First flip project-How do I prepare the scope of work?

[Allen Smith]

Just got my offer accepted on my first flip property. Have read J Scott's book on estimating rehab costs and listened to tons of BP podcasts.  I am unsure of how to prepare the scope of work. We are going to be our own GC and find HVAC, roof, plumbing, concrete and electrical. Want to find a contactor to do everything else. Have 3-4 recommendations. This is the area that I am the most unsure of. We can explain our vision of what we want very well, but worried about how to put on paper. Hope this makes sense. I'm sure we will get a lot better after the first. Any tips?

[David Robertson]

Hey Allen,

I have a SOW Document Template in my fileplace which should help you get started writing a SOW:

https://www.biggerpockets.com/files/user/drobertson/file/sample-contractors-scope-of-work-documents

[Allen Smith]

This is great. Thank you so much. This will be a tremendous help for us to get started!!

[Allen Smith]

Following you on your social media. Going to give your software a look. Thanks for the help.

[Evan Wiesner]

@Allen Smith you're in one of my favorite markets! I LOVE Guthrie for flipping!

No matter how you do this part, be methodical. When I've trained people it's always been with a very simple system to begin with.... room to room.  No joke.  

Go into a room and label everything you need and want to do. Flooring (how much), lighting, switches, cabinets, etc. Whole house items, exterior, landscape..... everything in every room that you will touch. 

As simple as that sounds, by doing it you'll create 1) a list of your materials you need (most of which at first glance we all overlook our first time) and 2) a clear expectation for both you and your contractors/trades of the work needing to be done.

You'll also identify questions you still need answers for (can lights or pendants over the island in the kitchen? paint colors in the bathrooms? flooring transitions from the living room to the hallway?)

[Allen Smith]

@Evan Wiesner. Thanks for the advice!! Great call. Never thought about Guthrie. We live in North Edmond and I have looked at several homes around Waterloo and Charter Oak mainly for rentals but thought it was to far out. Are you renting, flipping or both. Started look and making offers 30-45 days ago and this is my first project. Thanks!!

[Cassi Justiz]

I don't have much to add but that's a great sample scope of work @David Robertson! 

My one little tidbit is to not expect anything to be an "understood."  My most recent example was having to remind the experienced yard guy that you can't just throw all of the yard debris over the fence. Also, having to have a handyman come back to re-install the smoke detectors they took down while painting and replacing face plates in a high end rental where they painted over all of the outlets. To be fair, I did not specifically tell him NOT to paint over the outlets.   

My first scope of work looked like:

- paint master bedroom x color. White trim.  

Now I'm at the point where on my next punch list is going to be more like 

"remove all vent covers, outlet covers, switch covers, and door hardware. SAVE VENT COVERS. Walls to be painted x color, ceiling x color, trim x color, window sills x color, closet and bedroom door painted x color (including brand and sheen). Replace all hardware with brushed nickel hardware. This includes hinges and knobs on all doors. Do not paint over hinges. All outlets and switches to be replaced from almond color to white. Outlets, switches and face plates should all be white. No almond. Replace vent cover. Clean all over spray from windows."

It may be excessive, but there will be NO question on what I want during the rehab. I realized really quickly that if there is a question, most of the time an executive decision will be made on your behalf. 

[Jen R.]

You’ve gotten some good advice here. I’d also recommend that, as your first flip, you absolutely get a thorough home inspection (if you haven’t done so already), as you can use that to help create your scope of work as well. 

Beyond that, as you collect quotes, make sure that you have everything in writing and highly detailed. And also plan on a hefty overrun budget.

Good luck!

[Allen Smith]

Thanks everyone for the help. Scope of work complete. Used everyone's advice. Contractors coming out Wednesday. Thanks to each of you!!