Contractor Scope of Work

[Melissa Dunn]

My husband and I are new fix and flippers, we are about half way through our first renovation that we have done most of the work ourselves. We are preparing to higher our first GC to get this first property completed and move on to our next. I really want our process of hiring, and ongoing process to be streamlined and consistent. Any input or suggestions as far as contracts (with any/all contractors and other employees we may hire), scope of work and draw schedule programs or templates that you use and love, Any other programs or Apps that you have found helpful in organizing , scheduling, communicating, and just keeping everyone on the same page and clear on expectations. Thanks so much for the input!

[Blair Poelman]

Remember that a GC is just a person who has worked in the construction industry long enough, has a bond and insurance, and has passed the test to get a state-issued general contractor license - but that license has literally nothing to do with their ability or desire to FINISH your project.  They could really easily start it, but completion is another thing.

I suggest you interview at least a couple GC's.  Check references but remember they are giving you references to their buddies who would never talk smack about them.  Look at their existing projects, call the licensing body at your state and ask if there are any outstanding cases against them, etc... Do your research, and then go with your gut of who WANTS the job, who CAN DO the job, and WILL do the job.  

I always hire pro-permit contractors. To me, skirting permit rules indicates a lack of professional integrity.  If they are willing to put their license on the line by breaking state and local laws and rules, what's to stop them from screwing little-ole me?

Additionally, I recommend you provide your potential GC's with complete full disclosure of your expectations, desires, etc.  You are hiring them, but they are also agreeing to (or not agreeing to) work with and for you.

I do 2 versions of my SOW - one that is fairly general that I'm comfortable sharing with prospective GC's.  It is detailed enough to give the GC enough intel to make their decision to take on the project or pass on it - but not so crazy that it would scare off a good prospect.  Then I have an extremely detailed version -this is the one that has no chance of being misunderstood - this is the one that the hired GC gets.  It is extremely granular and has proven to be very helpful because it sets clear expectations and puts the guy to work on a specific directive.  I have an abundance of printed pictures that I've marked up with notes or with references to a SOW sheet. My SOW leaves no room for interpretation or misunderstanding. Unless there is a specific "I don't really care about ABC, just want XYZ as a result", the guy will know exactly what his job is.

A GC is just a person doing a project, and most people and projects need to be managed by an owner.  Be prepared to play the boss role by keeping your workers in check.   Remember that people work for people, and then get paid for their work - and nobody likes to work for an A-hole so be cool, set clear expectations, manage the project appropriately, keep things professional, and you're GC will likely take good care of your project.

Lastly, I always tip my GC and his/her guys.  On a 50k project I tip between $1,200-$2,000 in cash.  It's on the lower side if there's no dirty sewer work or dead animals or real gross tasks involved.  Higher if the team is dealing with some.... stuff.  A case of beer is only $15 but I usually get $500 worth of brownie points out of it.