Buying materials for contractor or paying a quote price?

Question

For major rehab, do you prefer to buy materials for contractor or just pay the GC the price they quote? I'd love to hear your reason behind your choice. If you buy materials for GC, how do you buy in advance to make the most use of time? Also, do you pay the store directly and just let the GC pick up?

Thank you for the feedback!

Chris Mason · Answer

The last painter I hired, which granted is a fairly modest job compared to what many contractors are doing on your major renovation projects, my dude gave me copies of all the receipts + a summary of receipts page, as well as a bill showing his hours worked and hourly wage, and a final piece of paper that literally had $Parts + $Labor = $TotalBill.

I felt that this was uber transparent and really appreciated it.

JD Martin · Answer

For major rehab I specify quality and let the contractor be responsible for materials. For minor stuff I might order it myself. My rationale is that if there's a problem with the materials, it is the contractor's problem as he/she/they were responsible for getting the material. I have seen a lot of projects that went off the rails with finger pointing when the HO tries to middle-man the material in an attempt to save money.

Exception to this might be one-off stuff or things I was really picky about, or that I have existing relationships with good quality suppliers.

Manolo D. · Answer

@Tuan L.HD/Lowes for a major rehab? LOL, pretty pricey, but your choice. Anyway, here is an insight from a contractor. I am flexible to a client's request, if they insist on HD/Lowes, I would simply let them go with me on the first run, then request a "reloadable" card to not bother them, by then I could offer labor and material warranty (HD has really good return policy). I don't like buying in big box, poor quality, low discount. If client wants "at cost" material from big boxes, I have to charge for picking up the materials and management fee on a weekly base. On other side where I get a contract of L&M, I still have my mark-up and discounts, but it is more likely the same outcome with the fees I will be imposing when client wants to buy on the previous scenario. The only difference is, the first scenario the risk / monetary control is with the client, the second scenario the risk / monetary control is all mine. However, if you have enough details on your scope of work (i.e. you specified the tile or fixture you want), it should not really matter, but I will be charging you before I buy materials, before I buy it.

Chris Mason That's a requirement for time and material contract/bill, everything needs to be transparent.

JD Martin · Answer

Most contractors I know will not warranty anything they don't procure on their own. That only makes sense, because if they have to eat a labor redo because of faulty material they want to know they can claw some of that back from their supplier.

Most materials from HD/Lowes are going to be low-end/handyman quality. Most professional contractors will have a source that they use for professional building materials. For example, none of the people I use or know use Lowes/HD for lumber unless they just need one piece in a hurry, because you end up spending hours picking through poor lumber cuts to get serviceable material. Instead, locally, they use a building supply company that has better quality control and similar prices for contractors than the retail price you pay at HD/Lowes.

Ryan Heywood · Answer

Most GCs won't warranty client bought materials. If the material you buy is faulty, you may end up having to pay for it to be pulled out and replaced and deal with getting reimbursed by the material supplier. Reputable  contractors will warranty materials they provide for a specific period of time, as required by CA state law. Unless it's a relatively simple job or you've got solid construction experience, you'll want to proceed carefully, as a good GC's markup includes the value of their experience in selecting the right materials at the best quality available. In the end, this advice is really only helpful if you get a good GC with a solid reputation.

William Wallace · Answer

anybody in the Western NY area.

Tuan L. · Answer

Thank you for all the constructive feedback. I let the GC handle everything as well. But I just want to see what everyone else is thinking/doing.

Justin Fox · Answer

I just let the contractor buy the materials for the parts of the project he's subbing out.  If I'm doing floors, countertops, painting (int and ext), installing cabinet hardware and etc then I buy all the materials for those specific tasks and I get the green light when to get those tasks completed ASAP.  Easy work and saves me thousands of dollars.  The important thing is to find a reputable GC that is flexible.

Doug W. · Answer

I let the GC take care of all construction material. Mostly it is because I don't want to hold up the job and I don't want to have to go to the store and/or haul material. That's not to say that sometimes I don't swing by a Home Depot and say to the GC "hey, need anything while I am there?" and end up picking up odds and ends. In that case I keep the receipts and periodically give him an update on what the total spent is so that he knows to deduct it from our price for that portion of the work.

The other reason is that we have a (semi) fixed price. So if he wants to go to HD for 2x4's vs. the local lumber yard then that is his decision. I believe his purchase decisions are sometimes based on convenience. Maybe the drywall costs more at HD but if it's 40 minutes roundtrip closer than then lumber yard perhaps it's worth it to go with HD.

When it comes to lights and fixtures, etc. I tell him exactly what I want. We have allowances set up. I email him URLs to the product(s). I think he then forwards it to his office assistant and she places the order and uses their credit card.

Jeff B. · Answer

hmm;  Love my wife's expression that applies here:

"Why have a dog and yet bark yourself?"

You've paid for the dog license and by law have to pick up after it, but YOU elect to go barking?

If you're into DIY, then get out the hammer, nails and the saw and go to work, otherwise let the GC do his job as you're paying for FAR more than just a body to do the hammering!

Buying materials for contractor or paying a quote price?

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