San Fran east Bay Area - writing contracts while flipping

[Gagandeep Singh]

Any recommendation on how to document all the work on a flip project? In my last (my first flip) project, things were executed in good faith for the most part. There was literally no documentation. Also, most of contractors don't have a License. Any contract we do with them, is it legally allowed and is it valid? Things I need guidance on is:- 1) how to document a contract 2) timeline - what item will be done in what date and in what sequence. Should there be a penalty in case project is delayed for more than 1 week or so - should there be a penalty? Thanks in advance ....

[Doug Woodville]

@Gagandeep Singh

1) Document work on a flip using a daily diary and pictures with date stamps on them. You can also have your general contractor sign a weekly progress form that you've filled out (if you're at the house daily) or you can even have them fill it out. It can be brief but should mention anything that took longer than expected, any delays or a reduction in crew size. 

2) If the contractors you're using don't have a license then I doubt they will supply a schedule to you on paper so this makes it difficult to really project out dates and hold them to it. You'll probably just get verbal dates and if things go south...? Go onto the states website and you'll find contracts for GC's that you can use and some might even include liquidated damages (that means they pay penalties per day the project is late). I'd highly recommend purchasing a broad project/construction management book though- this should give you the basics and you can work from there.