All Forum Posts by: Rae Stankowski

We will likely cut ties with this contractor.  Thank you so much for all the comments.

@Craig Carlson I did learn from one of the guys working today that the equipment usually has a GPS so theft is not as big of a concern.

@Evan Polaski We did this small job with this contractor this week as a “test” and I think he’s failed.  I had to manage way too much of the work the guys were doing…I am thinking why I am directing them when you are the contractor?? I get that it may be cheaper to work this way but I don’t have time-literally-or the expertise to do this for anything more than cutting trees and flattening campsites🙃 so the next steps we need to take on this property are not ones I can help manage.  Better to find out now than later, I suppose.

@Joe Splitrock You sized up our situation very accurately and this has helped me see we are flying blind.  This contractor has expertise in a specific area that no one else in this area has, which makes him the best fit over any of our other options but we cannot afford to have a disaster, nor costly mistakes.  It would be better to consult for the expertise and have to “manage” that aspect and have someone who can manage the job itself.  Also, almost no permits are needed where we are building and it seems to breed a lax attitude with many contractors and builders we spoke with.

@Aaron Gordy I am in Texas and will ask my husband if he's asked the contractor if he's licensed/bonded.  How is the risk passed on to the contractor if I am the one who paid for the equipment rental with my credit card?

What is considered "secure" for equipment?  We have a locked metal gate with heavily wooded roadside. You would either need to take out the gate (my guess is that is probably not difficult) or cut down trees to make a path out.  We are going to cover the equipment with camouflage tarps this weekend because one is bright orange and can be seen from the road through the trees.

Thanks for the perspective about the options on how different contractors work.

Theft is a concern but just in general the liability being ours and not the contractors when the contractor/his subs is who is using and managing the equipment. 

The insurance from the equipment rental company covers damage to the machine during use, but not theft.  The insurance on damage to the machine also just limits our liability.  There is still $2500 in damages that are the responsibility of the renter, according to the two rental places we've used so far.

I am not sure this is the right forum. It's not a question about rehabbing or flipping but is a construction question on my raw land-to-be-rental property. Please let me know if there is a better place to post this question!  I am new to this, recently selling a rental duplex that I used to live in, and am moving to short-term rentals on the new property.

I am doing some basic work to set up campsites now and then later build cabins. The contractor I am using prefers clients to pay his fee directly to him, of course, but all other payments-for equipment rental, materials, subcontractors-the client pays directly. The positive for the client, he says, is that there is no padding of these fees (though there could be a kickback to the contractor) but I think he also has a cash flow problem and the benefit to him is he doesn't have to front the money, which may not be atypical in this business.

My concern currently is around equipment rental. If the skid steer is stolen off my property, I am responsible for it because I am the one who rented it, even though it might be the contractor's guys who left the key in it overnight. Am I being unreasonable in expecting him to rent the equipment and me pay for the completed job or to reimburse him after the equipment is returned and there is no longer any liability for it?

I am also concerned about paying directly for building materials. What if his cash flow problem puts him out of business? Now I'm stuck with materials but no finished product. I would hope the next contractor can use those but whose insurance is now covering those materials sitting on my property as I am sourcing a new contractor?

Paying the subcontractors directly makes sense to me because that is for completed services.

What do you think?