All Forum Posts by: Matt R.

There's a lot that would go into that and some other things to consider: - Addressing/Zoning and obtaining separate suite numbers for the single address - New storefronts and separate entrances - Separation of HVAC and plumbing - Separation of electrical services and separate meters - Parking lot size/capacity - Access to each space/egress Make sure you're talking to the right architect and engineers. Dealing with the utility department is never easy and adds time. Landlord improvement costs on something like this would be higher than your usual strip center, and that will drive up lease rates, so please keep that in mind as well. Good luck!

Welcome to BP! There is a wealth of information here in the forums. Also be sure to check out all the Podcasts. Very informative. Good luck!

@Rob Terpilowski when you get potential contractors involved would depend on how set you are on the deal and how certain you think you can make the numbers work, I would think.  It also depends on how skilled you are at assigning a rough budget.  If you're comfortable enough to get within 10-15% of what it's actually going to cost, you probably don't need to get a GC out there right away and you can wait until after you're under contract to get actual hard bids from GC's.  When you're ready, here are some good DO's and DON'Ts when getting bids:

DO

Write out a detailed scope of work that outlines exactly what you want to do.

Clearly define what (if any) materials you will buy and what the GC will supply.

Get multiple competing bids.

Check GC references, call past clients of theirs and possibly even ask to see their work.

Closely analyze each bid and ask a lot of questions on things that are not spelled out.

Ask each bidder for an anticipated schedule for the work to be completed.

Ask each bidder about their desired payment terms.

Sign a contract/written agreement with the successful bidder.

DON'T

Waste people's time if you're not serious about hiring them.

Walk the job with competing bidders at the same time.

Assume that all GC's will see the work happening the same way.

Pay large sums of money in advance unless it's justified.  (DO Ask for receipts if it's for material deposits.)

Share competing bid information and "bid shop".

Encourage bidders to get into a bidding war.

Try to low-ball contractors.....they will try to cut corners or make it up with change orders a lot of times.

And finally, DON'T assume that "All Contractors are Crooks" or that "All Contractors Will Rip You Off".  Most of them are just hard working people trying to earn a living.  Usually, you only hear that bad stories about contractors ripping people off on the news.....not the ones who show up, work hard, and do a nice job.  Communicate with your contractor often, do your research, visit the project regularly, and pay all your bills on time, and hopefully you'll build a strong partnership/relationship that you're both happy with at the end of the project.

Good luck!

@Daniel Hyman is correct on all accounts on this one, and provided good information for the process of dealing with 1099's.  We've had increased undocumented workers here in Colorado, and they rarely want to provide a SSN or EIN.  I try to steer clear of those workers on my jobs unless it's a one off or something very small.  One of the other posters noted that you're probably taking on added liability with someone like this, and that may or may not be worth the risk.

If they do a great job, and maybe just don't understand the process or how to build the cost of paying proper taxes into their bids, maybe you can mentor them or help bring them along if it's someone you want to continue to do business with.  Try to assist them with proper bidding, providing correct paperwork for tax purposes and insurance, and continue to give them business to help them grow.  I've helped several people build their businesses that way in the past, and you've now created a loyal vendor partner who works hard that you can count on.  It can be very rewarding.

Good luck!

I might adjust a little for "medium slope" and it also depends on how close it is to a localized labor force and materials suppliers. You might increase in-town estimates by 5-10% to account for these factors. Also, plan on the work taking a little longer than building in a metro area. It's been my experience that mountain and rural builders are a little more laid back on scheduling. Good luck! I'd like to hear how it actually comes in.

If the building department operates under ICC (International Code Council) regulations, you cannot pull a permit unless you are a licensed GC. It's a 4 hour exam based on the current UBC (Uniform Building Code) thats being used in the jurisdiction you wish to work. As far as insurance goes, anyone doing GC work should carry general liability. The premium is based on anticipated volume of work. An umbrella policy will not cover subcontractor work and they should also carry a general liability policy. If they are more than a sole prop, they will also most likely need to carry workman's comp, but those requirements vary from state to state. I'm sure there are building departments that allow "Owner Permits" or something of that nature, but those are more rare.

Just saw this and there have been a lot of good responses. A few ideas from another GC: Get everything in writing. Make a schedule and make sure the milestones are being met. Establish a pay schedule up front based on progress. Get everything in writing. Communicate often and visit the project to verify work complete. Ask for copies of GC license and insurance. Never pay an entire contract up front. Get everything in writing. Good luck!

You're also not including the cost of additional time that you'll spend not making money off your property because the project takes longer than it would with a GC. A lot of times, hiring a good GC will pay for itself in the time you save. There is a stigma out there that "all construction people suck" and "all contractors are crooked" but there are a lot of good ones out there just trying to earn a living. Do your homework before you hire someone and make sure you're clear on what you want. Have it all on writing.

One more thing....always leave yourself some wiggle room on your budget.  Having a contingency fund of 10-15% on most projects will alleviate the stress caused when changes come up.  Changes arise on almost every project.  Don't cut it so close that a potential change creates a catastrophe on your project.  Plan ahead and have that reserve ready to go.

@Robert Leach has a lot of this dead on.  I'm not in the "Rust Belt", but in general communication is the key in dealing with your contractor.  As with any business dealing, building trust both ways is paramount.  Certainly check references and get multiple bids and feel comfortable with who you're working with before hiring them.  If something feels off, it probably is.  If something seems too good to be true....i.e. a much lower price, something is probably missing from the bid or is not apples to apples.  That's where that third bid comes in to help select the right number.  Typically, at least two (or hopefully all) of your bidders will be grouped together and it will make your choice a little easier from the standpoint that you'll know that you have the scope of work properly covered.

Be thorough in what you're asking for, and be clear about what you want included and excluded from the bid.  When reviewing invoices from your GC, be thorough and ask a lot of questions.  Have them walk you through the bill and ask them why they are billing what they are billing if it does not make sense.  Be wary of contractors who ask for large deposits up front, but also understand why they are asking.  If you are having a lot of high end items that require a long time to get installed, they will be justified to ask for a deposit to cover those costs.  There are other instances when asking for a deposit is quite reasonable and fair.  Again, ask questions and keep an open mind.  Many owners want to use a contractor as a bank to finance the work, and that's not fair to the contractor either.  Again, find a happy medium that makes both sides happy and makes it a successful build.  Don't let the contractor get too far out ahead of you on collecting money versus the work that's done.  Ask for a list of their subcontractors, and ask for lien waivers (or proof of payment) to the subcontractors to make sure that the money is getting to the people who have earned it.  Any legitimate contractor will have no issue with supplying these types of documents to you to build that trust.

Finally, and Robert hit on this already.  Pay your bills on time or early.  Once you've agreed that the billing is correct, pay your contractor.  Especially in competitive markets, fast pay means faster work and loyal crews.  Keep that money flowing, and they will keep showing up.

Good Luck!