Last post was an accidental click my mistake. Really old post. I guess since I did post Ill comment on it. Ian that is actually the worst way to do it. Not that you will get called on it but you are actually directing them where to buy the materials and not allowing them to make a profit on it (at least thats what it sounded like) That is exactly what the irs doesn't want. You would be better off ordering it having it delivered to the job. You can't direct a contractor where to buy the materials.
IF you line item or put in your scope of work that part of the contract is for delivery of materials that you purchased that might fly and you probably are doing that but just thought Id clarify.
Biggest problem with everyone on this entire forum that has issues with contractors is usually they pay sub par rates and prices and expect the world. Its amazing that someone that makes 20 bucks an hour sitting in an office expects someone doing somewhat dangerous work to work for 10 bucks an hour.
Investors "when they buy right" should have no problems paying an extra 3 or 4 thousand for a decent contractor (that is what the contractor will make on a small to mid size job 10 percent sometimes 20 for retail) that could supply their own materials or not whatever but has employees that you would be proud to say they are working on your job. That usually takes more than minimum wage, and usually they can get the job done for the same anyways especially when you do have more time managing or you have to pay a manager more for having to spend more time managing a job that would take less of their time with a decent contractor.
IF your worried about getting gouged do a cost plus fixed fee contract (best option but be careful with laws on this) or a time and material contract with a max price.
And seriously anyone that tries to say they don't allow change orders is rediculous, not legal at all, even if its in the contract it would get squashed in court. Of course the contractor that is hired is probably so poor for working on those projects they couldn't pay 10 bucks for an attorney to fight it.
