All Forum Posts by: Matt R.

Can you please be more specific on your question?  I don't quite understand what you're asking about with regard to "what the contractor pays for".  There are several ways to structure an agreement with a contractor including having them do all the work "turnkey".....in other words, he provides all the materials and labor to perform the work, having the contractor provide labor only and you provide all the materials, or any variation in between.

Check to see if the utility company is offering any rebates as well to purchase a higher efficiency unit. Sometimes, a utility company rebate can narrow that gap in pricing as well.

Welcome to BP!!!! I'm in Denver as well. Crazy market here. Good luck and feel free to reach out for any rehab questions.

Hello I'm an experienced GC in Denver and unfortunately, there's really no such thing as a "standard budget" as each project is different. That being said, you can get a pretty good idea on rehab costs one of two ways that I'd recommend. Obviously there are other ways, but I'd suggest the following: 1. If you have a good relationship with some tradespeople/subcontractors in your area, you can ask them for unit costs on some typical items....install a toilet, install a duplex receptacle, cost per square foot for paint, etc, etc. That's a good way to get a handle on what things actually cost in your market and put a rough budget to the work without getting an actual estimate. You can also go to Home Depot and go "shopping". Make a list of the items that you'll typically use, and then you just have to talk to subcontractors for labor costs. 2. There is a cost estimating database called RS Means that you can consult for unit pricing. It's not as reliable as talking to local subcontractors but you can build in some fluff to cover yourself. In either case, don't forget to include such things as permit costs, GC markup, dumpster/trash hauling, cleanup, etc etc. It's not an easy thing to master quickly but with some practice, you'll get the hang of it. Good luck!!!

Another consideration.....OSHA regulations and fines.  If there's an accident on your jobsite (heaven forbid), you would be identified and classified as an "employer - anyone who hires or causes work to be done" and you could be subject to comply with OSHA regulations for the construction industry.  A guy falls off a ladder, into a hole, hits his head, etc. etc.  These things happen all the time, and this is why professional contractors pay big money for safety training, third party consulting, and compliance to avoid getting such fines.  For example, a guy not wearing a hard hat could result in a $600 fine.  Bad extension cords, improperly run temporary power, the list goes on and on.  If the OSHA compliance officer deems that it's a willful violation, it triples.  You could also be cited and ordered to appear in court.

These guys love to roll around town and camp out across the street with cameras to film your jobsite activities to look for violations.  They watch and tally everything up and by the time they set foot on your jobsite, it's too late.  If you don't know how to deal with these types of situations, it can get ugly fast.  BE CAREFUL with this.  I've seen it happen to very responsible and knowledgeable contractors.....licensed and unlicensed alike.  I've had OSHA30 training, and I still don't know it all.

Just something else to think about.  Make sure whomever you're hiring follows proper safety practices, has a safety plan, proper tools, PPE (personal protection equipment), etc......especially on a demo job.  Aside from the fines, you don't want to have to live with the consequences of a death or serious injury on your project because someone gets hurt doing something stupid and you didn't know what to do.

Also, how are you going to pull permits without someone being licensed?  Maybe your municipality is lenient on that or allows like homeowner's permits or something, but most cities require a licensed contractor to pull a building permit.  Feel free to reach out if you need help.  I've been a GC for over 18 years.

Good luck!

I've had the best luck with local lenders. Go meet them and sit down face to face. It's all about building a good relationship from the start. If you tell them what you're trying to do and what your goals are, many of them will be more willing to work with you.

Definitely check out the Ultimate Beginner's Guide under Education.  It's awesome!  Worth the time to watch it.

I was more referring to code analysis stuff.  Many remodels require full code analysis, especially in Denver and all that must be done by a licensed architect.  I've even gotten stuck down at the city on some small remodels when they wanted an architect to prepare plans with full site plans, zoning and code analysis.....for interior remodels.  It's crazy here right now.

Depends a lot on the building department. Denver, for example is requiring stamped plans on more and more projects....both residential and commercial. That means hiring an architect and getting real construction docs put together before a permit can be pulled.

Tips for hiring a contractor:

1.  Get a written estimate.  The more you're familiar with what needs to be done, the better you will be able to evaluate if they're bidding the work in total or if they're leaving things out.

2.  Get multiple bids, if possible.  If you can get three bids, compare the scopes of work being bid.  Most likely, you'll end up with two next to each other and one that's off a bit.

3.  Be clear about what you want.....materials, finishes, etc.  The better you explain what you want, the better the bids will be.

4.  Be clear on schedule and expectations.  Make the contractor present a total project schedule and have them update it weekly.  Always meet with your contractor face to face at least once a week to talk about problems, changes, schedule delays, etc.  Open communication is the key.

5.  Beware of contractors that heavily load their draw requests to the front of the job.  Asking for a little money up front for materials is OK, but pay that bill once the materials are on site.

6.  Ask for lien waivers from the contractor from his vendors to ensure they're paid in full.

7.  Check the BBB in your area or ask for references.  Ask for photos of their past work or ask to see some of their work.  Most GC's are proud of the good work they've done and will be happy to show it off.

8.  Check with the local building department to make sure they are licensed (if necessary to be licensed).  Not all rehab work requires a license.  If you're just painting, doing new floors, and mostly cosmetic work, they most likely don't need a license or permits for that work, but ask the building department.  Once you're building walls, doing plumbing, electrical, structural, concrete, etc. work, they will need the proper permits.

These are just a few ideas.  Good luck!!!