Originally posted by AggieInvestor:
Simon - your idea of getting multiple bids on a job is a great one. I was thinking I would get 3 bids with a detailed work scope. I mean, I expect the contractors to tell me the precedence of tasks, how long each work package will take and cost. I am thinking of getting an average time and worst case scenario time and cost for each task.(I will go with the worst case scenario in building my budget).
I am thinking of imposing a penalty for everyday the job goes beyond our agreed date except for things that happens due to my fault. I expect that materials will be broken, their will be delay in ordering, one of his subs might have a sick child to attend to some days, but how does one realistically factor these into the project duration if you don't have any experience?
In general, Is this a reasonable approach from your experience?
Thank you
A few things with dealing with contractors, since you are new.
1) Never tell them what your budget is. If you do, there estimates are right at (surprise)
2) Always get a minimum of three quotes. I recently dealt with a contractor that gave me a quote on marble countertops. He asked if he could do the job and I said I had to wait until I got all my quotes in. He asked, surprisingly, you're getting other quotes? I said yes, and he immediately said that to let him know before I decided and he might be able to drop the price. Seems he wasn't giving me his best deal until he found out I was also looking elsewhere.
3) I like to buy my own materials. I know a lot of rehabbers don't like to waste time with this, but I have a full time job and am only doing this part time for now. I shop the best deals around town. There are many ways to cost cut when buying materials, so I would ask the contractor to give a breakdown of material costs and labor separately, so if you can get material for cheaper, you only pay for his labor to do the work.
4) Do not pay the contractors in full upfront. At most, you should give them 25% of the full amount to buy materials (if you are letting the contractors buy materials) or as a deposit to start the job. Then 50% when they are half done and 90% after completion. Always keep a bit at the end after you check their work. If there is anything that they forgot or did subpar, you have some leverage to have them complete it in a timely manner.
There are other things you should know, but I'm getting long winded. Do a search on the articles section on rehabbing.
Many rehabbers do the penalties thing. It's legitimate
