All Forum Posts by: Joel Forsythe

It’s excellent to enter the GC business with this attitude, so stay in that mindset.

I’m a lifer in construction that evolved to a GC then to design-build (design-remodel really).

Its been said above; don’t talk, write. Get an excellent contract based exactly on your business model, makes sure its correct for your state, get one from a construction attorney in your area, worth every penny. Do detailed scopes of work and do detailed release schedules that match obvious progress points that a homeowner easily recognizes. Either blatant to the naked eye or evidenced by a signed inspection record by municipal authority or 3rd party inspector. Make it make sense to the owner why it’s time for the release due. Make it follow your course of construction plan or flexible enough to jump around. Documents reduce debates.  I mean, its called General “Contracting” for a reason, not General “Construction”.

Something not mentioned. Insurance. Never……Never…..Ever……Operate without CORRECT type of insurance for your EXACT business model. If you put it in a contract, subbed or not, make sure your insurance knows you sell that scope of work and cover it. Follow procedures that keep you qualified in your insurers eyes, and ask them blunt questions about how you could screw up your coverage. Construction is one of the worst businesses to gamble in (ie profit and liability), from injury to defects to contractural disputes. As a small GC you could be ruined instantly if uninsured and  sued.  DO NOT be one of those guys that says that’ll never be me, I’ll never have a dispute I cant resolve, I’d never need to be sued by anybody…. Thats not how it works.  Figure out your insurance rates, factor them into your bids. 

On top of what Bruce said above, depends on a lot; how big, how high, how was framed? How many people can load it?

Your municipality may be lenient or strict. If forced to “legalize” it with permitting, either ask if they have “prescriptive measures” for deck framing you can review and see if it matches, or hire a Str Eng to investigate and draft a plan that matches the deck + any retrofitting they feel is necessary. Have the plan approved by municipality. A deck is a mostly exposed structure, 90% transparency of construction methods and materials. An Eng can work with it then add to it if necessary instead of tearing it down. Footings and house connections may be the hidden detail to overcome. Not really a big deal.

I’ll side in here supporting what Will has said. As a lifer residential contractor, I think it’s bad for both parties not having a release schedule that reflects costs/profits according to scope instead of percentage. I guess large, high volume builders could care less and simply float the cash flow irregularities (ie each scope is not an equal job cost for progress- nuts impression) and its just easier- lazier- to crank out contracts faster this way. Actual detail release is a safer business model for all if-when one trade/scope goes sideways, you can compartmentalize it, keep other scopes moving without release disputes IMHO. 

Late sight on this, I’m a NELA neighbor and GC in LA. Quick to emphasize, Do Not request any city inspection of any kind, you will be asking LA code enforcement to formally cite and digitally document the violation and then put you on a timeline to correct the violation (typically up to 2 years, but I have previous clients that found ways to drag out to 4 years with extensions etc). “Correction” means remove or legally permit the structure. That registered code enforcement violation will be punitively binding to you or the next owner, and will have to be disclosed upon any sale of the property if not rectified. ‘As-Is’ is acceptable position to be in, statement for future buyer “to satisfy themselves research into potential un-permitted yadayada” 

As a GC here in LA with years in the design-build residential market, I’ll caution quickly about novice addition speculation. Additions are new construction. How they are designed and planned affect cost- do you understand what increases structural costs? Then does the floor plan and site plan actually improve upon the existing or just make things worse? Worse typically means more remodeling of the exiting to make the addition work. That’s where $/SqFt fails with additions; what the remodel and repair budget to existing structure will be. I find it best to instead review costs based on scope category budgets 1st- ie kitchen/bath/open space/mechanicals/landscaping etc. then new construction shell scope budgets including pre-con. The only way to speculate an addition based flip would be if you’ve built several and “see” what may or may not be similar to comparable projects, and even then you need margins for significant error. Also, lots of time because New Construction is full plan check and permitting, not over the counter permits. That also tests your knowledge of the local zoning as well as overlay district restrictions.  

2 story additions? If you have never built anything significant in a seismic region you should stay away from imagining costs for 2-story additions in earthquake country. Stacking current building code on outdated building code (or something before eng codes existed!) is no gambling action. You better have great, huge, margins for the ARV.

Hey there. I’m a GC. Despite not knowing your project location, in general, there is little recourse to starting a conflict with a municipal inspector. An inspector, in my years of experience, has wide purview to cite anything they can see as a violation if they feel like it.  Large cities will likely have a ‘supervising’ inspector running the dept, but smaller depts may have 1 or 2 guys tops, doing all of it. There is no level of threat you could leverage to win, as they simply have little to no liability, especially if they are simply enforcing visible permit violations. Its always best to get their corrections in writing on the job site, so you can approach them later with the literal correction complete, no further issues.  If you didn't win a Respectful debate with an inspector on the site, or at least get him to pause and return, your stuck doing what he asks for in this instance.

That being said, its fair to argue with them that the plumbing permit can be inspected and finalized, and a separate  citation against the property should be recorded for whatever violation the inspector believes must be addressed.  I get it if he thinks you are visibly the party doing unpermitted work (ie actively doing anything other than plumbing) and he’s making sure you get your permits.