Investor · Houston, TX · Member since 2012 · 5 posts · 0 votes
I've recently started moving into a new market and the contractors are known for not finishing the jobs or taking an advance and running off. To compensate I was thinking charging $100 for each day over (excluding extreme weather and unknowns that popped up during rehab). I also considered a bonus to finish early. Either way, their estimate to complete the job would probably be longer than necessary just to favor them. I DO pay a certain percentage a couple times during rehab (but after something is completed) and the largest amount at project completion.
I was wondering what others do, if there is a recommendation, or something else to consider.
Real Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 542 votes
13y
Hey Tracy,
Bonus and incentives for ontime and early. Make things easy! I usually have a laborer there at minimum wage to cleanup and run errands.
Yes, pay after work is complete or for materials.
Real Estate Investor · Englewood, CO · Member since 2013 · 988 posts · 258 votes
13y
Tracy,
I also believe providing incentives for meeting or beating timelines is a better method.
Establish a timeline before the work begins. Establish points in the timeline where goals are set and if met, a bonus will be paid.
Establishing a timeline is a terrific idea for both of you to avoid any disagreements and misunderstandings. It also flushes out problems much earlier.