interviewing....

[Marcin G.]

I have started interviewing GCs for the property I plan to rehab. I have prepared a detailed scope of work and every time I meet with a new GC I explain what I need to get done and I give SOW to them. Then we discuss details, I ask for copy of insurance, bond, license.etc …I go a little further and also check the GC in the county records …I see a lot of them were (or are) involved in lawsuits ..not sure I should be worried about that one …I know that’s tricky business. Your opinions ? some of them have addresses on the bond, license, insurance …that do not exist ..I mean ..there is no such house on that street …that’s pretty funny..

Question on bond though :

They usually have bond held by some indemnity company in the amount of 10K or 20K …if the projects is around 35K mark …I think I should be seeing at least 35K in bond ? what’s the major carrier of bond money ? what amount should be there ?

Insurance is pretty standard …each occurrence 1M, general aggregate 2M, damage to rented premises 50K. I can request to be added to insurance …this way, every time they cancel I should be notified, correct ? I could also ease the pain and occasionally call the carrier to check on the insurance…just an idea.

I was also deliberating occasionally hiring guys who have no insurance. Yes, I know I should not be doing that but my competition does it all the time and that’s why their houses are priced much cheaper …do you think Builder’s risk insurance will cover if an uninsured worker gets injured on my property ? is there some additional rider I could purchase to buy that protection. I just don’t want to go via workmenscamp path …I do not want to have any employees, period. Thanks for your help