New Investors Dealing With Contractors

[Troy Cole]

In what ways do contractors take advantage of new investors wholesaling or flipping and how can we avoid this treatment?

[Account Closed]

I would encourage precise written scope and timing definition be built into a contact signed before work proceeds.  Include a clause to cost them for delays in a reasonable manner.  Define scope change and cost adjustments.  Careful with any upfront money.  I would pay for material and manage it separately yourself.  Pay labor on a progress payment schedule related to %completed weekly.   Require contractor to pick up material and you pay for it well in advance so you don't hold up the show.  Quote at least three contractors with an understanding that lowest bid wins.  Review bid with lowest bidder before awarding to validate no omissions...particularly if there is a large difference.  Find a customer focused contractor. that hussles.  Lump sum bids are the best if scope is clearly defined and you don't anticipate changes.  Stay involved as much as practical...daily if possible.  Watch things closely particularly if it's moving at a fast pace.  Good luck!