreciate your thoughts and feedback.

[Mohammad Parwez]

You can build your checklist around the following questions while selecting a GC.

Also it can be refined for a project specific. 

Checklist for selecting a general contractor:

Selecting the right general contractor for a construction project is a crucial decision that can significantly impact the project's success. To help you make an informed choice, here's a checklist of important questions and considerations to probe and interview a general contractor:

1. Qualifications and Experience:

- How long have you been in business as a general contractor?

- Can you provide references from past clients or examples of completed projects similar to mine?

- Are you licensed and insured? Can you provide proof of insurance and any required permits?

- Do you have any professional certifications or affiliations with industry organizations?

2. Project-Specific Questions:

- Have you worked on projects of a similar size and scope before?

- What is your experience with the type of construction (e.g., residential, commercial, industrial) and specific features of my project?

- How do you handle project scheduling and time management?

3. Subcontractors and Crew:

- Will you be using subcontractors for any part of the project? If so, how do you choose and manage them?

- How do you ensure the quality and reliability of your subcontractors and workers?

- What is the size of your core construction crew, and what are their qualifications?

4. Project Management:

- How will you manage the project, including scheduling, budgeting, and communication with me as the client?

- What software or tools do you use for project management and communication?

- Can you provide a detailed project timeline and budget estimate?

5. References and Portfolio:

- Can you provide a list of references from past clients, including contact information?

- Do you have a portfolio of completed projects or photos that I can review?

- Can you share any testimonials or reviews from previous clients?

6. Budget and Pricing:

- How do you handle project pricing, including cost estimates, change orders, and payment schedules?

- Are there any potential cost-saving strategies you can suggest for my project?

- Do you offer a fixed-price contract or a cost-plus contract?

7. Permits and Regulations:

- How do you handle obtaining necessary permits and ensuring compliance with local building codes and regulations?

- Are you familiar with any zoning restrictions or special requirements for my project's location?

8. Warranty and Guarantees:

- What type of warranty or guarantee do you provide for the workmanship and materials used in the construction?

- How do you handle post-construction issues or repairs?

9. Communication:

- How often can I expect project updates and progress reports?

- What is your preferred method of communication, and how can I reach you if I have questions or concerns?

- How do you handle conflicts or disputes during the project?

10. Safety and Insurance:

- What safety measures and protocols do you have in place to protect workers and the project site?

- Are you covered by workers' compensation insurance, and do you have liability insurance to protect against accidents or damage?

11. Project Duration:

- How long do you anticipate the project will take from start to completion?

- What factors could potentially delay the project, and how do you address them?

12. Payment Terms:

- What is your payment schedule, including initial deposits and milestone payments?

- Can you provide a breakdown of costs, including labor, materials, and any subcontractor fees?

13. Contract Details:

- Will you provide a detailed written contract that outlines all project specifics, including scope of work, costs, timelines, and warranties?

- What are the terms and conditions of the contract, including dispute resolution?

14. Sustainability and Environmental Practices:

- Do you have experience with sustainable building practices or green construction, if relevant to the project?

- How do you handle environmental regulations and sustainability concerns during construction?

By thoroughly probing and interviewing potential general contractors with these questions, you can gain a better understanding of their qualifications, approach to the project, and ability to meet your specific needs and expectations. This will help you make an informed decision and establish a solid working relationship for your construction project.

Regards

Mohammad Parwez

NC Realtor and Investor