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Updated about 12 years ago on . Most recent reply

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158
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David A.
  • Involved In Real Estate
  • Fort Worth, TX
11
Votes |
158
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Managing Contractors on commercial rehab

David A.
  • Involved In Real Estate
  • Fort Worth, TX
Posted

Good morning all!
I have a few questions for you guys. I am the project manager on a family project at the moment and we are getting started. We are converting a restaurant into a family clinic. I have pulled the demolition permits to knock down some walls and also listed myself as the contractor. I have interviewed a few contractors to give me bids which I am waiting on numbers. This is my first time having to deal with subcontractors and I want to make sure everything runs smoothly. We have removed the old tile in preparation to add stained concrete and need to create 8 patient rooms in this 3,400sq ft building.
1. Where can I get an agreement/contract which will state the scope of the work, time frame to finish, cost.
2. When dealing with subcontractors, do you pay them in installments as you reach certain parts of the job? Do you give them anything to get started?
3. Do you handle the material pick up? Home Depot is 1/3 mile away and I have my truck to pick up the material. Its a big trust issue and I want to keep close inventory of where the budget stands and where everything is going. I don't want to babysit all the time but do plan on periodically checking on them in person or through the security cameras i installed.
4. Subcontractor has many years of experience in commercial and is working on redrawing the floorplan to show the city. Is it a good idea to first get a bid on the framing or just all together. I want to make sure that the contract states his responsibilities and also his quote for the job. Thank you!

Most Popular Reply

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2,920
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James Vermillion
  • Lexington, KY
1,190
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2,920
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James Vermillion
  • Lexington, KY
Replied

David, I am a residential rehabber but I will respond with how I handle these issues:

1) JScott has a great scope of work agreement that he has shared. You may need to signup for his newsletter to get access to it.

2) The contractors I work with are paid when the job is completed unless it is a very large job in which case we agree to installments...never more than 1/3 up front.

3) I usually have the bulk of the materials delivered by Lowe's or HD, it makes it much easier than making a bunch of runs to and from the store...just make sure you do a quick look for damage on anything that is damage prone.

4) I would say either would work but this is out of my expertise. I have had jobs broken up into separate quotes for various reasons before though (mainly for bank loan draws).

Again, commercial is not my expertise but maybe my answers will help.

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