How many contractors is too many?

Question

Hi all! I am in the process of rehabbing my first house for a fix and flip investment. The house needs a good deal of work. Most of the contractors I speak with want to take on the job of fixing the whole house and subcontract any projects that aren't in their area of expertise. My question is: should I find one GC that I am comfortable with and let them manage the rehab; or, should I manage many contractors and only award projects to the ones that specialize in the task(s) at hand. What seems to work best for you? Thank you!

Matt K. · Answer

A GC should have better connections and resources than you would and in theory do better at cost management. I'd go the GC route but I'd get multiple bids and see where they come in. I'd eliminate any outside of the established competitive range... and if you're experienced enough maybe you and your partner should make your own independent estimate to compare. This would only work if you guys have the experience/knowledge to do so ... otherwise it'd mess up the market data.

Doug W. · Answer

Unless you:

1) can be there EVERY day or at the least be available to be there daily

2) know who to call (plumbers, electricians, framers, window installers, roofers, landscapers, etc. etc.)

3) know how to manage sub contractors

4) know what order to have the sub contractors in to do their work

5) can provide a detailed SOW

6) (if needed) can produce or otherwise provide something resembling a building plan for your sub contractors to work off of

7) can estimate take offs (or at least can you confirm a sub's take offs?)

8) are you ok with making 48 trips to Home Depot and then the jobsite to pick up and deliver materials? [Good luck with this particular time suck.]

... if "no" to any of the above I would hire a GC. Otherwise you will kill your project's timeline.

P.S. you will also spend a lot of time getting subcontractor estimates if you plan on starting from scratch with your subcontractor contact list.

Eric C Henry · Answer

Account Closed Thank you for the reply! This confirmed my notion that hiring a GC to learn from would be a wise choice because this is our first flip project. My partner and I have basic construction knowledge, but we would both benefit from a GC's guidance, at least this time.

Once we see how it is done, and create connections in the process, next time we might be able to operate more independently.

Currently, my role in this project is co-management. My opinion is it is easier to walk through the jungle of learning with someone else than it is on your own.

Eric C Henry · Answer

Thank you all for the replies! Very good information here. I'm sure it will help me and my partner save a ton of time, money, and stress.

Brian Pulaski · Answer

I tend to agree, it's risky being your own GC and hiring all the subs/trades with no real experience. It's doable but risky. However be prepared to pay a premium for a GC, as every sub he hires will have his fee on top of it.

How many contractors is too many?

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